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View Full Version : Legal Considerations in Running a business from Home



agent_44
30-09-2009, 08:42 AM
I'm just looking in to this at the moment and have foufn dome information but wondered if anyone had a quick run down of what you need to take into account to run your business from home, eg things like insurance etc, more specific to jewellers?

Solunar Silver Studio
30-09-2009, 09:16 AM
have foufn dome information

I'm sorry...you have what??=:-O

agent_44
30-09-2009, 09:21 AM
Hahaha, I am an idiot sometimes! That's me trying to type when being invaded by a cat, lol! Must read posts before I send them!

I meant 'found some information'. I think I have the most important aspects covered now, just was presented with a huge long list that made me go ooooh myyyyy goddd!

mizgeorge
30-09-2009, 09:25 AM
The most obvious one is insurance - household, public liability and stock, and also any lease considerations if you don't own your home.

agent_44
30-09-2009, 09:28 AM
Yep, got them on my list - thanks George :)

I found out I don't have to pay business rates which is good :) and although me and the OH are officially renting it's his mum's house (they not live in Florida and we're going to stay there for a few years before buying our own place) so we just need her to check the mortgage.

Pandanimal
30-09-2009, 09:29 AM
I need to think about this too.
Hubbie thinks I shouldnt bother because it will put insurance costs up but I have a lot of tools and stock in the house anyway and I do need to think about it don't I?

Emerald
30-09-2009, 09:30 AM
I'm just looking in to this at the moment and have foufn dome information but wondered if anyone had a quick run down of what you need to take into account to run your business from home, eg things like insurance etc, more specific to jewellers?

thought you had a bad cold again :-"

agent_44
30-09-2009, 09:34 AM
I need to think about this too.
Hubbie thinks I shouldnt bother because it will put insurance costs up but I have a lot of tools and stock in the house anyway and I do need to think about it don't I?

Yeah, I figure, if I am going to do this, I am going to do it legally and properly, so it's not really an option, and I would hate if something happened for my exuipment and supplies not to be covered. Starting again from scratch woudl NOT be fun. Although I suspect if I was burgled, the rolling mill wouldn't go ;)


thought you had a bad cold again :-"

lol! :D

Di Sandland
30-09-2009, 09:35 AM
Lucinda, I thought it was something to do with your spy status - that you had fourth dome information. Fourth dome supposedly being some secret society

agent_44
30-09-2009, 09:44 AM
Lucinda, I thought it was something to do with your spy status - that you had fourth dome information. Fourth dome supposedly being some secret society

Yes, yes, that was it and dammit!!! I should be more secretive about my secret societies!!!

bustagasket
30-09-2009, 09:50 AM
Yes, yes, that was it and dammit!!! I should be more secretive about my secret societies!!!

yes indeed you should , i mean if a secret for a secret society isnt kept a secret by the secret agents then those of us that arent secret agents will find out the secrets and they will be secrets no longer! (secretly i think secrets are secretly exciting, but i guess i like secrets!)

mizgeorge
30-09-2009, 09:59 AM
Lucinda, some insurers are better than others for this. Try the NFU Mutual - they're experts in dealing with small businesses and homeworkers, and the premiums are very competitive. There are some good threads about this over on FHF.

agent_44
30-09-2009, 10:00 AM
OK George thanks. I was on FHF before the whole runanway husband thing and was thinking it was about time I paid a visit!

agent_44
30-09-2009, 10:01 AM
That's a point, should expect to be taking a seperate contents insurance for my business to the home insurance, or looking for a combined policy?

Jayne
30-09-2009, 03:43 PM
does anyone know how household insurance premiums are affected when you inform them that you're running a business from home? In particular, a business that involves fierce soldery firey practices??

J x

agent_44
30-09-2009, 04:38 PM
Hehe :) Well my research today has shown that some places will in sure you but not for work equipment or resultant damage/accidents, some wont insure you at all and some will if you buy a bolt on policy. Or if it's the first case you can get an additional policy from somewhere else. You need to call your insurer and enquire really, then start looking around if you need more or different cover.

Petal
30-09-2009, 04:47 PM
If you happen to do market stalls, then you'll need insurance anyway - and the National market Traders Federation might do something?? Give them a try.

Boo
30-09-2009, 05:00 PM
I've been self employed and worked from home for over 20 years and found that trying to combine specialist business insurance with home contents proved to be either impossible, or very expensive. My home contents has a section for a home office which covers my computer, laptop, printer and files etc. but more specialist equipment, like my camera gear is insured separately. I found that as soon as I use my camera for anything professional, it is no longer covered by my contents policy, which only covers it for personal use.

So I have 3 policies now; home contents with a home office and a semi-pro photographers UK policy which coves my gear, liability, hire of gear after damage or theft etc., then a separate jewellery policy which covers my equipment, stock, money and stock in transit (I pay extra for stock in a parked car etc.), liability etc.

