Home business start-ups encouraged

Home business start-ups encouraged

 

Entrepreneurs will be given more freedom to start and grow home-based businesses, the government has announced.

Home-based businesses contribute £300 billion per year to the economy and around 70% of new businesses now start at home.

The Department for Business, Innovation & Skills has announced a series of new measures to encourage people to start up in business from their homes. The government wants to make it clearer that:

residential tenancy agreements should not be affected by home businesses in rented homes

planning permission is not normally needed for home businesses

home businesses will not usually attract business rates.

New legislation and a new model tenancy agreement will be produced to make the process easier for landlords and tenants in rental properties.

Nigel Holland from Holland & Co Chartered Accountants said:

“Many businesses start up from home, this way the costs can be kept to a minimum. There is often a great deal of red tape which restricts people from starting a business from home, however, many entrepreneurs successfully ignore this red tape and manage to get their business up and running in any event.

It would be a great help for new start up businesses if these new measures were introduced which made sure that the majority of home businesses are exempt from business rates.

The new start up businesses which operate from home help to bring a lot of income into the economy and their value should not be under estimated.”