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Do I Need a Permission to Run a Business from Home?

The coronavirus pandemic has accelerated the move toward work-from-home. Many business owners and employees are working from home in the UK. Work from home arrangements provides more flexibility and convenience due to which the trend is likely to continue post-pandemic.

Business owners can run their businesses from home, but it is important to get relevant permissions to run a business from home. Here are some tips regarding the permissions required to operate a business from home in the UK.

  • Rental Agreement

    Rental agreements often have clauses regarding using a home as a business. You should read the rental agreement to know whether you are allowed to run a business from home.

    It is a good idea to contact the landlord, social housing provider, or letting the management agent know about the permissions regarding operating a business from the premises. Make sure that operating a business from the home does not constitute a breach of the lease agreement.

  • Mortgage Agreement

    If you have mortgaged property, you need to read the mortgage agreement clauses. Clarify with the mortgage provider about whether you are allowed to operate a business from home. Also, you should check the leasehold agreement to understand whether you can legally operate a business from home.

  • Certificate of Lawful Use

    Consider obtaining a Certificate of Lawful Use as per section 191 of the Town and Council Planning Act of 1990. The local council will issue the certificate after considering the nature of the business. This certificate will serve as an official legal document allowing you to use the property for a specific business purpose.

    But you should remember that the mortgage and tenancy clauses take precedence over the lawful use certification. You cannot operate the business from home even if you have the certificate in case the mortgage provider or landlord does not approve operating a business from home.

  • Business Rates

    You may also have to pay business rates for the portion of the property used as a commercial space. The Valuation Office Agency or the local assessor in Scotland will decide the rateable value for the property. You will still have to pay Council Tax on the property.

  • Operating a Business from Garage or Shed

    Most tenancy and mortgage agreements generally allow business owners to operate a business from a garage or shed. But you should still check with the local council about the permissions for operating the business from the shed or garage.

    Make sure that you contact your local council for setting up a business from home. The local council representative will guide you regarding relevant permits required for operating a business from a garage or shed.

    Contact us at if you want to convert your business to a limited company in the UK or you would like to form a new company limited by shares or guarantee.Our experts will happily help you with the process.

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