I'd love to have them all together, but the prices quoted were preposterous.

kymbi
30-09-2009, 05:25 PM
My home contents cover my office equipment, and I have separate public and product liability insurance, but I really need to get my jewellery equipment and stock covered - I had enough trouble getting my car insured so I've been putting it off. Can I ask where you got your jewellery equipment and stock cover from Boo?

agent_44
30-09-2009, 05:27 PM
I think I an Wallace does a decent policy for this at Ian W. Wallace, home of the Craft Insurance scheme for individual craftsmen and craft groups and clubs in the UK and Republic of Ireland. (http://www.craftinsurance.co.uk/). I have used him before for liability insurance and was pleased.

kymbi
30-09-2009, 05:31 PM
Thanks Lucinda, I will have a look :Y:

I have a feeling that when I checked with Ian Wallace before, the stock & equipment cover is an add-on to the public liability insurance and can't be taken as a stand-alone. I already use NMTF for my public and product liability and don't really want to move away from them as I mainly trade at markets and their car insurance covers me for market trading, which many others don't. I will check with Ian Wallace and report back.

Di Sandland
30-09-2009, 05:55 PM
ditto to Ian Wallace. They're very helpful too

Boo
30-09-2009, 06:25 PM
Can I ask where you got your jewellery equipment and stock cover from Boo?
I'm not at home at the moment, so can't just grab my policy to give you the details, but checking my bank statement, as I just renewed it, it is with Insurance Choice, they're the broker, not the insurer: Insurance Choice, Insurance Broker, insurance company, insurance, broker, quotes, leamington spa, leamington, UK (http://www.insurancechoice.co.uk) I paid £92, but I have a few extras included, like cover for stock in a parked car.

kymbi
30-09-2009, 06:29 PM
That's great Boo, thank you :)

Ominicci
01-10-2009, 12:12 AM
Having done an HMRC Self Employment Workshop recently (free when you register as self employed), there was also mention made of NOT using a room in your house SOLELY for your self employment as it meant you may be liable for Capital Gains Tax when you sell the house. The room should be used by and be available to the rest of the household so that it is shown to be part of your living arrangements. (I said previously that I would do a write up about using part of your house for self employment - I still will, but need a bit of time to type it up!). My craft room is for me only, but am going to get around this by having a bookcase full of everyday books (a library, how posh!) and all the household filing etc in there too. They would only ever know if they chose to 'spot check' you and your accounts, but you never know....I'm paranoid that I'll be the one...!

Pandanimal
01-10-2009, 08:50 AM
I have a couple of questions that I think go along with this thread.
Firstly, if I am self employed/working from home does it effect my council tax or mortgage?
Second, if I do the occasional jewellery party either in my home or some one else's do I need public liability or something similar?
I really feel I need to cover every thing. I have the forms for registering self employed sitting on the table beside me right now!
And I feel terrified!

agent_44
01-10-2009, 10:02 AM
Having done an HMRC Self Employment Workshop recently (free when you register as self employed), there was also mention made of NOT using a room in your house SOLELY for your self employment as it meant you may be liable for Capital Gains Tax when you sell the house. The room should be used by and be available to the rest of the household so that it is shown to be part of your living arrangements. (I said previously that I would do a write up about using part of your house for self employment - I still will, but need a bit of time to type it up!). My craft room is for me only, but am going to get around this by having a bookcase full of everyday books (a library, how posh!) and all the household filing etc in there too. They would only ever know if they chose to 'spot check' you and your accounts, but you never know....I'm paranoid that I'll be the one...!

This also means you don't have to pay business rates I discovered yesterday. If a part of the house is used soley for the business, then you are legally required to make contributions to the local authority in the form of business rates. But if the space/room is also used for any domestic purposes you are exempt :Y:


I have a couple of questions that I think go along with this thread.
Firstly, if I am self employed/working from home does it effect my council tax or mortgage?
Second, if I do the occasional jewellery party either in my home or some one else's do I need public liability or something similar?
I really feel I need to cover every thing. I have the forms for registering self employed sitting on the table beside me right now!
And I feel terrified!

Only if your work areas idf for your business only in terms of Capital Gains Tax as described by Nikki and Business Rates as I described above. You should probably check your mortgage to check there are no issues with you running a business from home.

You should have public liability if you are running jewellery parties, though this isn't very expensive. You can get £1 million of cover from around £67 through Ian Wallace.

Pandanimal
01-10-2009, 11:28 AM
I havn't done any parties yet but only want to do 4 or 5 a year and maybe have an open studio week or something.
Good to hear about the council tax bit though. That will make Hubbie happy as my studio is hall way between back door, kitchen, shower room, utility and front hall!
I have just done a stock check on my equiptment and materials, not including finished items. and it comes to nearly 3k worth of stuff.
I almost fell on the floor.
I never wanted to be a buisness woman. I just want to make and sell my beautiful things.

agent_44
01-10-2009, 11:44 AM
It's shocking when you add everything up isn't it! I'm happy to be a businesswoman I guess, I just need to get to grips with that all important Sales and Marketing bit, which scars me immensley!

mochiandmocha
21-10-2009, 09:23 AM
Guys...it feels just great to read all your comments and see we're not the only ones who've been putting off all the legal aspects because we're absolutely dreading it (like finding out we've been illegal all along and other nice suprises we might have).

So anyway, thank you all!

PS: We're officially working on our jewellery full-time so we're in the middle of sorting out all that stuff :(|

jetlag
21-10-2009, 10:15 AM
Having done an HMRC Self Employment Workshop recently (free when you register as self employed), there was also mention made of NOT using a room in your house SOLELY for your self employment as it meant you may be liable for Capital Gains Tax when you sell the house.

You'd also be liable for business rates on that room.


Edit: oops, already been mentioned *blush*

Ominicci
21-10-2009, 09:46 PM
Blame it on the 'Jetlag' lol!