Are you thinking about starting a business and running it from your home? Are you undecided or weighing up the pros and cons about running your business from home? If you are, there are certain factors worth considering before making that decision.
The first factor you should consider is the type of business you are venturing into in relation to the environment in which you live. For example, it would be unwise to venture into a business that will be noisy and expect to comfortably run it in a quiet residential area. Is your business venture suitable for your area?
Do you need permission to run your business from home? For instance, you might require permission from your mortgage provider or from your landlord, if you live in a rented property; or from the local planning office, if you plan to make alterations to your home solely for the purpose of your business; or from your local council if you are expecting to have loads of customers or receive a lot of deliveries. It is worth noting that using your home, or parts of your home for a business might incur business rates from your local council as it would mean you are carrying out non-domestic activities in a domestic environment.
Don’t forget to look into insurance for your business, as there is a possibility that your standard home insurance won’t cover the activities of your business. For instance, the continuous movement of customers in and out of your home, damages that might occur on equipment or furniture that you use for the business, etc. You might have to contact an authorized insurer who can help decide which insurance plan would be suitable for what you want to engage in.
Usually, taxes are automatically deducted from pensions, wages or savings so people who rely on a different source of income will need to have this means reported in a tax return. This means that you would have to register your business in a tax return. Also, you should note that if at some point in time you decide to sell your home, you might need to pay a capital gains tax on the parts of your home being used for the business. However, in cases where you have just one home and you have lived in it as your main home for a long period of time or if you didn’t have the intentions to use it to make gains at the time you bought it, you may get a Private Residence Relief.
In cases where you decide to employ people for your business, you might have to pay a business rate, if your employees are working in your home. If this is the case then it’s important to ensure that you meet the necessary requirements as an employer; such as carry out safety and health risk assessments, adopt and adhere to employment law requirements and ensure that you draw up the right contracts to be used for employment.
Our Employment Law Solicitors can assist with all types of claims and where possible on a no win, no fee basis. Naturally, we pride ourselves on providing the best possible service to the highest standards, we offer employment law advice on all problems. Call us on 0800 756 6605 or 020 3923 4777