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General risk assessment for an office

This risk assessment for an office will help you comply with your legal health and safety obligations. It provides examples of common hazards present in an office, and gives you ideas of actions you could take to minimise the risks they pose. Because every office is different, it also includes space to add your own findings for dangers particular to your business. If you have an office, it is vital you carry out regular risk assessments to stay within the law and protect the people who work there. Don’t forget to also download and complete our fire safety risk assessment !
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Annual action plan (health and safety)

This annual action plan (health and safety) helps you plan your health and safety actions for the year. It sets out the most common health and safety checks you are likely to need to complete (on a daily, weekly, monthly, six monthly, annually, and five yearly basis) and allows you to efficiently record your comments. You can also add your own actions specific to your business. In addition to this annual action plan (health and safety) you must complete regular risk assessments. You can find these templates at General risk assessment for a shop or other business open to customers , General risk assessment for an office , General risk assessment for remote workers , and Fire safety risk assessment .
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Running a business from home
Setting up a home business
Q1:How do I prepare to set up a home business?

This question is concerned with the steps you need to take before using your home as business premises. For setting up a A private company limited by shares incorporated and registered in England and Wales. more generally, see How to set up a new company.

Consider:

  1. Permissions, approvals etc

    Depending on the nature of the business you plan to run and the extent of any changes you are planning to make to your home for the business, you may need some or all of the following permissions:

    1. Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. from your The branch of a local council which deals with planning permission. (see Q&A 2 and following);

    2. Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. approval if you are making certain alterations to your home (see Q&A 9 and following);

    3. consent from your The branch of a local council which deals with planning permission. if you put up a business sign (see Q&A 12);

    4. a special business licence if your business involves certain activities (see Q&A 13);

    5. consent from your landlord if you rent your home (see Q&A 15); or

    6. approval from your A business, usually a bank or building society, which lends money to a buyer of property in exchange for a 'security' over that property. The security allows the lender to use the property to recover the loan if there is any failure to make a payment when due. if you have one (see Q&A 14).

  2. Insurance

    See Q&A 16 and following for information about your insurance considerations.

  3. Health and safety

    If you plan to employ anyone, see clients or customers at your home, or carry out hazardous activities, there are legal requirements you must comply with. See Q&A 19 and following for more information.

  4. Tax

    You should always get tax advice from your accountant. See Q&A 26 and following for the kind of things you should be asking about.

  5. Disturbance to neighbours

    You need to think about whether your business might disturb your neighbours, and how to minimise this. See Q&A 29 and following for more information.


Permissions and insurance
Q2:Do I need planning permission to run a business from home?

You might, in two different circumstances:

  1. if you need to make changes to the building, this may require Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. in the usual way (see Q&A 4); or

  2. if your business activities change the character of your home (eg if you use it more for your business than for living in, see Q&A 6).

You will therefore need to think about Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. if you intend to run any business activity from home other than a small, simple operation on your own.


Q3:Do I need planning permission if my business is just me, working out of my home?

No. You will not need permission if you are simply working on your own from a desk, are not making any alterations to your home and are not changing the way your home is mainly used. The key test is whether your house is still mainly a home or has turned into business premises.


Q4:Do I need planning permission for my home business if I make structural changes to my home?

You will usually need Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. if you are rebuilding, adding onto or making structural changes to your home, unless what you are doing only affects the inside of your home or does not materially change its outside appearance. If your home is listed you are more restricted in what you can do and you may need special authorisation from your The branch of a local council which deals with planning permission. or the Secretary of State.

Knocking down an internal wall, for example, should not require Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. if your house remains mainly as a home.

There are detailed laws on when changes to your home will need Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land.; for example, you will need permission if you carry out building work which:

  1. increases the total area of ground covered by outbuildings by more than 50 per cent;

  2. means that the height of your home will exceed the highest point of your existing roof;

  3. involves a single storey extension which is more than 4 metres high; or

  4. is an addition or alteration to the roof using materials which are not similar to those currently used for the outside of your home.

