Brand new legislation promises a decrease in running and start-up costs for home run businesses.
The government has announced a change in legislation that is set to support home based businesses. Entrepreneurs who work from home will now be exempt from business rates and will no longer have to seek planning permission when starting the company. The restrictions on running an organisation from a rented property have also been lifted due to changes within tenancy agreement law.
The government have given these businesses extra support due to their incredible growth in recent years, there has been an increase of 500,000 home run enterprises since 2010. Making it one of the fastest growing sectors in the UK, government officials hope that the support from the change in legislation will help to steadily continue this growth.
This change in law is part of a movement to encourage people to start their own companies. Currently home based organisations contribute £300 billion in annual turnover to the UK economy (BIS Business Population Estimates and BIS Small Business Survey). The government have taken away the barriers that might have otherwise prevented entrepreneurs from starting up on their own.
“It’s this spirit of personal endeavour and self-determination that is driving our economic recovery.” – Business Minister Matthew Hancock is certain that introducing this new legislation will generate an increase in the number of people starting their own companies from home.
Recent research by the BIS Business Population Estimates and BIS Small Business found that there are currently 2.9 million home run businesses in the UK, each of these businesses will benefit from the new legislation as well as any entrepreneurs who decide to take the plunge due to the new guidelines.
If you are an entrepreneur and this new legislation affects you or it has given you the inspiration to start your own company we are specialists in small business accountancy advice and would be happy to answer any questions you have. You can get in touch with us via our contact page.