Recent changes to the way co-working spaces are assessed for business rates are causing considerable concern in the business community. Some estimate that the changes amount to a £600 million stealth tax raid.
Previously, shared workspaces have been assessed for business rates based on the individual units. This usually means that the rateable value is low enough to qualify for Small Business Rate Relief (SBRR).
However, because of a legal ruling, the VOA is now valuing shared workspaces as a single establishment. This pushes the rateable value too high for SBRR to apply.
The Federation of Small Businesses (FSB) estimates that nearly 4,000 shared offices could be impacted by the change. Some estimate that small businesses could be facing increased rental costs of £5,400 per year.
Shared offices are often a good first step for entrepreneurs looking to expand from a home setup and into commercial premises. However, many small business owners could now be returning to working from home.
HMRC have clarified the position on Self Assessment tax return reporting requirements for directors of close companies and updated their guidance for directors of charities.
HMRC have updated guidance on UK VAT refunds for non-UK businesses in a VAT group. Revenue & Customs Brief 10 (2026) explains changes to how non-UK businesses in a VAT group should make future UK VAT refund claims and the transitional arrangements. It also explains how to ask HMRC to reconsider claims made since 1 January 2021 that have been refused.