Category: Starting a Business News

This week David Cameron announced legislative changes which will make running a business from home simpler.

The measures to help those working from home include the following:

Business rates

Guidance for new business rates will be created which will clarify that, in the majority of circumstances, businesses being run from home will not attract business rates. It can be a major concern for homeowners that if they start to set up a small business from home, then they may become liable to pay business rates. This is usually not the case.

Running a business from a rented property

New laws will be introduced to make it easier to run a business from a rented home. Currently, some tenants experience problems setting up a business from home as their tenancy agreement forbids a business being run from the property. A new-style tenancy agreement will be made available for landlords, so that landlords can allow their tenants to run a business from home without it undermining the tenancy agreement.

Planning permission

Planning guidance will be revised to make it clear that planning permission isn’t normally needed for running a business from home.

1 in 10 residential properties house a home business

The government’s announcement follows research by the Department for Business, Innovation and Skills (BIS) and Enterprise Nation. According to government figures, 2.9m businesses are run from home and contribute £300bn to the UK economy.

When discussing the new measures David Cameron said, “I want us to be a nation of entrepreneurs that really respect entrepreneurialism and enterprise, something that we imbue in young people in our schools. I want this to be the best country in the world to start, to run, and to expand a new business. We are still some way away from that.”

The government figures suggest that around 70 per cent of new businesses start off in the home. Cameron wants that fact to be appreciated and encouraged:

“Sometimes when people think of home business they think of some cottage industry on the edge of the economy. 70% of new businesses are home businesses – the scale is immense.”

Further legislative changes

Business Minister Matthew Hancock also mentioned that further law changes are to be looked at, including  enabling home business owners to offer apprenticeships.

Help from Lawpack

Lawpack’s Working from Home Kit can help you with the practical and legal issues when you’re starting up a business from home. It includes expert advice on how to comply with health and safety legislation, plus it outlines the legal obligations involved, from getting insurance to paying council tax.

Published on: August 18, 2014

The recession that is currently plaguing the UK brings with it opportunities to be innovative, creative and to ultimately make new businesses work in the specific financial environment the country finds itself in right now.

While some industries and markets are understandably suffering significantly in the midst of the economic downturn, there are others that provide wonderful chances to succeed. As such, it could be the perfect time to start thinking about launching your own business. However, rather than diving in headfirst all alone, it can pay to set up a joint venture with a friend, family member, associate or simply somebody with a similar business plan to your own.

Of course, the question you are sure to be asking yourself is why should you give up 100 per cent control of your fledgling business and share the rewards with somebody else? Well, when you think about it, there are numerous advantages to pairing up compared with going it alone.

Firstly, the capital you have available to you as a duo will be much larger. Rather than relying on your own savings and funds, you will have somebody else to contribute. The result of this is that you are in a position to spend more heavily to get things up and running. Whether you want to buy new equipment, pay staff or splash out on an advertising campaign, it all costs money and having as much as possible during the expensive start-up period is a massive bonus.

On the back of this, you will incur less risk when starting a joint venture as opposed to a solo business. Understandably, the profit will be halved between you and your business partner, but on the other hand you do not have as much to lose.

A particularly good idea can be to team up with somebody or a business from another sector, ideally another country. This will hugely increase your marketing potential and immediate audience, as you can launch in more than one area simultaneously.

By working with your partner, you will also find you benefit from his or her ideas and knowledge. Should you set up a business on your own, you might become set in your ways. It may come as a shock, but your plan is not always the best one, so having somebody else to run things past who contribute their own suggestions is a shrewd move.

You might even find that your talents lie in different areas. While one of you might be talented when it comes to book-keeping, the other could well be an advertising guru. Straight away, these are vital positions that you can each fill rather than having to employ somebody else.

No option is likely to tick every single box for you, but as a relatively low-risk and beneficial plan, thinking about a joint venture is surely a good move. So make your first steps towards a joint venture today and benefit from its numerous and substantial advantages sooner than you think.

For more information, you can acquire our Joint Venture Agreement, bringing you one step closer to setting up a business in partnership with another person or company.

