One thing we have learned during the COVID pandemic is that many of us can work from home very effectively. And as a result, there has been a surge in the number of people wanting to use their homes as their business premises.
Converting your home into a business premise comes with several advantages. For starters, you will save on costs such as rent and rates. And, you will also have a lot more control over your working environment.
But it is not all plain sailing. There are also some disadvantages that you need to be aware of. This post will look at some things you need to consider before using your home as your business premises.
5 Things to Consider Use Your Home as Your Business Premises
1. Understand the Difference Between Converting Your Home and Working From Home
You first need to understand the difference between converting your home into a business premise and simply working as remote worker in home. If you are running a business from your home, you will need to make some changes to accommodate this.
For example, you may need to set up a dedicated workspace, have separate phone lines and internet connections, and ensure that your home insurance covers you for business activities.
2. Think About the Legal Aspect
There are also several legal aspects that you need to consider. For example, you will need to check with your local authority to see if you need to apply for any planning permission or licenses.
You will also need to ensure that your business complies with all the relevant health and safety regulations. And, if you have staff working for you, you will need to comply with employment law.
Zoning regulations are another thing to consider. These regulations can vary from one area to another, so it is important to check what the rules are in your area.
3. Consider the Financial Implications
There are also several financial implications that you need to consider. For example, you will need to ensure that you are still eligible for any tax breaks or allowances to which you are entitled.
You will also need to think about how your business will be affected by your home insurance policy. And, if you have a mortgage on your property, you will need to check with your lender to see if they have any restrictions on using your property for business purposes.
4. Think About the Practical Implications
You will need to think about how your business will impact your family life. Additionally, you need to take into account noise levels, parking, and deliveries. And you will need to make sure that you have enough space to accommodate your business.
If you have products you need to package, ship, and store, you will need to ensure that you have the appropriate storage space. If you choose to work with top quality custom packaging from StickerYou, you need to factor in the storage space for your packaging materials and the space required to package and ship your products.
Additionally, you’ll need to consider where customers will pick up their orders from if you offer local delivery or in-store pickup.
5. Consider the Tax Implications
If you use your home as your business premises, you will need to let HMRC know. You will also need to think about how your business will be taxed.
For example, you must pay income tax on your profits if registered as a sole trader. But, if you set up a limited company, you should pay corporation tax on your profits.
In summary, converting your home into a business premise can be a great way to save money and have more control over your working environment. But, you also need to consider several things before making the switch. Once you are sure that you can handle the implications, you can enjoy the benefits.
