Rent, Water Rates, General Rates & Premises Insurance: Codes 7100, 7102, 7103 & 7104

Wherever a business is based, occupying that space costs money in more ways than one — rent to the landlord, rates to the local authority, water charges, and insurance to protect the building and its contents.

The codes, and what each one holds

Code 7100 — Rent records rent paid for business premises leased rather than owned.

Code 7102 — Water Rates covers water and sewerage charges for the premises.

Code 7103 — General Rates covers business rates charged by the local council.

Code 7104 — Premises Insurance covers buildings and contents insurance for the premises. All four are Overheads codes and normally carry a debit balance.

A worked example

Say a business pays £2,000 a month rent on its leased unit, £180 a quarter in business rates, £60 a quarter in water charges, and £450 a year for premises insurance.

Rent (code 7100): £2,000 debited each month.

General Rates (code 7103): £180 debited each quarter (or £60 spread monthly if prepaid).

Premises Insurance (code 7104): £450 debited annually, or spread across the year via a prepayment if paid up front.

Why this matters day to day

Splitting occupancy costs across these codes makes it easy to see the true total cost of running a location, which matters when comparing premises or negotiating a lease renewal. It also flags quickly if one element — say business rates after a revaluation — has jumped unexpectedly, rather than that increase getting lost inside a single "premises costs" figure.