Can You Run a Business from Home

Can You Run a Business from Home?

The idea of working in your dressing gown, laptop on the sofa, kettle always within reach — it's no wonder so many people want to run a business from home. But is it actually allowed? The good news is: yes, you can run a business from home in the UK. The slightly more grown-up answer is: yes, but there are a few rules, caveats, and common-sense checks you need to know about.

What Does It Mean to Run a Business from Home?

Running a business from home means using your house or flat as your main place of work. That could be anything from freelancing in a home office to selling handmade products from your kitchen, offering tutoring from the dining room, or operating an online shop from the spare bedroom.

You're still running a fully legitimate business — you're just doing it without renting a separate office or premises. And with flexible working, remote tools, and a decent Wi-Fi signal, it's become more common than ever.

Is It Legally Allowed?

Yes — there's no law against running a business from home. But depending on the type of business you run, there might be some permissions and paperwork involved.

First, if you rent your property, check your tenancy agreement. Some landlords don’t allow businesses to operate from the property — especially if it involves customers visiting, noise, or equipment. If you own your home, check the terms of your mortgage — some lenders want to be informed, and some might even need written consent.

If you’re in a leasehold flat, the lease may include restrictions too. It’s not about being nosy — it’s about keeping the property use consistent with residential zoning.

In most cases, you won’t need planning permission unless your business changes the nature of your home. For example, turning your living room into a tattoo studio with a constant stream of clients might raise an eyebrow with the local council. Quiet, admin-based work? Usually no problem at all.

What About Tax and Business Rates?

If you're working from home, you can claim a portion of your household expenses — like heating, electricity, broadband, and rent or mortgage interest — as business expenses. HMRC allows a flat-rate simplified expense or you can work it out based on actual usage, whichever is more accurate for your setup.

In terms of business rates, most home businesses won’t have to pay them. You’ll still just pay council tax. However, if you dedicate part of your property entirely to business use (say, converting a garage into a salon), your local authority might consider applying business rates on that space. It’s rare, but not unheard of.

What If Customers Visit Your Home?

Some home businesses are purely online or remote, but others involve customers coming and going — like childminders, beauty therapists, or private tutors. In that case, you may need:

• Insurance that covers clients visiting the premises

• To inform your home insurer (your existing policy might not cover business activity)

• To consider health and safety obligations

• To check with your local council if you need any special licenses

Neighbours might also become a factor — if there’s a noticeable increase in noise, traffic, or parking problems, you could get complaints. It’s always smart to keep things neighbourly, literally.

Possible Advantages

Running a business from home can save you a fortune on office rent and travel. It’s convenient, flexible, and gives you control over your environment. You can scale gradually, set your own hours, and blend work with home life in a way that suits you.

It’s also a great way to test an idea before going all-in. If things go well, you can expand later — if not, you’ve kept your overheads low.

Possible Disadvantages

The biggest challenge is separating work from life. It’s easy for the boundaries to blur, and before you know it, you’re answering emails at midnight and using your kitchen table for both business strategy and cereal bowls.

There’s also a risk of isolation, distractions, and never quite switching off. If you’re growing and need to hire staff or store large quantities of stock, your home might not cut it long-term.

Finally, while home-based businesses are legit, some clients may still judge them differently — especially in sectors where a slick office still signals success.

In Summary

Yes, you can absolutely run a business from home in the UK — and many people do, very successfully. Just make sure you check your tenancy or mortgage terms, inform your insurer, and keep things compliant. It’s a great way to start small, stay agile, and make your business work on your terms — slippers and all.