If you are planning to use your home as a workplace, there are a number of points to check before you begin.
Working from home can affect your mortgage, your home insurance, your tax situation and even your neighbours.
What to check before you start:
If you are thinking of using your home as a workplace, it is a good idea to check with the following:
» Your mortgage lender or landlord/freeholder.
» Your mortgage or tenancy agreement may prevent you from using your home to run a business.
» Your insurance provider. You may have to take out extra insurance.
» Your local branch of the Valuation Office Agency to see if you will be charged business rates.
» HM Revenue & Customs and an accountant to see what your income, VAT and Capital Gains Tax position is.
» A solicitor to check legal aspects.
» Your local HSE or local authority to find out the health and safety aspects of running your business from your home and how to do a risk
assessment.
» Your neighbours, to make sure they have no objection to you running your business from home.
» The planning department of your local authority to see if you need to make structural changes to your home. You may need planning
permission. You must also make sure you comply with building regulations.
Building regulations and planning permission:
If running your business from home means that the use of the building changes a lot, or the activities that you undertake have an effect on
the area where you live, you may need to apply for planning permission from your local authority.
You may have to apply for planning permission if:
» Your home will no longer be used mainly as a private residence. This is the key test – has it become business premises first and a home
second?
» Your business activities will lead to increased traffic or parking in a residential area.
» Your business involves any unusual activities for a residential area.
» Your business may disturb your neighbours at unreasonable hours or create other forms of nuisance, such as noise or smells.
»You are making major structural changes to your property, altering or extending it.
If you need to make structural changes to your home, they must meet local authority building regulations.
You can check informally with your local council whether your proposed development needs planning permission. For a fee, you can also apply
for a formal decision.
Planning permissions in Scotland are granted by local councils, while appeals are handled by the Scottish Executive.
Find information on planning permissions and appeals in Scotland on the Scottish Executive website.
Building standards regulations in Scotland are also distinct from those in England and Wales - they are dealt with by the Scottish Building
Standards Agency (SBSA). Find out about building standards regulations in Scotland at the Scottish Building Standards Agency website.
