Council Tax

[Tony1954]

Hi,

I have a limited company. I lease a 1 bedroom apartment in Bracknell which am now using for my Airbnb, but I received a letter from the council regarding the council tax. 

Am I to pay council tax since it's not for residential but for Airbnb? Am I eligible to pay council tax or company tax? How do I explain the concept to the council? Anyone with a similar experience?

[Mike-And-Jane0]

@Tony1954 If you are Airbnbing for more than 70 (ish) nights a year and available for twice that then you should be registered for business rates. You need to contact the Valuations Office Agency to get the apartment rated for business rates. My only hesitation is what your lease says - I imagine the landlord might get annoyed if you move from council tax to business rates although they should have anticipated this when giving you permission to Airbnb the flat.

[Tony1954]

Thank you, Mike. The landlord is aware because I signed the contract using my Ltd company. The issue is the council. 

[Mike-And-Jane0]

@Tony1954 just because a contract is signed on behalf of your Ltd company it doesn't give the right to sublet or to short term rent. Are those uses specifically allowed in the contract? Also the fire risk assessment will be very difficult to deal with in an apartment block unless the fire alarm system is designed for short term rentals whose requirements are way in excess of a normal residential building.

If all is well with the lease then tell the council that the property needs to be assessed for business rates.

[Tony1954]

Thank you, Mike. 

The landlord is aware so that is not an issue. The agent who rented the apartment to me specialises in SA apartments. 

I just have to ring the council on Monday. I just need the right information before ringing them. Although I have already started receiving guests for a week now. 

[Helen3]

The agent can't give you permission to sublet for STR that should be in your lease with the landlord . 

You can show this to the Council to register for business rates. But you won't be eligible yet. 

don't forget you need to pay for a commercial  waste collection.

have you had your fire assessment done? 

[Tony1954]

Thank you, Helen. 

As I said the landlord isn't the issue, he came visiting and saw the key safe and the doorbell camera etc. I read on the Bracknell Council website, that they are even encouraging their residents to rent out their spare rooms and if under a certain amount, they would not have to pay tax. I will probably have to go there on Monday or ring. As I mentioned earlier, I just need all the necessary information before ringing or going there.