Running a legitimate and legal workshop from home.

[tedmagnum]

I'm VERY lucky to have exclusive use of a large brick built and detached double garage/workshop on the side of my mum's bungalow.

I've got it set up as a pretty nice workshop.

32 Amp supply, wood burning stove, water supply, large roller doors etc. It's a proper little man cave and it's been a great workshop for my motorcycle projects etc.

I have aspirations of going self employed with some fabrication and motorcycle work.

I was wondering if anyone has any information about running a business like this from 'home'..

Insurance , health & safety, tax etc etc etc !!

Many thanks in advance.

Ted

 

[cumbriasteve]

The council is the best place for advice.

If there is a mortgage on the property, that is your next advice route and finally your local HMRC office who you will find helpful for small business advice.

It can be done of course but there is a lot to it and there can be a lot of issues if it's a residential area

 

[brightspark]

I'm VERY lucky to have exclusive use of a large brick built and detached double garage/workshop on the side of my mum's bungalow.

I've got it set up as a pretty nice workshop.

32 Amp supply, wood burning stove, water supply, large roller doors etc. It's a proper little man cave and it's been a great workshop for my motorcycle projects etc.

I have aspirations of going self employed with some fabrication and motorcycle work.

I was wondering if anyone has any information about running a business like this from 'home'..

Insurance , health & safety, tax etc etc etc !!

Many thanks in advance.

Ted

carry on and dont tell anyone otherwise u will have planning down on u and buisness rates ect ect. just do it till u start having bother i ran a part time shotblasting buisness and a hire service for 1o years from home no bother

 

[tedmagnum]

The property is fully paid up. It's all detached and there should be no problem with noise at all.

Loudest thing I use is a chopsaw and the neighbours said they've never heard it.


I don't want a public accessed business. Too many prying eyes !!

I want to build stuff and sell online.


My main concerned are insurance for my equipment and council tax etc ???

 

[rtbcomp]

After checking the deeds for covenants, apply for planning permission for change of use, when this is turned down (99% certain if it's anything to do with motors) then approach your insurance company with a view to running a business from there, when this is refused (99% certain if it's anything to do with motors), tell HMRC you are running a part-time business and just keep accurate records.

Don't bother with HSE - they'll find you.

It's much easier to run a hobby from a private address!

 

[Gritineye]

carry on and dont tell anyone otherwise u will have planning down on u and buisness rates ect ect. just do it till u start having bother i ran a part time shotblasting buisness and a hire service for 1o years from home no bother

This approach worked for me for 35 Yrs, retired now..

 

[ytre]

carry on and dont tell anyone otherwise u will have planning down on u and buisness rates ect ect. just do it till u start having bother i ran a part time shotblasting buisness and a hire service for 1o years from home no bother

Couldnt agree more brightspark, these gov departments will destroy you, work away and say nothing, HMRC will soon twindle your profit if you go down that road

 

[rtbcomp]

If you evade tax you will be in deeper doo-doos than otherwise. HMRC are putting a lot of extra effort into catching evaders and avoiders, and not just the likes of Starbucks.

You must register your business with HMRC and keep accurate records.

I had a visit from planning after a complaint that I was running a business from home and he told me that if I had being doing this for more than 7 seven years without a complaint then I could carry on. In fact my premises are business premises so the guy went away happy.

Don't forget that professionals such as accountants and lawyers have to shop anyone they suspect of evading tax. They're not allowed to warn the person involved and if they don't shop them they could go to prison.

 

[Shedendman]

Couldnt agree more brightspark, these gov departments will destroy you, work away and say nothing, HMRC will soon twindle your profit if you go down that road

+3 on that.
I was running my one man high pressure cleaning business was doing ok for the 1st year untill i opened my gob to much and decided to go full monty etc,had to sell everything after 6 months was costing me more to run than i was earning

 

[rtbcomp]

If you can't run a business within the system then your business isn't viable or you're doing it wrong.

 

[Wallace]

If you can't run a business within the system then your business isn't viable or you're doing it wrong.

Well said, good advice. Tax avoidance and Tax evasion, one is legal!

