From Lawpack's Self Employment Kit.
Let's look at the practicalities. First, if you are a home owner with a mortgage, check with your lender that there is nothing in your mortgage agreement that prevents you from working from home; there may be some regulations you need to meet; likewise if you are a tenant.
Next, check your household insurance. Are there any clauses relating to homeworking? Do you need to increase your cover for business equipment or stock? If you intend to have customers visiting your home office, there are health and safety considerations.
It's also recommended that a 'risk assessment' be carried out. It's a straightforward practice and you can get full guidance from the Health & Safety Executive at www.hse.gov.uk. This site is full of very useful information and whilst much of it relates to companies employing many people, there is useful guidance, help and advice for the one-man-band start-up business.
Another factor that you may have to consider is one of planning permission. If running your business from home affects your neighbours or the residential area (such as noise, number of visitors, increased traffic, extra parking spaces), then you need to discuss this with your local authority.
Separating business from home life
It's really important to keep your business life separate from your home life. Arrange for a dedicated area from which to work; a spare bedroom is ideal. Avoid working from the kitchen table or dining room. If you have to share your workspace with your family, then ensure that at the end of the day your work activities are filed away, out of sight.
It's going to be very useful to install a business telephone line. Firstly, it enables you to keep business calls separate from personal calls and therefore makes it easier for you to claim tax relief on business telephone costs. Secondly, it avoids any younger members of the family using the phone during the business day.
Law stated as at 1 September, 2006
