Legal Considerations in Running a business from Home

**kymbi** · 30-09-2009, 05:31 PM

Thanks Lucinda, I will have a look

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

Originally Posted by kymbi

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 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

Originally Posted by Ominicci

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

Originally Posted by Pandanimal

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