There could be tax implications for business owners who switch from working in an office to operating from their home, a new report has suggested.
The Telegraph reported that many business owners were now considering relocating to their home in an effort to reduce costs.
Indeed, Business Link in London director Fran Currie confirmed that people starting businesses often opted to work from home as a way to keep initial costs down.
However, Ms Currie did acknowledge that there were problems with working from home. She noted the “possibility of domestic distractions” and the “loneliness”.
The paper also suggested that there could be some serious taxation implications for those people opting to run a business from home.
It explained that one of the key questions anyone considering ditching the office for the living room should consider was: “Are you paying the right amount in terms of income, VAT and possible Capital gain Tax?”
Ms Currie concluded to the publication: “It is crucial that home business owners are confident that they have asked themselves all the right questions and can tick them off the list.”
Recently, the Times reported that people considering starting small businesses should get help from accountants when they begin trading.
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