Information and marketing services for your small business

Web Site

12, March 2010

Now Let's Get Started

Information and sources of help to set up and run your new business.

Products and services to help you get started and to help you grow and develop your business.

Some of the first steps you need to take:

QUICK LINKS

Register as self-employed

Form a Ltd company

Tax return deadlines and penalties

Business rates valuations

Register for VAT

National minimum wage rates

Protect your brand, invention, or design

Go Green: Guidance on environmental issues

View and bid for public sector contracts up to £100k

Information

First Steps

Running a business from home

RUNNING A BUSINESS FROM HOME

How to run your business from home

What you need to consider if you run a home based business, and some practical tips on how to make working from home work for you.

Who you need to tell if you run your business from home

you need to tell your mortgage provider and your household insurance company that you are running your business from home. If you need additional insurance to cover your business liabilities, get a no-obligation business insurance quote here.
you don’t usually need planning permission but that’s only if the premises remains predominantly residential. If you’re planning some alterations to help accommodate your business you should check with the local planning office first.
if the room you plan to work in is dedicated solely to your business you will need to pay business rates rather than domestic rates on that home business space. This is not necessarily more expensive but it is another cost to administer.
your ‘free from capital gains tax’ status on your primary residence may be compromised if you’re using part of it solely for business use

Tax Allowances for home businesses

If you do choose to run your business from home there are some tax benefits you can claim for proportions of your council tax, heating, lighting etc. HMRC has issued some guidance on calculating allowable expenses for home workers

The advantages of running a small business from home

you don't spend time or money travelling to the office
it’s effectively rent free
you can decorate and equip your office to your own taste
it’s convenient – you have all the tools and equipment you need close at hand
it’s especially beneficial if you have to balance your business with family commitments.

The disadvantages of running a business from home

Although there are advantages to running a small business from home, the disadvantages also need to be taken into account. Consider these carefully to ensure it really is a viable option for you.

home working can be intrusive on your home life
paperwork needs to be contained to your office area
it can be hard to ‘switch off' in the evenings and at the weekend
you can feel isolated and lonely
you won’t necessarily have anyone to bounce new ideas off or resolve business problems with

When you can't run your business from home

Sometimes it’s just not practical or feasible to run your business from your home. Examples of when you will be unable or unwise to run your business from home include:

you live in rented accommodation and it’s against the terms of your tenancy
you need specialist equipment
you are working with hazardous substances
you need a large amount of space
you employ staff who need an permanent base
you are likely to make a lot of noise or a strong smell
you have a lot of deliveries
you have a lot of people visiting you

If running your business from home is not viable see our article on 'Choosing business premises' for other options.
You can also view serviced offices available in your area.

How to cope with running your business from home

If, after taking everything into account, you decide that working from home is the best option for you, here are our top tips on how to make it work:

you need to be very focussed and very self-disciplined
for your own comfort and to maximise productivity you need to ensure you have enough physical space in your home office for the equipment you will need, and enough heat and light to perform your tasks in comfort
make sure your business equipment is fully insured – take out a separate policy if necessary as your home contents insurance is unlikely to cover business equipment in a home office. If you need additional insurance to cover your business liabilities, get a no-obligation business insurance quote here.
install a separate telephone line. A dedicated business telephone line will not only ensure your business calls are answered appropriately but will also make logging your business expenses much easier
'train' your family not to interrupt you while you’re working, especially when you’re on the phone or meeting someone face to face
Consider using a virtual receptionist service to ensure your calls are answered in a professional manner, and so you don't miss any business calls while you're out
ensure any confidential or sensitive information is kept secure and out of sight

How to run your business from home

What you need to consider if you run a home based business, and some practical tips on how to make working from home work for you.

Who you need to tell if you run your business from home

you need to tell your mortgage provider and your household insurance company that you are running your business from home. If you need additional insurance to cover your business liabilities, get a no-obligation business insurance quote here.
you don’t usually need planning permission but that’s only if the premises remains predominantly residential. If you’re planning some alterations to help accommodate your business you should check with the local planning office first.
if the room you plan to work in is dedicated solely to your business you will need to pay business rates rather than domestic rates on that home business space. This is not necessarily more expensive but it is another cost to administer.
your ‘free from capital gains tax’ status on your primary residence may be compromised if you’re using part of it solely for business use

Tax Allowances for home businesses

The advantages of running a small business from home

you don't spend time or money travelling to the office
it’s effectively rent free
you can decorate and equip your office to your own taste
it’s convenient – you have all the tools and equipment you need close at hand
it’s especially beneficial if you have to balance your business with family commitments.