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• How to draw up a joint venture agreement

 

Published on: July 31, 2012

One of the first steps you are best advised to take when entering into a business partnership is drawing up a business partnership agreement.

This applies to businesses operated by two or more parties and although it can be drawn up at any stage during the company’s lifespan, it is best written before problems or conflicts arise.

How a partnership agreement helps your business

A business partnership agreement sets out the provisions surrounding profits and shares and what percentage each partner takes. It further outlines each party’s responsibilities so that you are covered when a dispute emerges.

It is in addition to the Partnership Act 1890, which is a one-size-fits-all approach to partner protection. Under this Act, all partners are entitled to share the profits equally. This may not suit a company where one party has invested more in the project than the other.

Another stipulation of the Act is that all partners are jointly liable for mishaps incurred by the business. This is again problematic where one party incurs more detriment than another.

It further states that any party can terminate the partnership at any point just by giving notice to other relevant parties and the business partnership is dissolved if a partner dies.

Similar provisions cover how much say each party has in the running of the company and, as such, it becomes increasingly clear why this Act can be too general for many companies.

Meanwhile, a business partnership agreement gives you the freedom to determine who is responsible for what, and how much profit each interested party is entitled to.

Under this agreement, you also have the opportunity to decide when and how profits are paid according to what suits the needs of all the interested partners.

It also helps you determine what will happen to the company if one party leaves, while taking into account who should take the brunt of losses, where necessary.

How to draw up a business partnership agreement

The first step in drawing up a business partnership agreement is deciding upon a name for the company, before which you should ensure that the name is not already taken.

Next, you must outline who will contribute cash, property or services to the company before it opens. It is at this point that you will decide what ownership percentage each party will have.

You must then decide if profits will be divided according to the percentage stake each partner has in the business. Consider which party, perhaps all, will be entitled to a regular draw, or whether profits will be handed out at the close of the financial year. This is of particular importance because profit is an area where disputes often occur.

If you want to counteract the stipulation in the Act that says any partner can bind the partnership without the consent of the other parties, you must put this in the agreement. Otherwise, the rule stands.

Decision-making is paramount in business and just what constitutes a big or small decision can be an ambiguous process. As such, your business partnership agreement should make clear what big and small decisions are, as well as how decisions should be reached. You might, for instance, decide unanimous decisions are appropriate for bigger matters, while each party can take the initiative on smaller issues.

Management duties have to be met and just who takes on which responsibility is important to outline. It may seem obvious who takes care of customers, but it is still best to put this in your agreement to cover all bases.

The agreement should also determine an admission process for new partners, as well as detailing the process for the departure of a party. The latter should include a reasonable buyout scheme.

Lastly, when a problem does arise, you need to decide what the best tactic for overcoming it is. As such, set out in your agreement whether arbitration or mediation should be employed to avoid going straight to the courts.

Get your business partnership in writing easily with Lawpack’s solicitor-approved business partnership agreement.  

External links:

• Business Link: Partnerships

Published on: November 21, 2011

by Daniel Jones

Current conditions in the UK make now a great time to set up a limited company and invest in business, Wisteria Chartered Accountants has suggested.

With unemployment on the rise, now is the ideal time to set up a business and become self-employed, while also benefiting from the skills of those who are out of work.

The company also proposed that tax schemes in the UK create favourable conditions, with national insurance exemptions up to £5,000 benefiting those who start operations outside London and the south-east.

Nick Tagg, director at Wisteria Chartered Accountants commented: “The new national insurance scheme brought in is potentially highly beneficial to anyone who takes advantage of it.

“The downside is that these benefits don’t extend to the south-east, where unemployment is still very significant.”

Latest unemployment figures show that 2.51 million people in the UK are currently out of work, meaning the jobless rate stands at 7.9 per cent.

• Limited Company News: Lawpack’s solicitor-approved Limited Company Formation Kit includes template forms and expert guidance to help you form a limited company easily.

 

Published on: October 5, 2011

by Sarah Ashcroft

Businesses have been reminded that they may be held responsible for the wellbeing of employees who work from home.

