Setting up small business from home-implications?

laura2481

Hi everybody:hello:
I'm currently looking at setting up a small (tiny) business from my home. It is mostly a craft/hobby and I'm going to try selling a few items at craft fairs and the like.. and also the odd few bits and pieces on Ebay..maybe eventually my own site.

It will be very small grossing- certainly not enough to need VAT registration, and I should be able to get the Small Business allowance to need not to pay NI on this secoond income (I work full time so pay Nat Ins through employer)

Anyway- does anybody know if this kind of small business in your home impacts on your mortgage agreement or insurance? In fact any advice from anybody who has set up this kind of small business from home would be extremely useful!

Thanks
Laura

tameem

i think you have good idea and go on

laura2481

tameem wrote: »

i think you have good idea and go on

Thanks.

Does anyone have any idea about implications in regards to mortgage and buildings/contents insurance?

Ta

PlutoinCapricorn

It helps to think around the issues, it is not unlike the"no pets" rule!

How will you get your materials? Will this involve delivery vans? Will a steady stream of customers be visiting you? Will you be holding huge amounts of stock?
Will you be making a lot of noise?

If it is similar to a hobby, then I don't see how it could affect the mortgage or even need different insurance. There seem to be no health & safety or hygiene issues, you are not running a playgroup.

laura2481

PlutoinCapricorn wrote: »

It helps to think around the issues, it is not unlike the"no pets" rule!

How will you get your materials? Will this involve delivery vans? Will a steady stream of customers be visiting you? Will you be holding huge amounts of stock?
Will you be making a lot of noise?

If it is similar to a hobby, then I don't see how it could affect the mortgage or even need different insurance. There seem to be no health & safety or hygiene issues, you are not running a playgroup.

How will you get your materials? Will this involve delivery vans? Not very often, and not especially large vans or anything. Just royal mail and poss courier sized vans

Will a steady stream of customers be visiting you? Nope, no cutomers

Will you be holding huge amounts of stock? Not really, nothing more than fit in a couple of boxes in my spare room. Which is filled with boxes at the best of time

Will you be making a lot of noise? Nope- a very quiet hobby. No noise what so ever


If it is similar to a hobby, then I don't see how it could affect the mortgage or even need different insurance. That's what I was thinking- I'm not going to be doing anything I wouldn't normally use my home for. No extra specialist expensive equipment or anything like that. I think I should be ok, as it's not a business as such- more a hobby where I sell stuff.

I know I'm going to need public liability insurance as I will be making toiletries/soaps etc so you need that in case anyone does anything daft like eat a bar of soap and try to sue you, besides having safety assessments to prove you're not going to make anything toxic but I was quite worried that it would also impact on my mortgage etc.

PlutoinCapricorn

It seems that you have thought everything through, and are in the clear.
People make soap and candles for themselves all the time. You will not be inconveniencing anyone around you at all.

It isn't the sort of business that would entail extra council tax, insurance and a major change of useage of your residence.

https://www.businesslink.gov.uk offers free advice, information and courses. You could double check with them.

laura2481

PlutoinCapricorn wrote: »

It seems that you have thought everything through, and are in the clear.
People make soap and candles for themselves all the time. You will not be inconveniencing anyone around you at all.

It isn't the sort of business that would entail extra council tax, insurance and a major change of useage of your residence.

www.businesslink.gov.uk offers free advice, information and courses. You could double check with them.

Thanks for that

Dizzie77

I would let your insurance company know though - just in case.
I started a small business from home and I only run an admin base from here, but still told the insurance company.
It hasn't changed my premium at all - but at least if anything ever happens, the insurance company can't say that they didn't cover me for working at home...!!

Good Luck though - and lots of craft fairs coming up for Christmas..!