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Inland Revenue relents on home workers

Millionsof people working from home who have been threatened with paying business property rates on top of council tax have won a victory over the Inland Revenue after a landmark case brought by one of its own employees.  Eileen Tully, who works for the Revenue, mounted a successful challenge against her employer's policy of threatening people working from home with paying business rates as well as council tax.

The Valuation Office Agency, the branch of the Revenue that assesses properties for business rates, said it would not appeal the decision. It also agreed to change its guidance to ensure that people working from home, provided they are not running a full-scale business or employing people on the premises, will not be penalised with extra tax.

Siding with Mrs Tully, the judge at the Land's Tribunal, where rating cases are heard, said: "There must be very large numbers of homes in the country in which those living there do some or all of their work, without any outward indication that someone is working in the property." He said a home should only be re-rated if the accommodation loses its domestic character and where employees visit the premises.

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