It is best to check with your The branch of a local council which deals with planning permission. if you plan to carry out significant work to your home. You can find them through the Planning Portal.


Q5:Do I need planning permission to turn my garage or spare room into an office?

Not usually. You should not require Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. if your house remains mainly as a home, although converting all or part of your garage into an office may, depending on what is done, require Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. approval.


Q6:Do I need planning permission to change the use of my home to include business use?

Yes, if you use enough of it for your business to qualify. You need Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. if there is a material change to the use of your home. This is more than just incidental use of it for your business.

Working on your own in a home office is not a material change of use. Using your home entirely as an office and no longer living there will be a material change of use.

If you are not sure whether you will require Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land., you can ask your local planning authority. See Q&A 7.


Q7:Can I ask my local authority if I will need planning permission for a home business?

Yes.

You can ask your The branch of a local council which deals with planning permission. informally for guidance, and you can apply for a A certificate from the local authority saying whether an existing or proposed use of the land, or an existing or proposed development, is legal for planning law purposes. from them if you want to establish in advance whether running your business from home will require Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land.. If a A certificate from the local authority saying whether an existing or proposed use of the land, or an existing or proposed development, is legal for planning law purposes. is issued, the proposed activities that it lists will not need Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. unless something material changes about your business from what you told the An administrative body in local government, responsible for the provision of public services in each district, borough or council.when you applied.

If you need to find your The branch of a local council which deals with planning permission. , or make and application, see the Planning Portal.


Q8:Can I apply for planning permission retrospectively?

Yes. If you have already started running your business from home and are unsure whether you should have applied for Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land. in advance, you can still apply to your The branch of a local council which deals with planning permission. for a A certificate from the local authority saying whether an existing or proposed use of the land, or an existing or proposed development, is legal for planning law purposes..


Q9:Do I need Building Regulations approval to run a business from home?

You may need Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. approval if you plan to change the structure of your home or the means of access or exit, or add an outbuilding.

If you plan to run a business from home, you will need to consider whether you are required to give advance notice to and receive approval from your The branch of a local council which deals with planning permission. under Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine..

The legal requirements around Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. are detailed and complex. The process of notifying your The branch of a local council which deals with planning permission. , and what you need to do to obtain approval by means of a completion certificate, is outside the scope of this service. If you are uncertain as to whether you need to give notice and obtain approval, it is suggested you get expert advice. If you are making changes to your home and are engaging a suitably qualified architect (or possibly builder), you should ask your architect (or builder) to advise on this. Otherwise you should be looking for advice from a professional who specialises in this area.


Q10:Do I need Building Regulations approval to make changes to my home for my business?

You need to get Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. approval for lots of different types of building work. If you hire a builder to do the work for you, it will usually be their responsibility to secure the necessary approvals. Check that they do so, however, as you will likely be the one who has to answer to the An administrative body in local government, responsible for the provision of public services in each district, borough or council.if proper Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. approval is not obtained.

Having been given notice, your The branch of a local council which deals with planning permission. will check the building work and if satisfied that it complies with the Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. will issue you with a completion certificate.


Q11:Do I need Building Regulations approval to change the use of my home to include my business?

Sometimes. Some changes to the way your home is used require Legal standards for the design, construction and alteration of buildings in the UK. Failure to comply with building regulations can result in prosecution and a fine. approval. Chiefly:

  1. using your home as a shop; or

  2. using your home as a hotel or boarding house.

You can check with your The branch of a local council which deals with planning permission. if you are not sure.


Q12:Do I need permission to put signage about my business outside my home?

Yes. Displaying advertisements on an external wall of your home which is not normally used for that purpose is seen as a material change of use that requires Permission granted by a person's local council which allows him to do work to develop land or otherwise use land, for example, by building on it, or altering a building already on that piece of land..

You can check with your The branch of a local council which deals with planning permission. if you are not sure whether this applies to you.


Q13:Do I need a special licence for my home business?

Some business activities require a special licence, such as preparing food or playing music to customers. You will need to check if your planned business needs one of these.

