Running a Collectibles Business from Home
The idea of working from home has become increasingly popular in recent years, with many people leaving behind the daily commute and 9-5 job to set up their own business. If you want to get into the collectibles business from home, there are a variety of things to consider to ensure that running a business from home is the right move for you.
Benefits of Running a Collectibles Business from HomeThere are a number of benefits in running your business from home. Most people consider it to simply escape the daily grind of working elsewhere, but other than that, there are tax benefits, income benefits and of course social benefits. If you set up an area in your home that is a dedicated business space, it means that you may be able to claim that a proportion of the expenses in your home are used for business and as such these can be deducted from your taxable profits when you fill in your self-assessment form. Not only that, but you will also be able to reduce your tax bill if you buy new equipment or invest in an office space at home, with tax relief being given on the first 50,000 GBP spent on assets. This is called capital allowance and being a home based business gives you access to these benefits.
As well as tax benefits, you will also find that being able to work hours that suit you, or fitting in your job around other commitments are extra advantages of having a business you run from home. Not having a shop front and all of the associated overheads that go with it can help you get your collectibles business off the ground too, giving you the chance to use your money for stock or a great website. It’s always worthwhile to consult a good accountant when it comes to tax as they’ll be able to work out what proportion of your expenses are taxable.
Disadvantages in Running a Collectibles Business from HomeIn order to be successful when working from home, you need to ensure that you’re the type of person who will actually take time to work! It’s all too easy at home to find alternative distractions, especially if you have family at home when you’re working. It can be difficult to separate your working space from your personal space, so make sure you have a dedicated area for your office. You’ll also need a large room to store all of your stock, if you’re in a small residence, this could be an issue. Some people also suffer from the lack of interaction and social aspects of working with others and can find running a home based business very isolating. If you think you’d prefer a more social job, running a business from home isn’t for you.
Planning Regulations for Business Premises at HomeWhen you register as a home business, you may be required to check whether you need planning permission from your local council. The rules can be extremely confusing when it comes to planning permission, so speak to an expert before investing or changing anything about your home for a business. Even putting a sign outside your home may require planning permission. If your stock is going to be delivered to your home, you need to check whether it’ll be arriving on large vehicles and if your premises are able to handle this. Causing a nuisance to others in your area may get you in hot water, so sorting these out at the beginning is important. As a side note, many companies won’t deliver to a residential address, so you may need to register your business at that address also.
Another check you must carry out, is a health and safety risk assessment to ensure there are no hazards or possible dangers to yourself or others. You need only write down the results if you employ more than five people, so if it’s just you, be aware of any issues and strive to fix them. Finally, check that your home and contents insurance will cover your stock, equipment and other items associated with your business. You may find that you need extra cover to keep your goods safe and your insurance company can advise you on this.