Use of home for small business

fluffpot

Hi everyone
My partner is thinking about setting up a new business based at home. This would require our spare bedroom to be used for storage of items. Am I right in thinking that this would mean that he would need to pay business rates rather than council tax on this room? In practice what does this mean? Are there any other implications of starting the business at home? I understand about insurance, but anything else?

Obviously want to keep costs down as much as possible at start, and as we have the space, doing this at home seems like good option.

Thanks

Fluff

PS Have also posted this in small business forum

edwara

Hi

Not sure about the rates but you will probably have to tell your mortgage company if you own your house. they often have clauses about businesses being run from your home.

Good luck

Slinky

Providing you are not using your spare bedroom exclusively for business purposes, you shouldn't have a problem with business rates instead of council tax.

I have wardrobes with clothes in and files of business paperwork in the room I use mainly for my business. However I also use a laptop in various other rooms of the house for business purposes. Mix the room use up a bit and you should be OK.

olly300

No you don't have to pay business rates.

However I would check you home contents insurance as some of them don't insure you for any business/professional use at all, others will insure you only for clerical use with no visitors on the premises rated to business, and a small amount will insure you for business stock and visitors.

fluffpot

Thanks for replies.

The room will be used soley for storage, and we won't be able to fit anything else in there!

I was also reading elsewhere on the net that local councils aren't hot on enforcing the business rates where the activity is low key but that if he had customers coming to house, deliveries causing traffic problems, huge amounts of waste going to domestic refuse, then they would look into this.

How true is this?

He has done some prelim checks with insurer and mortgage and they seem happy as the house is not going to be visited by customers and stock can be covered by existing insurance (yes I was amazed too!)

fengirl_2

There is an item on when business rates are charged here:
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073792390