You will need a special licence for certain types of business and business activities, most commonly:

  1. selling, cooking, preparing, storing or handling food, for which you need to apply to your An administrative body in local government, responsible for the provision of public services in each district, borough or council.for a licence;

  2. selling alcohol, for which you need to apply to your An administrative body in local government, responsible for the provision of public services in each district, borough or council.for a licence; or

  3. playing recorded music to the public, for which you may need a licence from PPL PRS Ltd.

See Licence and application requirements for more information on these and other licences.


Q14:Do I need permission from my mortgage provider before starting a home business?

It depends what your A loan (usually to an individual or individuals) to purchase a property, which is secured on the property. says. If your home is mortgaged, you will probably need permission if running your business will involve a change in the use of your property.

Many A loan (usually to an individual or individuals) to purchase a property, which is secured on the property. lenders also place a condition on their mortgages saying that you cannot make Alterations made to the structure of the property - usually to load-bearing parts of the building. Alterations to non-load bearing parts of the building might also be considered to be structural where the essential appearance and shape of the property is changed. or change the use of your home without their permission.

You will need to check your A loan (usually to an individual or individuals) to purchase a property, which is secured on the property. conditions carefully. Whether consent of your A business, usually a bank or building society, which lends money to a buyer of property in exchange for a 'security' over that property. The security allows the lender to use the property to recover the loan if there is any failure to make a payment when due. is required will be down to the particular conditions which apply to you.

If you A violation of a legal or moral obligation. your A loan (usually to an individual or individuals) to purchase a property, which is secured on the property. conditions, your A business, usually a bank or building society, which lends money to a buyer of property in exchange for a 'security' over that property. The security allows the lender to use the property to recover the loan if there is any failure to make a payment when due. may have the right to require early repayment and take possession of your home.Therefore, if you are in any doubt you should speak to your A business, usually a bank or building society, which lends money to a buyer of property in exchange for a 'security' over that property. The security allows the lender to use the property to recover the loan if there is any failure to make a payment when due. at an early stage.


Q15:If I rent, do I need permission from my landlord to run a business from home?

If you rent your home, the tenancy agreement you signed with your landlord may prohibit or in some way restrict you from running a business from home. You should therefore read your tenancy agreement carefully and follow any process it lays down so as to avoid being in A violation of a legal or moral obligation. . If you A violation of a legal or moral obligation. your tenancy agreement, your landlord may be able to give you notice and evict you.

You may be able to run a business from home if your tenancy agreement is a A business run from the owner's main home. tenancy. This is a tenancy agreement which allows you to run a business which might reasonably be carried on from home, as long as you continue to live there and your business does not involve selling alcohol to be consumed at your house.

If you are in doubt, you should consider seeking expert legal advice and contact your landlord at an early stage. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.


Q16:Will working from home affect my existing home insurance?

Yes it will. It is important you check both:

  1. the terms of insurance you have in place, to see if you need to inform your insurer; and

  2. whether you have adequate insurance cover in place, or indeed any cover, for running a business from home.

Standard domestic home insurance policies will typically not cover business-related losses. They will also commonly require you to notify your insurer before you start running a business from home. Failure to notify your insurers may invalidate a claim under the policy and entitle the insurer to cancel the policy. This in turn may also be a A violation of a legal or moral obligation. of your A loan (usually to an individual or individuals) to purchase a property, which is secured on the property..


Q17:Do I need any special insurance to run a business from home?

You will also need to think about whether you have adequate cover to run a business from home; for example:

  1. if you provide advice or a service, you should consider Insurance which covers the cost of compensation for loss or damage caused by providing negligent services or advice to a customer. for legal support to defend claims against your business from a customer or client;

  2. if you have visitors to your home, you should consider Insurance which covers claims from the general public for injuries or property damage caused by a business or its staff. to cover you if someone is injured or you accidentally damage their property;

  3. if you employ Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., Insurance which covers illness and injuries suffered by employees during the course of their work. is usually compulsory unless you are only employing members of your immediate family (see Q&A 18); and

  4. equipment you use for your business, and cash generated by your business, will probably not be covered by your home contents policy so you may wish to insure them separately.


