Running A Business From Home - X-Forces Enterprise
How To Price Your Product Or Service?
July 28, 2022
Building A Greener Business
Building A Greener Business
August 4, 2022

Running A Business From Home

Running a Business From Home
Running A Business From Home

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.

Permissions

To run a business from your home, you may need permission from your:

  • mortgage provider or landlord
  • local planning office - e.g. if you’re planning on making major alterations to your home
  • local council - e.g. if you’re going to get lots of customers or deliveries, you want to advertise outside your home or if you need a licence to run your business

Insurance

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.

Tax Allowances

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.

Business Rates

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.

Health and Safety

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.

Join the Hub, free of charge, today

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…

Comments are closed.

Charity Partners Full Collaborative Partners Full Collaborative Partners Full Collaborative Partners Corporate Supporters and Advocates Government Stakeholders

Sign up to our newsletter

Join our Military in Business® Quarterly to stay in the loop with upcoming training & networking events, Ambassador insights, special guest speakers and trending business articles.