The disadvantages of running a business from home

Although there are advantages to running a small business from home, the disadvantages also need to be taken into account. Consider these carefully to ensure it really is a viable option for you.

home working can be intrusive on your home life
paperwork needs to be contained to your office area
it can be hard to ‘switch off' in the evenings and at the weekend
you can feel isolated and lonely
you won’t necessarily have anyone to bounce new ideas off or resolve business problems with

When you can't run your business from home

Sometimes it’s just not practical or feasible to run your business from your home. Examples of when you will be unable or unwise to run your business from home include:

you live in rented accommodation and it’s against the terms of your tenancy
you need specialist equipment
you are working with hazardous substances
you need a large amount of space
you employ staff who need an permanent base
you are likely to make a lot of noise or a strong smell
you have a lot of deliveries
you have a lot of people visiting you

If running your business from home is not viable see our article on 'Choosing business premises' for other options.
You can also view serviced offices available in your area.

How to cope with running your business from home

If, after taking everything into account, you decide that working from home is the best option for you, here are our top tips on how to make it work:

you need to be very focussed and very self-disciplined
for your own comfort and to maximise productivity you need to ensure you have enough physical space in your home office for the equipment you will need, and enough heat and light to perform your tasks in comfort
make sure your business equipment is fully insured – take out a separate policy if necessary as your home contents insurance is unlikely to cover business equipment in a home office. If you need additional insurance to cover your business liabilities, get a no-obligation business insurance quote here.
install a separate telephone line. A dedicated business telephone line will not only ensure your business calls are answered appropriately but will also make logging your business expenses much easier
'train' your family not to interrupt you while you’re working, especially when you’re on the phone or meeting someone face to face
Consider using a virtual receptionist service to ensure your calls are answered in a professional manner, and so you don't miss any business calls while you're out
ensure any confidential or sensitive information is kept secure and out of sight

Is this what you were looking for? if not let us know

Where would you like to go now?

Start-up basics

Running a business from home

Finding office space

Ltd co or sole trader?

Finance and Accounting

Home

Is this what you were looking for? if not let us know

Where would you like to go now?

Start-up basics

Running a business from home

Finding office space

Ltd co or sole trader?

Finance and Accounting

Home

About Us

Coverzones allows small businesses to compare, choose and buy business insurance from a large panel of commercial insurance providers all in one place. Coverzones is a streamlined online service, passing the savings direct to the customer in the form of highly competitive quotes tailored to each business. READ MORE

Professional Indemnity Insurance

Professional Indemnity insurance protects professional businesses against their legal liability towards third parties for loss or damage arising from their professional negligence or that of their employees. Save time and money by comparing business insurance policies online from major providers. READ MORE

Public Liability Insurance

Public Liability insurance covers your legal liability to pay damages to members of the public for death, bodily injury or damage to their property which occurs as a result of your business activities. Compare and buy insurance policies online from major business insurance companies with Coverzones. READ MORE

Employers Liability Insurance

Employers liability insurance is a legal requirement for all U.K. businesses. It helps businesses meet the cost of compensation for injuries to their employees sustained while at work. Find the right policy for your business by comparing a wide range of quotes from leading insurers online at Coverzones. READ MORE

Builders Insurance

As a bricklayer, joiner or builder, insurance against accidents and injury to the public, your customers and employees, could make the difference between having a business and being out of business. It’s also essential to protect your tools and hired plant, so that expensive kit that is accidentally lost or damaged doesn’t cost you a fortune to replace. Compare builders Insurance quotes with Coverzones. READ MORE

DJ Insurance

DJ insurance is absolutely essential for anyone who performs live in the public domain. Indeed, most gigs and venues will insist that you have a minimum level of Public Liability DJ cover before they will allow you to perform. Compare quotes online with Coverzones. READ MORE