Legal Ramifications of business in shed

[ByronBlack]

Hi All,

Before I head of on my search for legal info, i'd though i'd pick the collective UKWF brain.

Basically, I wish to run a small business from the workshop in my garden. It's all legal with regards size and part-p electrics etc..

However, I need to install running water, and i'll need some kind of insurance as i'll be running a small optical lab.

What legal/business requirements do I need to consider to trade legally?

I'm assuming i'll need to maybe have some kind of fire survey and health and safety inspection?

Cheers in advance for any info

 

[Dave S]

You'll need to talk to your planning dept. because it will cease to be just a storage shed.

Building regulations will also apply - the water supply and drainage will have to be done to regulations.

As well as needing insurance relating to the shed and the business, you'll need to make sure your house insurance are aware that you will be running a business from home. I think they are unlikely to be bothered, but better to find out now than when trying to make a claim.

Dave

 

[nickson71]

my first thought would be does your coucil tax change to business rate???
closely followed by build regs


not got a clue but that would be something to look into

 

[Gary]

Your house hold insurance and mortgage if you have one will certainly but the first to look into. I'm not sure whether you may need planning permission as it could be classed as a change of use before you even start looking at the building regs and health and safety.

One wonders if companies such as Harley Davidson would have got off the ground had they started in modern Britain today.

Sorry that looks like rant number two and I said only one for toady.

Gary

 

[Gary]

You'll need to talk to your planning dept. because it will cease to be just a storage shed.

Building regulations will also apply - the water supply and drainage will have to be done to regulations.

As well as needing insurance relating to the shed and the business, you'll need to make sure your house insurance are aware that you will be running a business from home. I think they are unlikely to be bothered, but better to find out now than when trying to make a claim.

Dave

Sorry just read Dave's entry again. "Insurance unlikely to be bothered". Yeah right if they can charge more my money says they will.

Best of luck anyway, keep us posted.

Gary

 

[Jake]

Planning permission is the first hurdle.

 

[MIGNAL]

If business rate does apply don't forget to apply for the small business rate relief. I don't think a small garden workshop will be terribly expensive in terms of business rate.I currently pay approx. £200 per year on an attic workshop.

 

[engineer one]

you'd better get a check done on your freehold just to see whether there are any estate restrictions to running a business there.

often there are some funny restrictions, these generally only apply to those developments like a barretts one where they sold the ultimate freehold separately, but it can sometimes bite you in the a**e at the most unexpected times.

you may need to install a separate electric meter because you should be able to offset some of the costs in the shed against profits.

good luck
paul :wink:

 

[ByronBlack]

Thanks for all the tips fella's. My todo list is growing ever longer

I must admit, it did cross my mind not to inform the legal entities about my business, but with it being optical based, it could easily get found out so I better make sure it's legit. I never did anything when I was working from home doing the freelance IT thing, but then I guess that's a little different.

So, on monday i'll be calling the council and working out (this is more for my benefit

- Any change to council tax
- What regs and planning do I need to sort out
- Implications of water and drainage
- Any alterations to current house-hold insurance and mortgage.
- Seperate insurance for the business and shed contents.

Don't we all just love beaucratic britian!

 

[mr]

Don't forget the tax benefits of running your business from home. All Ive ever done is told my accountant where my office is - just off my hallway - and that was the end of that. Its a technology / services business I don't have stock etc but the only significant change was to what I could claim as a business expense. - ie a percentage of household bills etc. Hope that makes sense Im the best part of two bottles of red down. Anyway back to the workshop. Im 'tidying not touching stuff with blades

Cheers Mike

 

[Anonymous]

I must admit, it did cross my mind not to inform the legal entities about my business, !

So Byron, you like prison food then?

 

[DomValente]

BBwrote

Don't we all just love beaucratic britian

:lol: :lol: Nearly wet myself reading that. Try living in Italy :lol: :lol:

Dom

 

[Dave S]

Sorry just read Dave's entry again. "Insurance unlikely to be bothered". Yeah right if they can charge more my money says they will.
Gary

Just going on my experience, Gary. Maybe we were lucky, but our house insurance co. were not worried about us keeping some stock in our garage, although they wouldn't insure the stock itself and we had to insure it separately. They continue to insure my tools which are in the same garage - the same max value applies as before.

Dave

 

[ByronBlack]

Hi mike - I'm still registered with my accountant who did my accounts when I was running my IT business from home so i fully intend to get him to claim back the relevant household bills etc.. Apparently you can also do the same with your car, you can claim a certain amount for it's upkeep, fuel etc..

 

[Jake]

Careful though, as will you lose the 'main residence' capital gains exemption over the proportion of the home which you claim as a business expense, so what you gain now you may well lose (potentially in spades) when you come to sell your house.

 

[Gary]

Just going on my experience, Gary. Maybe we were lucky, but our house insurance co. were not worried about us keeping some stock in our garage, although they wouldn't insure the stock itself and we had to insure it separately. They continue to insure my tools which are in the same garage - the same max value applies as before.

Dave

That's what I mean, your insurance company did you a big favour. No increase in premium and no cover for your stock. Now that's what I call a deal. :lol:

Gary

 

[The Restorer]

Business's run in a shed or from home in general are a nightmare to make legal.
1. If you have a standard, priced on bedroom, insurance policy (as most seem to be) and you have visitors i.e. clients/suppliers to your premises, then your insurance is likely to be a) declined or b) have a hefty increase. Don't forget business use of any vehicles.
2. Business rates will apply.
3. Change of use is likely to apply re planning.
4. If you're using chemicals, then that's likely to add to planning probs.
5. Fire Officer may need to be notified.
6. Neighbours, now or in the future, may not like the idea of a business in your back yard.

And the list probably goes on and on. Then theres all of the changes to affect you personally i.e dealing with banks, accountants etc. and just plain running the business.

Lots of small businesses starting from home just get on with it and hope for the best. Dodgy, but at least you've a chance of seeing how it goes without having to lease premises (assuming you can find any!).

Planning is likely to be the 1st and final hurdle, i.e. you won't get it.

 

[Gary M]

you'd better get a check done on your freehold just to see whether there are any estate restrictions to running a business there.

often there are some funny restrictions, these generally only apply to those developments like a barretts one where they sold the ultimate freehold separately, but it can sometimes bite you in the a**e at the most unexpected times.
good luck
paul :wink:

Hi Byron,
over here (N.I) this would be a major factor, 99% of (town) householders wouldnt be able to run any business from home.
although out in the sticks maybe a different story.