Bar Huberman, exployment law editor at XpertHR, said employers are obliged to take reasonable care of the health and safety of their employees, and this home workers enjoy nearly the same level of legal protection of those working at the company’s premises.

Employers will need to establish that the home environment is at the very least suitable for work.

“Suitability includes things like space, workstation, monitor and arrangements for storage, and it might, depending on the role, involve sending a health and safety inspector to the employee’s home,” added Ms Huberman.

This employment law advice may be particularly pertinent during the run-up to the 2012 Olympic Games, when tens of thousands of City workers are expected to be asked to work from home or work flexibly to avoid road networks becoming over-congested at peak times.

• Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: August 23, 2011

Demand for advice on working from home could soon be on the rise, as one expert predicts a boom in the employment trend over the coming years.

Matt Oakley, chairman of the British Council for Offices research committee, said that home working is a good way for companies to hold on to their most valuable staff.

“It is more about employers giving their employees the opportunity to work from the best possible place, whether it be at a desk, from one office or a number of offices,” he explained.

Mr Oakley pointed out that that there will be more “flexible and multi-locational workers” as the amount of employees expected to be at their desks five days a week is in decline.

Liz Morris, director of consultancy and training at Working Families, recently suggested that flexible working conditions are just as important for bosses as they are for their workers.

• Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: July 25, 2011

Younger generations may be likely to go in search of business advice for working from home, as they realise the benefits of flexible arrangements.

This is according to director of research at the Telework Association Peter Thomson, who explained that people are fed up of the daily commute to their place of employment.

He continued: “This is a generation who are green-conscious, who are taught environmental studies at school, and are quite rightly saying ‘Hang on – you, my parents’ generation, have polluted the planet’.”

Mr Thomson emphasised that people are therefore looking to cut down on travel and carry out as many tasks as they can without having to leave the house.

His comments follow the release of the CBI/Harvey Nash Employment Trends Survey, which found that 96 per cent of employers offer some sort of flexible working.

Many of them revealed that this has helped to boost their employee relations.

• Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: June 28, 2011

The end of the recession has led more people to go in search of advice for self-employment, as they express a desire to be their own boss.

This is according to Stuart Curtis, head of commercial business insurance at Lloyds TSB Insurance, who highlighted that the recession has led people to reconsider their career options.

He continued: “This new breed of entrepreneurs needs to ensure they’re not caught out when trying to cut costs, and that their property, stock and equipment are adequately covered.”

Mr Curtis emphasised that some businesspeople are not aware of the risks they are exposed to when starting up their own company, so therefore do not have the necessary cover in place.

A recent poll from Lloyds TSB Insurance showed that 5.9 million businesses across the country are home-based, with 27 per cent of them established over the past year.

• Self-Employment News from Lawpack: legal forms and advice for self-employment and working from home.

 

Published on: June 6, 2011

People who seek advice for working from home will find there are a number of benefits from not going into the office during the week, an expert says.

Peter Thomson, director of research at the Telework Association, explained that people who work from home often find themselves financially better off.

With petrol prices and rail fares both on the rise, employees may find they are making significant savings, said the expert.

“If they don’t have to travel to work four days a week or they can stay at home one day and work from there or perhaps work compressed hours,” he explained.

Mr Thomson highlighted that employees may also find they are less stressed than if they were working in the office.

Working Families and Lancaster University Management School recently claimed that fathers who are able to work from home often enjoy healthier and happier lifestyles than those who commute to their place of employment.

• Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: June 6, 2011

Fathers who have sought advice for working from home are more likely to benefit from better health than those without flexible arrangements, new research has shown.

The Working for Fathers findings from Working Families and Lancaster University Management School determined that both physical and psychological health is better in men who work from home.

In addition, they were found to be less stressed and more committed to their employers than workers who permanently operate from an office.

Working Families chief executive Sarah Jackson emphasised that the more involved in family life that fathers are, the happier they generally tend to be.

“We welcome government proposals to increase parental leave for fathers and to extend the right to request flexible working to all employees,” she added.

Research from the Trades Union Congress recently found that homeworking stalled while the UK was in recession.

• Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: May 31, 2011