Pros and Cons of Working from Home
It is fair to say that if your type of business is suitable, if your family agree and if you have the self discipline and motivation to operate your business from home, then there can be no better or more cost-effective way to commence self-employment. Don't think of it as a soft option though, you will have to put just as much time and effort into making your business a success as would be required if you were working from any other location.
Many businesses run from home without planning permission. Generally speaking, they are inconspicuous micro-businesses that do nothing to inconvenience the neighbours or alert the authorities. However, to remain legal and above board or if you need to make any alterations to your home, planning permission should be sought. If you are not sure, simply contact your local Planning Officer for help, advice and information on the current application fee. If your business is as low key as that of a jewellery designer for example, you may well be considered exempt.
The Inland Revenue will generally accept a claim for anything to do with the business, for example, a proportion of the telephone bill, a proportion of heating and lighting and even security if it applies. Your accountant will be able to advise you what you can claim as costs to your business.
Advantages
- Cost.
- Convenience.
- Flexibility.
Disadvantages
- Can disrupt family life.
- Separation of business and personal life becomes more difficult.
- You may give your business a less professional image.
- A less businesslike atmosphere.
- Can create an insurance problem.
- Can create a mortgage problem (check with your mortgage provider).
- Depending on the type of business, it can create a health and safety problem (contact the Health and Safety department at your town hall or civic centre).
- Can create a planning problem (contact your planning department).
- You may be liable for capital gains tax on the sale of your home if you claim for part of your mortgage (check with your accountant).
Whilst it may appear that the disadvantages outweigh the advantages, remember that the advantages, albeit only three, are definite and large, whereas the disadvantages present only possible problems.
