With an estimated 2.1 million businesses based at home (a number which is growing fast), many of them operating in a family environment, more and more small business owners are torn between concentrating on a successful career and meeting the needs of a family.
Many small businesses are successfully started up from home, and there are huge advantages of doing this while you get your business off the ground.
The biggest benefit for a small business is that you do not have to fork out on the cost of premises in the early days. You also save huge amounts of time in looking for premises. Another advantage is that you can create more time to work on your business because your commute will be taking a few steps from the kitchen!
But the downsides are huge too. (more…)
As more and more people choose to work from home, the question of how you can reclaim any home office expenses is frequently asked.
The general HMRC rule for claiming tax relief on business expenses is that you can only reclaim costs that have been ‘wholly and exclusively’ incurred in connection with your trade.
As technological advances and work practices enable it, more and more small business owners are deciding to work from home.
Dedicated business premises can also be a big outlay for a cash-strapped startup and coupled with the long-term contracts often required, it’s not surprising so many startups are choosing to start their new business from home.
More than 60 per cent of the UK’s new businesses are now started from home.
It’s a very sensible way to get going. You remove a lot of the financial risks by operating from premises you are already paying for. And it’s a lot easier to make the right decisions early in the life of your business if you’re not waking up each day wondering how you’re going to pay the bills.
As your new venture grows you may find your business has outgrown your spare bedroom. You might need extra space, or perhaps want to take on staff without them tramping around your house. Or maybe you have clients visiting your home and want to present a better image.
The wonderful thing about starting your business in the 21st century is how inexpensive it is to get the ball rolling.
The internet has made marketing cheaper and more efficient than ever before, and technology has freed businesses from the need to have lots of staff.