Thanks to advances in technology, running a business from home has never been easier. Whether you are considering setting up a business from your home or are already running one, it is important to make sure that you meet the relevant requirements:
Check That You’re Covered
It is important to speak to you mortgage provider, as running a business from home may breach your terms.
It is also important to check your home buildings and contents insurance, as these may not cover business items and you may need additional insurance.
Keep The Neighbours Happy
Consider the impact the business will have on your home and neighbours. If you will simply be using a spare room as an office this is not likely to be a problem, however if you are storing stock, especially if it could be hazardous, you may have problems in a residential area and it’s important to make sure you are not breaching Local Authority regulations.
If you will have clients visiting you, also consider the impact on local parking.
Check The Regulations
There are many regulations companies must comply with, and it is important to check your requirements in regard to regulations such as:
- Company secretarial matters
- Health and safety legislation
- Employment law
- PAYE regulations
- Data Protection Act
- No smoking regulations
Tax deductions may be available if you are running a business from home – HMRC guidance is available here.
If you will be extending your house for the business, you may qualify for tax relief on the loan interest, and if your business is VAT registered then you should be able to recover at least part of the tax on the construction.
Bear in mind that if part of your house officially becomes ‘business premises’ you may face Capital Gains Tax issues.
For more information on running a business from home, contact us or call 0800 024 1976.