Car – when using your own car for business purposes, English law provides for a tax-free allowance. In 2019/2020, the rates were 45p per mile for up to 10,000 miles, and 25p after that. Different charges may apply for other types of vehicles.

Property – it is perfectly fine to start a business from your own home or property. Here are a few things you might need to consider:

• If you are renting your property, you will likely need to get permission from your landlord to start a business in the property. To start with, you should check the terms in your tenancy agreement to see what it does and does not allow. The good news is that your landlord can’t unreasonably refuse permission for you to start your business in your property if you ask for it.
• It may help to write to your landlord or give them a call to discuss your proposal.
• You will need to pay business rates on your council tax if your property becomes more of a business premises than it is residential (i.e., if you use a significant portion of your property for your business or your customers come to your property, etc.)
• There are various insurance protections that it may be advisable to take out. These are considered further in the Types of business insurance section.

Next up: Paying yourself from the business