Everything you need to know about running a business from home

For many, working from home is a relatively new concept, but people have been running businesses from the comfort of their house for many years. 

During the pandemic many businesses were formed from the comfort of people’s homes, so if you’re looking to set up a business from home, there are steps you need to take to ensure you’re doing it legally. 

Do you need permission to set up a business from home?

Running a business from home comes with a plethora of benefits, including being able to work flexible hours without having to go into an office, giving you a better work/life balance and eliminating the cost of having to pay for office space. However, you may need to gain permission to run your business at home from either your local council, your mortgage advisor, or local planning office if you’re looking to make changes to your property, should your business affect your home or neighbours. 

If running a business from your home is unlikely to cause any disruption or be noticeable to your neighbours or anyone outside the property, it is unlikely that you will need planning permission.

You will however need planning permission if your business meets any of the following criteria:

Noticeable increase in people coming to your home such as business partners, employees or clients
A sign outside your property advertising the business
Storing things related to the business outside of the property
Significant structural changes to your home

What insurance do I need to run a business from home?

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During the pandemic, most home and contents insurance policies extended their cover due to the nature of people working from home, however as the UK returns to normality, your current policy will not cover you if you met any of the above criteria while creating a business from home.

If you have clients or customers visiting your home for work purposes you will need public liability insurance, along with employer’s liability cover if you have employees working on your property. Business cover is also vital if you are storing important equipment, documents or stock. 

Of course it is important to check with your insurance provider as to which cover you will need. At Adrian Flux, we can offer affordable home business insurance that’s tailored to your needs.

Can you run a business from a council house?

If you’re planning on setting up a business from your council house or need to register one, you’ll need written permission from your local council or housing association in order to do so. You will also need to check your tenancy agreement as it may contain legislation that prevents you from running a business at home.  

It is then up to the discretion of your local council as to whether they believe your business will disturb your neighbours or damage your property. 

Another thing to note, is your business may have implications for the amount of council tax you pay. 

Can I run a business from my shed?

It is perfectly legal to run a business from your shed, but you will need to go through the same legal steps as if the business were being operated from inside your home. 

As before, you will need to think about whether your business will cause a nuisance to your neighbours or cause a material change in the usage of your property. If you’re running a business from home, planning permission or a licence may be needed if it expands.

Can I run a business from my garage?

There isn’t necessarily anything stopping you from running a business from your garage, but you’ll need to ask permission depending on your type of property, as we’ve outlined above.

As before, you will need to think about whether your business will cause a nuisance to your neighbours or cause a material change in the usage of your property. If you’re running a business from home, planning permission or a licence may be needed if it expands.

Does running a business from home affect your mortgage? 

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Like any change in your home, it is best to check your mortgage terms before making any radical changes to your property. 

You may need permission from your mortgage lender, as breaching the terms of your loan could result in severe consequences, such as making the loan repayable immediately.

You may also need planning permission if you’re making changes to your home, or if running your business will cause structural or material change in your property, or how it is used. 

Depending on the type of business you’re running, you may need a licence from your local authority. And remember that running a business from home may affect your council tax, because the part of your home you’re running a business from may be liable for business rates. You can find out more at the Valuation Office Agency.

Check your home business insurance

As one of the leading specialist home insurance brokers in the UK, Adrian Flux compares quotes from over 30 schemes to source competitive buildings and contents insurance for any situation, including those who run a business from home. Call us on 0333 254 6800 for a quote.