Q18:If I employ staff at my home business, do I need insurance to protect them?

If you employ Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. you must have Insurance which covers illness and injuries suffered by employees during the course of their work. for at least £5 million to cover any harm suffered by them while at work except for:

  1. Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who are part of your immediate family, which means:

    1. your parents, step-parents and grandparents;

    2. your spouse and civil partner;

    3. your siblings and half-siblings; and

    4. your children, step-children and grandchildren;

  2. Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. not ordinarily resident in Great Britain; or

  3. if you have only one An individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who owns fifty per cent or more of your A private company limited by shares incorporated and registered in England and Wales. .

Failure to take out such insurance where compulsory is a criminal offence and you will be subject to a fine.

See Employers' liability insurance for more information on Insurance which covers illness and injuries suffered by employees during the course of their work..

See Q&A 16 and following on insurance generally if you run a business from home.


Home business health and safety
Q19:Do I have to comply with health and safety requirements if I run a business from home?

Yes you do, although if you are running a small business from home with no Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. or visitors there is very little that you need to do in practice.

You must carry out the same health and safety checks that you would have had to do if your business was being run from dedicated business premises. You are subject to the same health and safety laws and it makes no difference that you are running your business from home (see Q&A 20 and following).

Failure to comply with your obligations to protect the health and safety of your Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. or anyone else who may be affected by your business activities is a crime, and your A private company limited by shares incorporated and registered in England and Wales. and any The directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager, secretary or other similar In a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches., or anyone who acts in any such capacity, is guilty of an offence and could be prosecuted.

Specifically, you:

  1. must provide training for Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (how much training is needed will vary depending on the risks presented by your workplace) (see When to give health and safety training);

  2. must have a health and safety policy in place if you employ five or more Individuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (see Q&A 20 and Staff handbook and policies for a template health and safety policy);

  3. need to carry out The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers., put safety procedures in place and provide first-aid equipment (see Q&A 21 and following); and

  4. must take out Insurance which covers illness and injuries suffered by employees during the course of their work. to protect Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. other than immediate family (see Q&A 18 for more information).


Q20:Do I need a health and safety policy for my home business?

Yes, if you have five or more Individuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. you have to provide a health and safety policy for them. It is sensible to have a written health and safety policy even if you have fewer than five Individuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Staff handbook and policies includes a health and safety policy; you can choose to generate the policy either on its own or as part of a full A staff handbook is a manual provided to employees by an employer which usually contains information about company policies and procedures..

See Writing a health and safety policy for further guidance.


Q21:Do I have to carry out risk assessments for my home business?

Yes. You are legally required to carry out a The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. to identify health and safety risks to your Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and any visitors.

Following a The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers., you must take reasonable steps to ensure that any clients, customers or People, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as freelancers or consultants. whom you invite into your home are reasonably safe.

See Risk assessments for business premises for how to conduct a The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. and a fire safety The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers., and General risk assessment for an office and Fire safety risk assessment for template documents you can use.


Q22:Do I have to think about health and safety in parts of my home that I do not use for my business?

Yes.

Your legal responsibility to visitors includes taking steps to protect them from any risks in parts of your home which they would normally not be allowed to enter, provided the risks are not obvious.

You also have a legal responsibility to be prepared for any visiting children to be less careful than adults and you may need to make reasonable adjustments to accommodate A physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. visitors. See Deciding what action to take for steps you can take to deal with common hazards and Responsibility for providing health and safety facilities for guidance on what facilities you should be providing for Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and visiting customers or clients, including a health and safety action plan (see Annual action plan (health and safety)).

Any warning you give to a visitor about a risk in relation to your home must be enough to enable your visitor to be reasonably safe to excuse you from liability and in any event you cannot excuse yourself from liability for death or personal injury caused by your Failure to exercise the care that a reasonable person would in the circumstances. Intention is irrelevant..


