Starting up at home

[enjo]

Hi All,

I am currently employed full time as a Product Designer.
I would like to start up a design consultancy in my spare time at home with a view to one day being fully self employed.

There are a few things that I constantly use as excuses not to do this! The first is tax, am I right in thinking that I would need to move to self assessment and that this is a one way street?

The other is my current mortgage. Buried in the small print there is a sentence about not running a business from the property. I know many people do run business from home, is it something I need to talk to the mortgage provider (HSBC) or even home insurance about?

Many thanks.

[enjo]

Thanks for the reply - The plan is quite literally back bedroom! This is where my desk top currently resides. I would be thinking of adding a small 3D printer (makerbot replicator 2 or similar).
The next issue would be funding the software and printer!

[enjo]

Thanks Eric, that makes it a little easier.

I am pretty sure that the easiest way to move forward would be to register as a sole trader. Would there be any real benefit for me to set up as limited company when it comes to things like registering patents?

If I were to come up with some earth shattering product that everyone must have I wouldn't mind being bought out by google/facebook/mircosoft etc for many millions, in this regard would it be a good idea to register the IP to the company?

[enjo]

Pot Bellied Fool said:

Something else to consider is a virtual office address (quite a few folk I know use this virtual office, gives you some idea of costs anyway) as it gives anyone doing a quick search on you more confidence than if you're obviously home-based. Depends on the type of business though.

I should get round to doing it myself to be honest but I generally build a relationship with prospective clients first so by then it's not as critical. Depends how you're going to be drumming up work. If tender based then I believe a lot of people find it really helpfull to appear to have 'proper' premises, less important if it's B2C.

Thanks - I'll look into this although I'm not sure about having a Merseyside address as I may need to meet with clients - I'd much rather them know where I am in the UK.

[enjo]

Eric Mc said:

Patent regulations is something I know nothing about.

If you are only trading at a very small, part time level, I would not go to the trouble of setting up a limited company as the additional bureaucracy etc is not worth the hassle - and the cost.

Thanks again. Would it be easy to switch to a limited company if things go well?

[enjo]

Thanks PBF, will have a look around.

Siscar said:

It's worth having a look at your employment contract to see if you would have a problem there.

Nothing in my contract but I will be running by them first. If I do go down the 3D printer route they could be my main customer!

Thanks.