To run a business from your home, you may need permission from your mortgage provider or landlord, your local planning office – for example if you’re planning on making major alterations to your home or your local council – for example 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.
You will also need insurance for your business. Home insurance may not cover your business assets such as stock and computers or indeed customers visiting your premises.
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 claim a proportion of the cost of things like council tax, heating, lighting, phone calls and broadband or you can use a flat rate to calculate your simplified allowable expenses.
If you sell your home, you may need to pay Capital Gains Tax on the part of your property you used for your business.
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 (VOA) has given a rateable value to a part of your home. To check if you have to pay business rates, contact the VOA. You’ll still have to pay Council Tax on the rest of your property.
You’ll need to manage health and safety as you would with any other business.
For more advice on setting up a business from home please get in contact.
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