Q23:Do I have to carry out workstation assessments for my home business?

Yes. If you have Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. working at workstations, you have a legal responsibility to make sure that they are safe. There is no lesser duty because your business is based in your home. You must identify risks related to working at a desk as part of your The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. and ensure workstations are suitable.

It may be appropriate to give Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. training about how to adjust their workstations properly, and you may need to provide extra equipment (eg footrests or screen stands) to make sure that Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are comfortable and not at risk of injury. See Screens, workstations and eye health for steps you can take regarding workstations to make sure they are safe.


Q24:What fire safety steps must I take at my home business?

You must carry out a specific fire-The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers.. Your duty to meet fire safety regulations is the same for a business you run from home as for one that you run from business premises. See Doing a fire safety risk assessment for how to carry out a fire safety The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers., together with a template The process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. you can use (see Fire safety risk assessment).


Q25:Do I have to provide first-aid equipment at my home business?

If you have Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., you must provide suitable first-aid equipment. What is suitable will depend on how many Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. you have and the hazards in your workplace.

For a small office-type business based in your home, you will likely only need a first-aid kit, containing a basic first-aid manual, a variety of plaster sizes, bandages, eye Small pieces of code which are added into an existing computer program to make alterations to it, often to correct a fault in that software., antiseptic, disposable gloves, safety pins and wound dressings. Higher risk businesses will likely need more equipment, depending on the specific hazards involved.

Although you are not under a strict legal duty to have first-aid equipment and facilities for customers or other visitors who may become injured or ill, the Health and Safety Executive. Britain's national regulator for workplace health and safety. strongly advises all businesses to provide them.


Tax and business rates
Q26:In summary, are there any tax implications of running a business from home?

Tax is outside the scope of this service but, as a minimum, you need to ask your accountant about the following tax matters if you plan to run a business from home:

  1. Tax allowances

    Depending on how you structure your business, you may be able to reduce your Tax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. bill by including business costs in your A form submitted to Her Majesty's Revenue and Customs at the end of each tax year (6 April to 5 April) declaring your income for the year and the costs you have incurred. This will be used to calculate how much tax you owe for the tax year. and claiming a proportion of your home overheads such as council tax and utility bills.

  2. If you sell your home

    There can be CGT: A tax on the profit when certain assets are sold (or disposed of) that have increased in value. It is the gain in value an individual has made that is taxed, not the actual amount of money received. implications when you sell your home if you have been running a business in part of it. See Q&A 27.

  3. A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses.

    These are usually payable on any business premises, even if they form part of your home. See Q&A 28.


Q27:In summary, if I have a home business and then sell my home, do I have to pay capital gains tax?

You might. Detailed information about tax is outside the scope of the service and you should ask your accountant about the full tax implications of setting up a business at home.

On a sale of your home you will generally speaking get relief from CGT: A tax on the profit when certain assets are sold (or disposed of) that have increased in value. It is the gain in value an individual has made that is taxed, not the actual amount of money received. if you have used it as your only or main home for all the time you have owned it.

However, if part of your home has been used exclusively for business, you may not receive relief from CGT: A tax on the profit when certain assets are sold (or disposed of) that have increased in value. It is the gain in value an individual has made that is taxed, not the actual amount of money received. on all or a proportion (depending on whether you ever lived in that part) of any gain made on that part.


Q28:Will I have to pay business rates on my home?

You might.

If you run your business from home, you will not usually have to pay A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses. if you only use a small part of your home (eg a bedroom office) or if you only sell Physical items being sold. Distinguished from digital content and services, neither of which are physical items. by post. If, on the other hand, you:

  1. use large areas of your home for your business;

  2. have converted parts of your home for a business;

  3. sell Physical items being sold. Distinguished from digital content and services, neither of which are physical items. or services to customers who visit your home; or

  4. employ other people who work in your home,

then you must generally pay A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses. on any area of your home which use at least partly for your business.

