deejjaayy started this topic @ 23:14 on 26/02/2007
Hi,
I've been toying with the idea of starting up my own business for months, and after having done some research I have finally decided to take the plunge.
Luckily, I have found really good premises, however I'm not sure about business rates. I read somewhere that you can 'haggle' with the local council regarding the rates, but don't want to enter into discussion with them until I know what I'm doing.
My questions are:
(1) Are business rates charged in addition to corporation tax that I pay?
(2) How do I find out how much business rates I will be paying?
(3) Is it true that I can haggle for lower business rates?
(4) Apart from utility bills (electric, gas and water) are there any other bills that I should be aware of other than business rates?
Finally, the business I intend to start up is an internet cafe - any general advice regarding setting up this kind of business would be much appreciated.
Thanks in advance for your time.
Kind regards,
DJ
RE: Internet cafe - business rates and general advice
SysOps | 27/02/2007 08:55 AM
Originally posted by: deejjaayy
(1) Are business rates charged in addition to corporation tax that I pay?
(2) How do I find out how much business rates I will be paying?
(3) Is it true that I can haggle for lower business rates?
(4) Apart from utility bills (electric, gas and water) are there any other bills that I should be aware of other than business rates?
Hi DJ,
1) Yes, they are - business rates are a property tax, charged by your local council. They are the business equivalent of domestic rates (council tax).
2) That's easy, you just call your local council, ask to speak to the business rates department, and give them your address. They will tell you how much you have to pay.
3) No, you can't haggle for lower rates (!) However, you may be eligible for Small Business Rate Relief, which is a significant discount on your rates. You can read more about this here:
http://www.mybusinessrates.gov.uk/rates/other_reliefs/index.html#1
If you think you'll be eligible, ask your local council.
4) Phones and Internet, mobile phones. That's the main set.
As for specific advice regarding your Internet cafe:
1) Make sure you set up a robust network that requires minimal maintenance. Consider using Linux on your machines (Ubuntu is fantastic, if you haven't tried it).
2) From my travels, during which I made extensive use of Internet cafes for months at a time, I can say that location is everything - I hope you've picked a good spot.
Good luck with your new business.
------------------------
www.symworks.com
0845 009 8230
UK web solutions
RE: RE: Internet cafe - business rates and general advice
James Smith | 27/02/2007 09:23 AM
My tip for an internet cafe would be to make the access free if clients bring their own equipment and the coffee what you make your money on. More coffee shops are moving to this model so you need to ensure you can compete.
I object strongly to paying £5 or something just to check my emails and don’t normally bother. I do however chose those locations I know who offer free wifi to have my coffee, and probably spend more than the £5 on coffee and muffins!
Also look to see if the council are thinking of a town centre free wifi service - might kill the business plan just a little bit!
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
