Home-based Business: Everything You Need to Know

People have been running businesses from the comfort of their homes for many years, despite the fact that working from home is a relatively new notion for many people.

Many businesses were started from the comfort of people’s homes during the epidemic, so if you’re considering starting a business from home, there are a few steps you should take to guarantee you’re doing it in a legal and ethical manner.

Do You Need Permission to Set Up a Business From Home?

There are numerous advantages to running a business from home, including the ability to work flexible hours without having to commute to an office, a better work/life balance, and the elimination of the need to pay for office space and other overhead. It is possible, however, that you will need to obtain permission to run your business from either your local council, your mortgage advisor, or the local planning office if you plan to make changes to your home or if the nature of the business has an impact on your home or on the neighbours’ property.

The likelihood of requiring planning approval for operating a company from your house is low if your operation will not create any inconvenience or be evident to your neighbours or anyone else outside the property.

Planning clearance is required if your home-based business falls into one of the following categories:

  • The number of visitors to your home (such as business partners, employees or clients) has increased significantly.
  • A sign in front of your building promoting your company.
  • Placement of items linked to the business in a location other than the building
  • Remodeling of your home’s structure in a major way.

What Insurance Do I Need to Run a Home-based Business?

Most home and contents insurance policies enhanced their coverage during the pandemic due to the fact that many people worked from home during this time period. You will not be covered under your current policy while conducting a home-based business in any form, however, as normalcy returns to the United Kingdom.

Having clients or customers visit your home for business purposes necessitates the purchase of public liability insurance. If you have employees working on your property, you will also require employer’s liability insurance. Business insurance is particularly essential if you are storing valuable equipment, records, or stock.

It is, of course, critical to consult with your insurance carrier to determine the type of coverage you will require. Adrian Flux can provide you with affordable home business insurance that is customised to your specific requirements.

Can You Run a Business From a Council House?

If you want to start a business from your council home or if you want to register a business, you’ll need written approval from your local council or housing association. Check your tenancy agreement as well because it may contain legislation that prohibits you from operating a business from your residence.

If your local council determines that your business will cause disturbances to your neighbors or will cause damage to your property, they will decide whether or not to approve your permit.

An additional consideration is that the nature of your business may have an impact on the amount of council tax you pay.

Can I Run a Business From My Shed?

It is completely legal to conduct a business out of your shed, but you will need to follow the same legal procedures as you would if the business were being performed from the interior of your residence.

In the same way as previously, you will need to consider if your business would create a nuisance for your neighbors or whether it will cause a significant change in the use of your property. If you’re operating a business from your home, you may need to obtain planning permission or a business license if your operation grows.

Can I Run a Business From My Garage?

The fact that you can run a business out of your garage does not exclude you from doing so; but, depending on the type of property you have, as we’ve discussed above, you may need to obtain permission first.

In the same way as previously, you will need to consider if your business would create a nuisance for your neighbors or whether it will cause a significant change in the use of your property. If you’re operating a business from your home, you may need to obtain planning permission or a business license if your operation grows.

Does Running a Business From Home Affect Your Mortgage?

It is best to check your mortgage conditions before making any significant alterations to your home, just as you would before making any other improvements to your home.

Since exceeding the terms of your mortgage loan could result in serious penalties, such as making the loan immediately repayable, you may need to obtain authorization from your mortgage lender beforehand.

You may also require planning approval if you are making structural or material improvements to your home, or if the operation of your business will result in structural or material changes to your home or the way it is used.

Depending on the type of business you operate, you may be required to obtain a license from your local government. Also keep in mind that running a business from home may have an impact on your council tax because the area of your home where you’re conducting your business may be responsible for business rates, so keep this in mind. More information is available from the Valuation Office Agency.

Check Your Home-based Business Insurance

The top Insurance Group, one of the leading specialist house insurance brokers in the United Kingdom, checks quotes from over 30 schemes to find the most competitive buildings and contents insurance for any case, including those who run their own business from home.

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