What do I need to know about running a business from home?
Mar 7, 2017
If you’ve decided to set up a business from home, there are a few things you’ll need to consider first.
Before you start, check if you need to inform your mortgage provider if you own the property you’ll be working from or, if you are renting, check with your landlord first.
Depending on the type of business you’ll be running, you may need a licence. This can be obtained from your local council, so to avoid doubt, just check with them before you start.
Insurance should be your next consideration, particularly if you are storing lots of stock at your property or if you have customers coming to your house. Your home insurance will not cover you for business activities so make sure that you get adequate cover to meet the needs of your business.
Business rates may be applicable to you, and it could be that a rateable value has been given to part of your home. You can check with the Valuation Office Agency to see if business rates are applicable. You may get small business rate relief if the rateable value assigned to your property is less than £12,000 (this rate is going up to £15,000 from April 2017). Remember though, council tax is still payable on the rest of your property.
You’ll need to manage risk and consider health and safety as any other business would. There are clear guidelines about the health and safety responsibilities of businesses at the HSE (Health and Safety Executive) website. Make sure you’ve read and understood the requirements for your business and that you have adequate insurance in place if you have employees, workers or customers visiting your property.
Finally, you can claim back your business costs when you make your Self-Assessment Tax Return. This applies if you are a partner in a business or a sole trader. When you run your business from home, you can allocate part of the cost of running your home to your business. Talk to your book keeper or accountant about this or use the simplified expenses model, you can find out more at Gov.UK.
The structure of your business is also important, but isn’t linked to whether you run it from home or not. You should structure your business so that it’s the most tax efficient for you, so seek advice about this before deciding on the structure.
Barker, Son and Isherwood can help you to set up your business from home. From registering your company to completing all the necessary paperwork for your start-up. Whatever your small business needs, come and talk to our business team. Call us now on 01264 353411, via email: firstname.lastname@example.org or contact us via our free, no obligation online enquiry form and we will help you.
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