Step 2 Work out your business and household budget

​Types of business outgoings

Fixed costs

Fixed costs are those that are the same amount each month, for example, business rent and business rates.

Business rent

If you pay business rent every three months, divide the amount by three to work out how much the rent costs each month. You may find it easier to budget by paying the rent each month. You can ask your landlord or the agent about this. Otherwise, work out the monthly rent and put this amount aside every month so you can pay the bill every three months.

Business rates

These are fixed each year and are normally paid in ten monthly instalments. You can ask your council if you can pay over 12 months to help you budget.

Business water rates

These are also fixed each year. You can ask if you can pay each month instead of once a year. If you have a water meter, bills are normally sent out every three months. Add up the last four bills and divide the answer by 12 to work out the cost each month. Since 1 April 2017 in England, you may be able to shop around for your water and wastewater retailer.  See the Open Water website for more information about shopping around for water and wastewater services.

Business loans

Your loan repayments are usually fixed. However, if you are borrowing on a variable interest rate, your repayments may change if the bank’s interest rate changes. If the loan is not with the same bank where you have your business bank account, and is not secured on your property, it may be best to treat it as a credit debt.