Working from home

Working from home sounds like an attractive prospect – but have you thought through all the practical issues?

This guide will give you information and advice about:

Day-to-day issues of working from home

Once you have decided you want to work from home, there are many practical issues to address.

• Striking a sensible balance between life and work. Avoid the temptation to work long hours just because you are always near your work. Set limits, as you would if you were in an office.
• Avoiding distractions. It’s important to separate work from home life, even if they both go on under the same roof. Make sure your family is aware when you are working, and dedicate a certain part of your house to work, so that you can concentrate fully when you need to.
• Creating a professional image. If clients or colleagues are likely to visit, dress appropriately, and present a professional working environment to clients and colleagues. Consider setting up a separate phone line for business purposes.
• Finding enough space. If your property is too small to accommodate both your work and personal life, you may have to reconsider your plans.

Insurance

Valid comprehensive insurance will give you peace of mind by protecting you and your business from financial risk should disaster ever strike. 

• Your home contents cover will almost certainly need to be extended to cover work materials, computers and so on.
• Inform your insurers that you are operating a business from home and check that you are covered. 
• If you employ anyone at your home – even part-time – you must have employer’s liability insurance.
• You may need a specialised home worker’s policy that will cover you for business interruption. This would pay out for providing a temporary office if, for example, your home was flooded. Find out more about Lloyds TSB Home Worker Essential Business Insurance
• Consider taking out permanent health/accident insurance that will pay out a regular income if you are unable to work because of an accident or serious illness.
• You may be required by law to take out public liability insurance in case someone injures themselves while on your property. It’s a good idea to carry out a risk assessment of any areas the public will enter.

Legal issues

Depending on what sort of business you are running, there are a range of laws, rules and guidelines you need to be aware of. Here are the most important:

• Planning permission: check with your local authority whether you need planning permission to use your property for business purposes, particularly if it involves changes to your property.
• Employees' rights: the National Minimum Wage (NMW) and the Working Time Directive (which restricts the number of hours employees may work each week) may affect you if you employ staff.
• Disability legislation: the Disability Discrimination Act now covers small businesses. See www.dwp.gov.uk/employers/dda/
• Mortgage conditions. Check the mortgage conditions of your property to see if running a business is permissible, and inform your lender

Useful contacts

• Health & Safety Executive – www.hse.gov.uk  – information on home working and health and safety.
• HM Revenue & Customs – www.hmrc.gov.uk
• Federation of Small Businesses – www.fsb.org.uk – an independent lobby and advice service.
• Business Link –  www.businesslink.gov.uk – a self-help portal of action-focused information for small and medium businesses, linking to all relevant ministries and departments.
  

Home Worker Essential Business Insurance