Beginner’s Guide on Starting a Home-Based Business in the United Kingdom

Starting a Home-Based Business in the United Kingdom

A home-based business is no longer synonymous to small profits and opportunities. In this day and age of Internet Technology, you can earn good with the right idea, even if you run a business from your premises. In this article, we discuss the things that you need to know before starting a home-based business in the United Kingdom.


What is a Home Based Business?

A home-based business is a business that is located in the owner’s place of residence. It is a small business with limited capital and investments and generally doesn’t load or unload things from bigger vehicles. Some examples of home-based businesses are small bakeries, tea shops, freelance jobs, etc.


What Qualifies for a Home-Based Business in the United Kingdom?

The above definition of a home-based business applies in the United Kingdom as well. You run a home-based business if you do its operations from your home.

Furthermore, you are categorised as a self-employed individual if you run a business from home. According to the government, you are self-employed if:

  • You are responsible for the success or failure of the business you run.
  • You have several customers at the same time.
  • You hire and pay other people to help you with the business or to do the work for you.
  • You can decide how, where and when to work.
  • You provide the main tools and equipment to do your work.
  • You are responsible for completing any unsatisfactory work in your own time.
  • You charge an agreed fixed price for your services.
  • You sell goods or services with the aim of making a profit.


Home Based Business Trends: Best Home-Based Businesses Ideas in the United Kingdom

You may find yourself searching for great ideas if you are thinking of starting a home-based business in the United Kingdom. Here are some of the best home-based business ideas in the United Kingdom:

Freelance Tech Services

You can decide to become a freelancer if you have any technical skills, like programming, graphic designing, or even content writing and marketing. Freelancers can make a lot of money if they have good skills and clients. If you are thinking of becoming one too, you can use freelancing platforms like Fiverr, Upwork, Freelancer, etc., to get started.

T-Shirt Printing Business

Fashion has always been an evergreen business sector, and it will always be so. No matter how fierce the competition is, there is always room for something new. And this something new can be your awesome t-shirt designs. A t-shirt printing design business only requires a printing machine, some designing skills and plain t-shirts, which makes the starting investment less than a thousand pounds.

Childcare Business

A childcare business can be a great idea for people who are good with kids. Many busy parents and guardians are constantly on the lookout for babysitters they can trust. On the other hand, you can also open a daycare centre in your home. With people being very busy with their jobs in the United Kingdom, you can expect a never-ending list of customers, which is, if your services are excellent.

YouTube Personality

Being a YouTuber has many perks- one of the most important being that you can start it from your home. All you need is a camera and some good content. Of course, there isn’t always a guarantee that you will break out in the scene as the ‘next big thing’. However, it isn’t impossible if you have a good idea. You can work for yourself and make huge profits on the way.

Home Bakery and Food Business

In the United Kingdom, there are stringent rules for any kind of business-related to food. For example, even to become a street food vendor, you will need to get several permissions, such as permission to sell while walking on foot, or permission to put chairs and tables in public. However, it is all good as they help to maintain the hygiene and quality of the food. However, you don’t need to worry since there are company incorporation services that can help with setting up your business at no time.


Steps for Starting a Home-Based Business in the United Kingdom

These are the steps you need to follow to start a home-based business in the United Kingdom:

Do Your Research

The first step is, of course, doing thorough research about the market. See the problems people are facing and the ones that you can quickly solve from your home. However, make sure to choose something that you will enjoy, as that is one of the essences of working from your home; stress-free.

Choose a Name

Choosing a name is easier said than done, but there are some things to keep in mind. Your business name can’t be offensive, and you can’t use a name that is already in the market. You can’t use trademarked names as well.

Since you are opening a home-based business, you may want to open a small website as well. For that, you may need to buy and register the domain name, the cost of which depends on if the domain is available and if it is a popular keyword.

Get the Necessary Permissions

You may have to get some permissions before being able to start your business.

  • If you live on rent, you need a written agreement from your mortgage provider or landlord.
  • If you want to major alterations to your home, you need permission from the local planning office.
  • If your business has a lot of customers or deliveries (for example, a home-based eatery), you will require permission from the local council.

Register Your Business

You may have to register your business based on your operations. For a home-based business, you need to register a sole proprietorship, which will give you the rights for all the company profits but will also make you liable for all the losses and debts. For more information, see: United Kingdom company registration.


What Licenses Do You Need to Run a Home-Based Business in the United Kingdom?

Aside from the permission to run a home-based business, you may need some special licenses for some work. The permits you need really depend on the type of your work, and so you may either need to do some research on your own or talk to a corporate service provider.

Here are some sectors that require special licenses and permits in the United Kingdom:

  • Food Business (Cafe, food truck, etc.)
  • Financial Services
  • Childcare
  • Farming Business
  • Scientific Research and Development
  • Petcare
  • Massage, etc.

While running a home business in the United Kingdom, you have to make sure that you are on good terms with your neighbours. In other words, your business shouldn’t disturb them in any way, and otherwise, they may file a complaint.

Running a home business can be a great idea both if you are looking for extra cash or to build a career from your residence. You can contact us if you have any inquiries about the article or the information. You can also talk to us if you want help regarding setting up your home-based business.

Starting a Home-Based Business in the United Kingdom