For a long time, remote working was something that people would only do as a last resort. However, over the past two years, we have really changed the way in which we work with remote working becoming commonplace, even if you work for an employer. If you work for yourself, then you will have known of these benefits long before remote working became the norm. Not only that, but you may have looked to expand your business as you work from home, as there are more and more opportunities available to you that can make a difference.
If you want to set up a business from home, then there are definitely some different things to consider. You will want to make sure that you are doing it all in the right way, and getting the kind of help that you need. For example, if you have decided to start shipping your products out overseas, then the help of a compliant customs broker might be just what you need in order to avoid problems and reduce the risk of fines and unhappy customers. So with all of that in mind, here are some of the things that you can do to make sure that you’re working from home and starting your business in the right way.
Who do you need permission from to set up a business from home?
Running a business from home can work so well for many people as in many instances, you don’t need to have a separate space to work out of, and there are a range of benefits to working in this way. But who do you need to get permission from in order to make this work for you? If you rent your property, then the landlord is something to check with, as it may be against their terms. You may also need to check with a mortgage provider if you are a homeowner, as that could be something in their terms too.
However, you don’t need permission from any legal authority to set up a business from home, as long as you are set up to take money, such as creating a company, or are registered as self-employed for tax purposes. If your business will involve people coming in and out of your home, then you should make neighbors aware, and perhaps local authorities who may need to advise you on steps to prevent becoming a nuisance to neighbors.
What insurance will you need?
All businesses need to have insurance, and although you might have insurance for your home and the contents, it is unlikely to cover what would happen if your inventory was to be stolen from the home, for example. If you are going to be storing a lot of stock or providing a service from your premises, then you need to make sure that you are covered by the right kind of insurance. You don’t want to injure a customer on your premises for example, and not be able to cover costs if they decide to sue you. If you have any employees, even if they don’t work with you in your home and they also work from home, then you need to think about getting employer’s liability insurance.
How does having a business from home impact paying taxes?
If you use your home as a place of business as well as a home, then there are some things to consider. For example, if the home is only used for business purposes and nothing else, then you will have to add on business tax rates to the part of the property that is used (if you have a salon or a shop as part of the home, for example). Another thing to think about is that you might have to pay Capital Gains Tax on part of the home if you were to sell the property in the future. Again, this would be if you have a separate office, salon, or shop that is used for clients and customers, then you may need to pay tax on top of the sale price when it comes to selling. This won’t be true if you simply work from home and run your business from a laptop in the kitchen.
Running a business from home can be something that can be very rewarding and help to give a work and life balance that so many people crave. However, you need to make sure that you are getting the balance right, and getting the help that you need and being aware of the law, so that you don’t run into any problems.
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