If you are required to pay A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses., you may be entitled to a reduction of the A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses. you would otherwise owe if your business is in a rural area or you would suffer hardship.

If the The amount that the Valuation Office believes a property would cost to rent for a year on the open market; this figure is used to determine business rates. of your home for business purposes is less than £15,000, you may be entitled to A discount on business rates given to businesses whose market rent is below a certain amount., and if it is less than £51,000 you may be entitled to a smaller A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses. bill.

Contact your local council to find out what your A tax paid on any area of a building or piece of land which is used for business purposes. Local councils send a bill for any business rates owed in February or March of each year. It is effectively council tax for businesses. will be for your A business run from the owner's main home..


Complaints from neighbours
Q29:Could my neighbour complain to the local authority about me running a business from home?

Any of your neighbours can complain to your local authority if they think a A nuisance on or from a property such as smoke, fumes, smells and noise which a local authority has a duty to investigate and, if satisfied it meets the legal tests, in respect of which it has power to serve an abatement notice requiring the property occupier to stop the nuisance. will be or has been created by your business. The An administrative body in local government, responsible for the provision of public services in each district, borough or council.then has a legal duty to investigate the complaint.

A A nuisance on or from a property such as smoke, fumes, smells and noise which a local authority has a duty to investigate and, if satisfied it meets the legal tests, in respect of which it has power to serve an abatement notice requiring the property occupier to stop the nuisance. includes the following coming out of your home:

  1. smoke, fumes, gases, dust or steam;

  2. smells; or

  3. noises.


Q30:What can my local authority do if a neighbour complains about my home business?

If following its investigations your An administrative body in local government, responsible for the provision of public services in each district, borough or council.is satisfied that a A nuisance on or from a property such as smoke, fumes, smells and noise which a local authority has a duty to investigate and, if satisfied it meets the legal tests, in respect of which it has power to serve an abatement notice requiring the property occupier to stop the nuisance. exists or is likely to occur, it can To deliver or send documents to be used in court proceedings to someone in a way that complies with court rules. a notice on you (called an A notice which a local authority has power to serve on the occupier of a property if satisfied that a statutory nuisance exists or is likely to occur on the property, requiring the owner to stop the nuisance and where necessary take remedial steps) requiring you to do either or both of the following:

  1. stop or limit the An interference with a person's enjoyment and use of their land.;

  2. carry out any necessary work to deal with the An interference with a person's enjoyment and use of their land..

If your business causes damage, injury or inconvenience generally to your neighbours, your An administrative body in local government, responsible for the provision of public services in each district, borough or council.can also issue legal proceedings against you.

Alternatively, they can deal with the An interference with a person's enjoyment and use of their land. themselves and charge you for this.


Q31:What happens if I get an abatement notice from the council and do nothing?

It is an offence not to comply with an A notice which a local authority has power to serve on the occupier of a property if satisfied that a statutory nuisance exists or is likely to occur on the property, requiring the owner to stop the nuisance and where necessary take remedial steps from your local authority. You might escape liability if you can show you did what you could to prevent or counteract the An interference with a person's enjoyment and use of their land.. However this defence is not available for some types of An interference with a person's enjoyment and use of their land. coming from your home such as smells and noise.


Q32:What should I do if I receive a notice from my local authority about a nuisance caused by my business?

Take the notice seriously and act quickly. Consider getting expert legal advice at an early stage as it is a criminal offence not to do what is asked. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

You have the right to appeal against the notice to a magistrates' court within 21 days of the date on which the notice was Delivered or sent documents to someone for use in court proceedings in a way that complies with court rules. on you.

The grounds on which you can appeal include:

  1. the An administrative body in local government, responsible for the provision of public services in each district, borough or council.unreasonably refused to accept alternative methods to those in the notice, which were proposed by you to deal with the An interference with a person's enjoyment and use of their land.;

  2. the time-limit to comply in the A notice which a local authority has power to serve on the occupier of a property if satisfied that a statutory nuisance exists or is likely to occur on the property, requiring the owner to stop the nuisance and where necessary take remedial steps is unreasonable; or

  3. for certain categories of An interference with a person's enjoyment and use of their land., the best practicable means were used to prevent them.