 

[brightspark]

If you can't run a business within the system then your business isn't viable or you're doing it wrong.

many cottage industries started at home and wouldnt of been able to start without testing the water out 1st , renting a unit out and paying buisness rates is dead money and needs a large turnover on a regular basis . just start at home if u allready have a job and your on pay as u earn . just submit your extra income at the years end everythings fine, no need to register anything just submit form and they tax u on it

 

[rtbcomp]

Perfectly true which is exactly what I did when I started repairing computers, this is within the system as long as you declare any profits.

This is a different matter all together

This approach worked for me for 35 Yrs, retired now..

 

[steve.h]

So what is the situation on having a hobby (welding/blacksmithing) working in your workshop at home (as most hobbiests do), but you decide to sell some of the stuff you make, through word of mouth or online. You are surely not classed as a business if it is your hobby, if you didnt sell some of the stuff you made then your workshop/garden/house would look like a scrap yard on speed... I have only made stuff as christmas presents etc so far but would like to sell some stuff I make. The housing association whos house it is agreed that as a hobby with me selling some of the stuff I make is acceptable as long as the neighbours didnt complain and it wasnt a full time business. I did read that the government are now trying to make it easier for tenants to start business`s from home.
I would of course decalre what I did sell to HMRC, even though I would probably never break the tax threshold, so what is wrong with that.
My great grandfather started a bakery about 75 years ago from the outbuildings/garages connected to his house, this developed into a business employing over 50 people, without being able to start up this way there wouldnt be half the companies there are today. The gov need to realise that not everyone had £000000s to start up with or could even raise any funds, so spending £8k plus on a unit and rates just isnt viable, so how do we start up in that situation ??

 

[Gritineye]

Perfectly true which is exactly what I did when I started repairing computers, this is within the system as long as you declare any profits.

This is a different matter all together

Don't see how I did anything different to you, my business was legit from the start and later VAT registered. The approach I was referring to is not to go looking for problems, they will find you soon enough!

 

[rtbcomp]

If you sell for profit it's a business and profit should be taken into account for tax. Don't forget your part-time profits should be added to your other taxable incomes (wages, pensions, benefits, investments &c) before deciding whether or not you're going to exceed any thresholds.

Tell HMRC what your doing as you will have to fill in a self-assessment tax return every year.

If you operate within agreed terms there's nothing wrong to my way of thinking. Whether the planning department of your council sees it that way is a bit of a lottery.

There are two issues here - planning and tax. HMRC aren't concerned with planning that's your council's job and they usually only react to complaints, and even then their first step will be a warning.

If you have an office-based business (selling on Ebay, writing software, accountancy &c) you're not likely to get a complaint. I suspect this is the sort of business the government are trying to allow people to run from home.

If you're making a noise or smells or have a lot of deliveries you are likely to get a complaint and the council will respond to that complaint. They can close you down if they feel the complaint is valid or you don't comply with any conditions they impose on you, which means you'll have to grasp the nettle, do you give up or invest in premises?

If I wasn't able to buy freehold business premises of 600 sq.ft plus a yard for £5000 two doors from my house I'd still be working as an employee.

Another point worth noting. If you work from home and set aside a room you can claim heat & light for that room, but you should have to pay business rates on that room, probably get planning consent for change of use and pay capital gains tax on the room if you sell the house. Moral? Set you office up in the corner of the dining room!

It is a pain starting a business, especially in a country where bureaucracy wins over pragmatism.

 

[rtbcomp]

Don't see how I did anything different to you, my business was legit from the start and later VAT registered. The approach I was referring to is not to go looking for problems, they will find you soon enough!

You were concurring with a post which said "Don't tell anyone.........." I took this "anyone" to include the tax authorities.

 

[tedmagnum]

My biggest concern is insurance for my equipment. A scum bag with a transit could easily put a ten grand hole in my pocket...

Do I put my gear on the house contents? Will they class a claim as invalid when/if they find out its a small business ?

 

[Gritineye]

You were concurring with a post which said "Don't tell anyone.........." I took this "anyone" to include the tax authorities.

No problem.

 

[rtbcomp]

My biggest concern is insurance for my equipment. A scum bag with a transit could easily put a ten grand hole in my pocket...

Do I put my gear on the house contents? Will they class a claim as invalid when/if they find out its a small business ?

Really only your insurance company can answer that - but I would say £10k is a bit out of the ordinary for a domestic house policy.