Running a business from home is hardly a new concept but the restrictions brought about by the pandemic saw a boom in the number of start-ups formed and run from their owners' homes...
Running a business from home may sound like the ideal scenario - no additional premises, lower overheads, no commute, but there are steps you must take to ensure you’re doing so legally.
To run a business from your home, you may need permission from your:
You may need permission or separate insurance to run a home business, and you’ll need to check if you have to pay business rates. Home insurance may not cover your stock, computers, or customers visiting your premises. You can find an authorised insurer on the British Insurance Brokers’ Association (BIBA) website.
You can include your business costs in your Self Assessment tax return if you’re a sole trader or part of a business partnership. You can also claim a proportion of the cost of things like council tax, heating, lighting, phone calls and broadband. You can use a flat rate to calculate your simplified allowable expenses. However, you may need to pay Capital Gains Tax on the part of your property you used for your business if you sell your home.
You may have to pay business rates on the part of your property that you use for your business. This depends on whether the Valuation Office Agency (local assessor in Scotland) has given a rateable value to a part of your home. You’ll still have to pay Council Tax on the rest of your property.
To check if you have to pay business rates, contact the VOA on 03000 501 501 (England) 03000 505 505 (Wales). You may qualify for small business rate relief if your property has a rateable value of £12,000 or less.
You’ll need to manage health and safety as you would with any other business, irrespective of where it is based.
You can access the full version of the above, as well as a whole host of other expert advice articles, on the X-Forces Enterprise Knowledge Exchange Hub.
Running a business from home is hardly a new concept but the restrictions brought about by the pandemic saw a boom in the number of start-ups formed and run from their owners’ homes…
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