Q33:Could my neighbour sue me if my home business affects them?

Your neighbour may have grounds for bringing legal proceedings against you if your business causes them a An interference with a person's enjoyment and use of their land. by damaging their property or interfering with their property rights – for example if you are causing noise or other disturbances during the evening, night-time or early morning or if your business is emitting noxious fumes.

If a court decides you have caused an unreasonable An interference with a person's enjoyment and use of their land. to your neighbour, it can order you to stop or limit the disturbance (for example, by restricting the hours you operate), and can order you to pay compensation.


Q34:What should I do if a neighbour complains to me about my home business?

If your neighbour complains to you about you running a business from home, you should take the complaint seriously and try to resolve it as quickly as possible.

Unless your neighbour has sent you a formal letter threatening legal action (as to which see Q&A 35) your first step should usually be to discuss the matter with your neighbour so you have all the information you need. It will also give you the opportunity to see if you can resolve the matter between yourselves.

If you cannot resolve the complaint informally with your neighbour, think about the following:

  1. The strength of your neighbour's case

    You should consider whether your neighbour has a valid legal reason for complaining to your An administrative body in local government, responsible for the provision of public services in each district, borough or council.and whether your An administrative body in local government, responsible for the provision of public services in each district, borough or council.will have a duty to investigate the matter. For guidance on this and the possible consequences for you, see Q&A 29 and following.

  2. A voluntary process by which an independent third party (a mediator) helps two or more parties in dispute come to a mutually acceptable agreement or arrangement.

    You could suggest A voluntary process by which an independent third party (a mediator) helps two or more parties in dispute come to a mutually acceptable agreement or arrangement. to your neighbour, which is a popular form of The process of resolving a dispute between parties, whether through formal processes such as litigation or arbitration, or more collaborative processes such as mediation.. There will be a fee but hiring an impartial An independent, impartial person who helps two or more individuals or groups reach a mutually acceptable solution to a legal dispute in a process called mediation. with experience in settling neighbour disputes would be cheaper for both you and your neighbour than hiring a lawyer or taking legal action.

    See Mediation for more information on A voluntary process by which an independent third party (a mediator) helps two or more parties in dispute come to a mutually acceptable agreement or arrangement..

  3. Contacting your local authority

    If the dispute cannot be resolved through informal discussions or A voluntary process by which an independent third party (a mediator) helps two or more parties in dispute come to a mutually acceptable agreement or arrangement., you could think about contacting your An administrative body in local government, responsible for the provision of public services in each district, borough or council.for its view, given that your An administrative body in local government, responsible for the provision of public services in each district, borough or council.will have a legal duty to investigate the complaint if satisfied that your business has created a A nuisance on or from a property such as smoke, fumes, smells and noise which a local authority has a duty to investigate and, if satisfied it meets the legal tests, in respect of which it has power to serve an abatement notice requiring the property occupier to stop the nuisance. (see Q&A 29).

  4. Legal advice

    If informal discussions or A voluntary process by which an independent third party (a mediator) helps two or more parties in dispute come to a mutually acceptable agreement or arrangement. do not resolve the complaint, consider getting expert legal advice if you think the complaint could have serious consequences for your business. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.


Q35:What should I do if I receive a letter before action about a nuisance caused by my home business?

You should take a formal letter from a neighbour threatening legal action about a An interference with a person's enjoyment and use of their land. very seriously.

If your neighbour wants to start formal legal proceedings against you in relation to their complaint, they must first send you a formal letter threatening legal action, which will often be titled 'A final warning letter before legal action is taken. Also known as a letter before action.' or 'A final warning letter before legal action is taken. Also known as a letter before claim.'. You must act promptly if you receive such a letter.

See Complaints and demands for guidance on what you should do if you receive such a letter.