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UK Inland Revenue Loses Case Against Home-Based Workers

by Robert Lee, Tax-News.com, London

22 October 2003

Home workers in the UK breathed a sigh of relief this week after the Inland Revenue lost a case brought by one of its own employees when she learnt that she might have been forced to pay business rates as well as local council tax.

TThe case concerns Eileen Tully, who was given permission by the Revenue to work from her home after suffering a disabling back injury. However according to the FT, her employer’s attempt to force her to pay business rates was quashed by the Lands Tribunal, which ruled this week that homes should only be re-rated in instances where a house has lost its domestic character, or if it is used as a venue for meetings between employees.

The Public and Commercial Services Union, which backed Mrs Tully, said that the ruling was important, as it affects around 2 million individuals who work from home in the UK.

The Valuations Office, the agency responsible for assessing properties for business rates, is not expected to appeal against the decision.

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