using your house address as business address

[aoxk61]

Hi,

After spending 4 months on my own building an e-commerce site , i have finally contacted a distributor to open a trading account with them.

However, I am a little bit iffy about putting my house address as my business address because I heard from someone that if I do this, I could have problems if I was to sell my house such as having to pay tax for the amount my house sells for.

I just wanted to know whether this is true or not? I live in the UK.

Thanks for your help.

[Fiona_Fell]

Though based in Australia, I have used my post office box address listed both online and within business relationship documents etc. agreements, contracts etc.

Predominantly working in web site design and development, most people have never had any great concerns about working with me, I don't have an office, so no 'physical' address for my business.

Within Australia, and perhaps the UK, having to pay tax on the property in which you run your business, only applies when the residence is actually accounted for within your records as a business asset...the business owns the residence...not just uses it as a base or headquarters.

You may be able to take this info and consult a business advisor/legal representative, or your local friendly accountant about how it would apply to your personal situation.

Fiona

[Joyous]

Provided that no part of your house is used exclusively for business then running a business from home should not cause you any tax difficulties when selling your home. If for example you are using a spare bedroom as an office it’s advisable to have say a sofa bed in there so that the room doubles as a guest room. Either that or stick your children’s toys/ golf clubs/ record collection in there so that the room has some use other than that of an office.

Regards

Joy

[timd1230]

Yes the advice above is spot on

Tim

[Barry Larson]

Here is an interesting add-on to the previous comments.
I have my company registered at my home address, but our trading address is in an office location.
I also have a room in our house in which we have one of the family computers, the scanner, our library and other bits and bobs of non-work related things. I do work on the family computer, but I also do lots of personal things.
I had always thought this left me in the clear. Since the question has been asked, does everyone else think I am in the clear or should I change anything?