Will I end up paying business rates?

Possibly, on the part of the property used exclusively for the business, and a purpose built room is more likely to be assessed than a spare bedroom with a couch in it. The Valuation Office Agency decides. It is often less alarming than it sounds, because small business rate relief means many a self-employed hairdresser or single therapist pays nothing once assessed. Even where rates do apply, the arrangement usually remains far more cost-effective than renting premises.