Business rates
[ch 5: page 32]It is unlikely that an employee’s Council Tax will change as a result of working at or from home. However, it is worth being aware that if you work at or from home, the part of the property used for work may be liable for business rates while the remainder of the property will continue to be liable for Council Tax.
Key to the decision by the Valuation Office Agency on this will be the extent to which a room is used for work and if any modifications have been made to the building to accommodate work use.
If an employee uses a room in their house that is not used for any other purpose than their paid work, or has adapted their house in some way to accommodate their homeworking, they may have to pay business rates.
For more information contact the Valuation Office Agency in England and Wales or a local assessor in Scotland.