If you’ve been thinking of taking that step and starting a business from home, you might be unsure of the regulations surrounding such a venture.
For example, do you know that you need permission to work from home from various authorities? Lots of people don’t realise this initially so we’ve put together a quick guide to gaining the correct permission for running a business from home.
Type of property
The permission you need, and who must grant it, depends on the kind of property you’re living in. Other factors are whether you rent the property or own it yourself, and the type of small business you want to run.
- Running a business from a council house
Permissions needed to run a small business from a council house do vary, but it’s likely that you will need written permission from your housing association or local council. You should check with them before you start your business, and find out if they have paperwork that must be filled in.
More and more councils are recognising that people want to be able to set up a business and work from home. Some local authorities are actively encouraging people to start their own businesses and will offer online support.
Look through your tenancy agreement in the first instance to see if there is any wording that prohibits you from running a business from your council house. If there isn’t, this doesn’t mean that there won’t be other permissions required by the council so always check with them.
Consider the type of business you want to start. Some councils might refuse permission if they have reason to believe your chosen business will disturb neighbours, damage their property, or cause a change in the property’s usage.
Examples of businesses that could cause distress to neighbours are any that require delivery vans visiting regularly, clients turning up at your door, or those that require noisy machinery. A good example of the type of business a council is likely to refuse permission for is a car mechanic, as there would be lost of noise, vehicles and coming and going from the property.
It’s also possible that running a business from a council property will have implications for the Council Tax paid and any benefits received, so it’s worth checking on that too.
- Running a business from a rented house
You will need to gain your landlord’s permission to run your business from a rented house. It’s important to check your tenancy agreement, and if it’s not mentioned get it changed when you’ve secured permission.
Landlords aren’t allowed to ‘unreasonably’ withhold or delay consent but they might refuse permission if they believe your business requires a commercial property rather than residential. If they think that the business will cause excessive wear and tear on their property, or that you will annoy the neighbours, they might also refuse to allow it.
- Running a business from a property you own
It’s possible that there may be legal restrictions or ‘restrictive covenants’ in place regarding running a business from your home. These covenants could prohibit certain uses of the property. Contact the Land Registry who hold the title to your property, as this will include details of restrictions. You will also have been given information by your solicitor when you bought the property.
Even if you don’t have any restrictions, there is always the risk that a business could cause problems for your neighbours. This should always be considered when setting up any type of business from home. If your business causes any damage to or stops your neighbours enjoying their properties, then it could mean a trip to court.
Some residential mortgages prohibit the use of your home for a business, so if you have a mortgage you must check its terms. You might need to gain permission from the lender so that you don’t breach the terms of your loan.
You could also need planning permission if you are changing your home, or if your business will cause a ‘material change; in the usage of your property. Contact your local authority should prevent any future problems and getting a Certificate of Proposed Lawful Use or Development could be a good idea, depending on your plans.
Ask your local authority whether you need a licence to run your business and remember that it could also affect your Council Tax. This is because the part of your home that you are running your business from could be liable for business rates.
For expert advice on running a business from home, talk to the team at Turner Little. We can help you cover all bases and get up and running as soon as possible.
About Turner Little
Founded in 1998 in Yorkshire, UK, Turner Little is a specialist UK and offshore company formation, banking and corporate services provider. Our services include company formation, UK and offshore banking, asset protection, credit correction/repair, trademarking and trusts. Other services include Internet services, mail forwarding, wills and probate. Turner Little’s vision is to offer the best possible service, together with market leading products.
For more information, please contact us on 01904 783101.
