Working from home overheads
Fabian
I am going to start my business soon and I am writing my business plan.
About overheads: can you indicate me, which are the percentages of
house bills (mortgage, electricity, water, council tax) I should
indicate as overhead figures (if I need/must)? 50%, none?
I was also thinking to indicate I buy 2o hand
computer/desk/chairs/furniture I will use for my business from
myself...is it something I need to do, is it worth it?
I own my own flat, however there is always a "landlord" I pay my annual
fee too. Can he oppose I start a business in my own flat?
I was also told I need to communicate my home insurance company that I
have started my own business there. Shall the insurance change,
increase? Or should I start an additional insurance? Consider also that
I will not have customers here.
Thanks.
Cheers,
Fabian
Simon Waters
>
> About overheads: can you indicate me, which are the percentages of
> house bills (mortgage, electricity, water, council tax) I should
> indicate as overhead figures (if I need/must)? 50%, none?
I think usually about a sixth, but it is very much down to what is
accepted locally. The main danger is getting reclassified under business
rates. Most of these rules comes down to not being perceived as taking
advantage by the tax man afaict.
I don't think there are hard and fast rules, although the telecottage
association (TCA) have some info in their handbook, and a local
accountant will know what has been acceptable in the past to the tax office.
The rules may have changed since.
> I was also thinking to indicate I buy 2o hand
> computer/desk/chairs/furniture I will use for my business from
> myself...is it something I need to do, is it worth it?
Too be honest second hand computers rarely are worth it these days.
Not sure on the business side, my company bought them as it needed them.
> I own my own flat, however there is always a "landlord" I pay my annual
> fee too. Can he oppose I start a business in my own flat?
Depends on covenants and contracts. But the law is actually very "pro"
working from home, I guess when a lot of the law was framed it was the
normal way of working.
> I was also told I need to communicate my home insurance company that I
> have started my own business there. Shall the insurance change,
> increase? Or should I start an additional insurance? Consider also that
> I will not have customers here.
My experience they don't care as long as you don't have people visiting
the premises for business when you may require public liability cover.
If they try and charge more shop around, sometimes there is a change of
details charge (10 or 20 quid).
However do tell them, as if they don't know they might well use it as an
excuse not to pay up if your computers are stolen or similar. Insurance
companies are very tight on underinsurance, if they think you had more
property than you insured, they just won't pay out (or at least try not to).
Insurance was one of the biggest expenses when I was a consultant,
professional indemity, and a client whose policies mandated a huge
public liability cover should I be working onsite (heavy industry -
don't want me crushing myself under 2 tonne of solid steel and claiming
against their insurers I guess). Ironic given most of the time I was 300
miles away.
Fabian
Simon Waters wrote:
> Fabian wrote:
> >
> > About overheads: can you indicate me, which are the percentages of
> > house bills (mortgage, electricity, water, council tax) I should
> > indicate as overhead figures (if I need/must)? 50%, none?
>
> I think usually about a sixth, but it is very much down to what is
> accepted locally. The main danger is getting reclassified under
business
> rates. Most of these rules comes down to not being perceived as
taking
> advantage by the tax man afaict.
what does it mean "being reclassified"? Do you pay more
water/electricity/council-tax if you are a business?
> > I was also thinking to indicate I buy 2o hand
> > computer/desk/chairs/furniture I will use for my business from
> > myself...is it something I need to do, is it worth it?
>
> Too be honest second hand computers rarely are worth it these days.
>
My question is not technical. My PCs are doing a great job. :-)
I meant if it is profitable, economically convenient and legal to buy
my computer second hand by myself to show it is a company PC and not
belonging to an individual.
> > I own my own flat, however there is always a "landlord" I pay my
annual
> > fee too. Can he oppose I start a business in my own flat?
>
> Depends on covenants and contracts. But the law is actually very
"pro"
> working from home, I guess when a lot of the law was framed it was
the
> normal way of working.
I dont understand. Before laws were less in favour of working at home
or more? (English is my second language as you can guess)
Thanks
Fabian