Single Person Home Business
Single Person Home Business
Author
Discussion

GT89

Original Poster:

411 posts

143 months

Saturday 25th July 2020
quotequote all
Does or has anyone set up a home run business.

Im looking to do so run out of an outbuilding we have, but I'm struggling to find out what hoops I need to jump through.

I've phoned my local council who were no help not knowing themselves other than planning if I was altering structal parts of the building (I am not)

My mortgage provider also has been of little to no use.

I appreciate this is a open ended question without all the details but any advise would be appreciated.

In essence a single person beauty salon, in an outbuilding, no disruption to neighbours, no advertising boards etc, 1 client at a time via appointment only.

MitchT

17,150 posts

239 months

Saturday 25th July 2020
quotequote all
You'll probably get more useful information from someone who's already in business themself doing something similar. May be worth looking online and finding someone to ask who's a considerable distance away as they won't see you as competition and will probably be more likely to help. I've heard that having a space dedicated solely to a business activity can result in that space incurring business rates, so it may be worth making sure the space has dual use, the other use being something pertaining to the household and not the business.

Ham_and_Jam

3,720 posts

127 months

Saturday 25th July 2020
quotequote all
My hairdresser runs his business from a converted garage. He applied for change of use from residential to a business for that part of his property from the local council.

He pays zero business rates as he claims SBRR. The big benefit was he also got the £10k grant during lockdown.

So depending on how busy you get, you will probably need change of use.

You will definitely need to get business insurance, and inform your mortgage provider.

More info here-

https://www.gov.uk/run-business-from-home

clockworks

7,724 posts

175 months

Saturday 25th July 2020
quotequote all
I use the upstairs bedrooms (dormer bungalow) for my work from home business.

No mortgage, so that's not a problem for me.
I do have business insurance - public liability, goods in transit, etc - which costs about £300 a year.

To keep things simple, I just claim the fixed "home office" allowance from HMRC, no business rates, no possibility of tax implications if I sell the house.

Next door neighbour does beauty treatments from home, always at least one extra car parked outside during working hours.
Chap over the road is a sole trader builder (keeps stuff in his garage), someone else around the corner does cake making, chap on the end has lots of fish delivery vans calling, so must be running a business of some kind.

No problems with the local authority, and nobody complains.

GT89

Original Poster:

411 posts

143 months

Saturday 25th July 2020
quotequote all
Thanks for the replies, because of some of the treatments it requires a licence that covers essentially minor skin punctures, that's one thing I am certain of so anything other than all above board wont really work.

Interference with neighbours isn't an issue as there aren't any as such, people coming here would only be if they knew it was there, it's not in a housing estate type location.


Marcellus

7,204 posts

249 months

Saturday 25th July 2020
quotequote all
I don’t think that there are too many hurdles, you’ll need public liability insurance and possibly some sort of personal liability insurance too but wouldn’t you need that anyway if your in the beauty sector?

GT89

Original Poster:

411 posts

143 months

Saturday 25th July 2020
quotequote all
Yes, so far I know of the insurances required along with the licence.
Have to sort out waste disposal etc.
My mortgage company are no use the same as the district council, it's not exactly untrodden ground so I'm not sure why they are both so useless

Marcellus

7,204 posts

249 months

Saturday 25th July 2020
quotequote all
GT89 said:
Yes, so far I know of the insurances required along with the licence.
Have to sort out waste disposal etc.
My mortgage company are no use the same as the district council, it's not exactly untrodden ground so I'm not sure why they are both so useless
I think as long as you’re not permanently changing the use of a room then there’s no need for planning etc.

Chrisgr31

14,286 posts

285 months

Saturday 25th July 2020
quotequote all
Business rates will in theory apply to any part of the property that is exclusively used for the business, however its likely that Small Business Rate Relief will apply so no rates will actually be payable. However for the property to be assessed someone has to tell the VO its there! You have no obligation to tell the VO.

If it is assessed for business rates I dont know if this creates a Capital Gains tax issue on sale?

If using a room as an office etc it should always be dual purpose, so contain domestic files or a bed or something at the same time!

GT89

Original Poster:

411 posts

143 months

Tuesday 28th July 2020
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I have discussed with various people in a similar situation, not one has advised their mortgage company.
Ive heard that not many main stream mortgage companies allows businesses to be run from home, so it appears to be an unwritten thing that people just don't

Council got back to me with the planning portal, I've read through and can't see any issues that would nesesitate the use of planning