How do I ask for permission to run a business from home?
You need to write to us and ask for permission. You can do this by simply filling out the form below.
If we need more information, we will let you know what this is. We will usually do this in writing (including email, if you prefer).
Things to consider when running a business from your home
It is your responsibility to:
- consider what business rates may apply
- ensure that you have the correct insurances to run your business
- inform DWP about your business if you currently receive any benefits
- not allow your business to cause a nuisance to others or breach your contract in any other way.
A business could impact any benefits you may receive
Running a business from home can affect your benefits, potentially impacting your Universal Credit or other social security payments. Income from self-employment, including profits from your home-based business, will be considered when calculating your benefit entitlement. However, you may also be able to claim certain business expenses against your income, which could reduce your taxable income and potentially increase your benefits.
Universal Credit: If you are receiving Universal Credit, your income from self-employment will be included in the calculation of your total income. The Department for Work and Pensions will assess your self-employment income and other income to determine your final payment.
Expenses and deductions: You can claim certain business expenses, like a portion of your council tax, utilities, or home office expenses, to reduce your taxable income. This can lead to a lower tax bill and potentially a higher benefit payment.
Running a business from home could also affect other benefits you might receive, such as tax credits or housing benefit, as these are also based on your income.
Losses from self-employment: If you make a loss from your business, only your employment earnings will be used to calculate your Universal Credit payment.