More than half of the UK’s small businesses now operate from home, according to research from Direct Line for Business (DL4B). The 2.5 million home business owners account for 52 per cent of all small businesses and eight per cent of the total UK workforce.
DL4B’s analysis of data from the Office for National Statistics demonstrates how businesses are evolving in response to a challenging and uncertain economic climate. It credited an increasingly digital, mobile – and therefore flexible – working landscape, for helping many individuals take advantage of a better work-life balance by setting up their own business from home. Many were also successful in transforming a hobby into a potential career.
The data also found that:
- home-businesses span the e-commerce, travel, marketing, recruitment and legal sectors
- the number of businesses operating in the catering, photography, hairdressing and arts and crafts trades increased
- the South East and South West had the highest concentration of home business owners
- Wandsworth has a particularly high concentration of home business owners for the capital
- there are more than double the amount of men running their own business from home compared to women, with 1.7 million male business owners versus 818,000 female.
One important aspect to consider when starting a home-business is insurance, particularly when storing stock at home. DL4B found that three in four home businesses kept stock worth £4,388 on average on their property. Another priority for home workers is sorting out their tax arrangements. It’s important to remember that if you set up your own business, or work on a freelance basis, you’ll need to complete a self-assessment tax return.
We can help with self-assessment. Get in touch to find out more.