Premises and Insurance

Working from home

When starting in business a lot of people choose to trade from home. The main advantage is obvious ­ you save money, as you will have very few overheads.

However, there are several things that you need to consider when working from home, for example: is it practical? Or will it create the right impression.

You may need planning permission from your local authority to change the usage of your home from residential to business. The planning officer at the local council will determine this by the amount of nuisance caused by the business. This obviously will depend on what type of business you are operating.

Check with your insurance company to establish whether or not you are covered.

If trading from home, proportion of rent, rates and power can be reclaimed as a business expense. However, there may be capital gains tax implications from claiming certain costs as business expenses. Speak to your accountant first.

Renting

This is the most common way of acquiring premises business premises. Usually, it does not tie up so much capital, leaving money available for running costs.

Suitable premises in the right location, at a rent you can afford, can often be difficult to find but don’t opt for the first place you see, think carefully about all factors before signing a lease or tenancy agreement.

What you must remember is that a lease is a legal document and it would be foolish to sign one without seeing a solicitor first. For example, the lease may place certain restrictions upon use of the property or land, of which you may not be aware. Do not sign any agreement before checking whether the premises have planning permission for the use you need. This can be done contacting you planning dept at the local authority.

You should check the rateable value and the water rates of the property before committing yourself, also check your insurance liability with your landlord. Finally, make sure that any repairs that may be required are completed by the landlord before you sign any agreement.

Insurance

When you set up in business, you will need insurance, without it your livelihood is at risk. An unexpected loss could cause financial hardship and destroy months of hard work. It must be remembered some types of insurance are a legal requirement.

Running a business creates considerable legal responsibilities towards your employees, the public and your customers. Liability insurance protects against the main liabilities, which you may face in business.

These are employers, public, motor vehicle and product liability.

There may also be additional insurances which will be necessary depending on your type of business, these could include: property, goods in transit, money, motor vehicles or business interruption.