Is running a business from a private residence legal?

betelgeuse

I'm aware of a situation where an electrical contracting firm (don't worry, no names) is being run out of a private residence, a two bed apartment. Now I haven't been inside but from the outside it looks very much like an office with 'corporate'-style blinds etc. Also there are two or three company-branded vehicles in the (private) car park most days, and at least three or four staff (I presume) going in and out during the day.

So, my question is fairly simple: is this allowed? I'm clueless when it comes to the law in this area, so any advice would be very much appreciated. And who would be the right people to contact about this, if needs be? I'm thinking either Revenue or the Dept. of Enterprise, Trade & Employment?

(Oh, in case people are wondering why I care.. let's just say the guy in charge of this company has developed a reputation for being rather, um, uncooperative when it comes to communal living issues. What goes around comes around and all that.)

aphex™

Probably an issue for the county council if the flat only has planning permission as being a home rather than a business. Try the planning office of the council.

hmmm

The county council may also want to levy rates on the premises (if they haven't already).

ISI

Payment of rates is definately an issue in this situation. It's most certainly NOT illegal to run a business from your home - many companies use the owners home address as their registered office and plently operate all business activities from same.

Your neighbour should have informed his local authority of the "change of use" of the property and should be paying (much) higher rates because of this.

Planning permission i'm not sure about as there's no change to the outside of the property and (he will claim) that the public (his customers) are not entering the location.

It's your local authority you need to get onto anyway as has already been said above.

frobisher

Planning can be an issue. I used to rent an office that was a ground floor apartment. The thing about it was that the guy who owned it was a retired planner and he knew the rules inside out and he told me that everything was above board because he had received planning for a dual commercial/residential unit.

Victor

ISI wrote:

Planning permission i'm not sure about as there's no change to the outside of the property and (he will claim) that the public (his customers) are not entering the location.

The staff are and unless all staff are resident family ....

information

Tell the management company he is running a business from the appartment.

It is probably a breech of the buildings insurance to run a business fom a private insured residence therefore
if building burn down they would not cover it,
and
issues with staff and customer in regard to public liability.

that should get them to take action pretty sharply.

You could contact the ODCE if he dosen't have company name on building, but they are toothless. but it would get him worried.

Our man in Havana

OP: Is this really any of your concern?

Savman

I suppose it depends how commercial the activity is and how it affects the other residents. Many people who work from home do so with little more than a PC. That's not illegal and nor should it be.

However if this neighbouring business is doing all the day to day stuff of a bigger business then that's different. For example if they were using up residential car parking spaces or were generating huge amounts of commercial waste to the point it was making life troublesome for other residents. A little common sense should prevail IMO.

(Oh, in case people are wondering why I care.. let's just say the guy in charge of this company has developed a reputation for being rather, um, uncooperative when it comes to communal living issues. What goes around comes around and all that.)

Not liking somebody isn't reason enough to try sabotage their whole business. I'm speaking from the other side of the fence here

Of course if they are flouting the rules/laws then you should invesitage further.

karangka

You might want to consider future tax implications if you are planning to sell the property in future. (PPR relief)

is_that_so

That sounds like a change of use. I believe that needs planning permission.

axer

betelgeuse wrote:

I'm aware of a situation where an electrical contracting firm (don't worry, no names) is being run out of a private residence, a two bed apartment. Now I haven't been inside but from the outside it looks very much like an office with 'corporate'-style blinds etc. Also there are two or three company-branded vehicles in the (private) car park most days, and at least three or four staff (I presume) going in and out during the day.

So, my question is fairly simple: is this allowed? I'm clueless when it comes to the law in this area, so any advice would be very much appreciated. And who would be the right people to contact about this, if needs be? I'm thinking either Revenue or the Dept. of Enterprise, Trade & Employment?

(Oh, in case people are wondering why I care.. let's just say the guy in charge of this company has developed a reputation for being rather, um, uncooperative when it comes to communal living issues. What goes around comes around and all that.)

My understanding is that you can use one room of your house for a home office without the need for planning permission. You cannot have a nameplates or advertisements on the building of course though. I think it would be different if the apartment was being used as a workshop or a retail unit as that would be a "material change of use" or the examples Galway County Council give - "changing any premises to a fast food takeaway, changing a warehouse to an industrial use". Granted you could argue that it is having an impact on his neighbours which would then necessitate the need for planning permission but I doubt the impact this contractor is making is significant enough.

BTW OP, there's no need to be an a$$hole to someone just because you don't like them or don't see eye-to-eye on things.

muffler

Yes, I agree with the above - no planning is required providing the main everyday use of the building is a dwelling/apartment and of course subject to no signage etc.

blue4ever

Above is true – recent first hand experience of same – however, if you claim ie you decide to claim 20% (relative size of business to residential) of your mortgage interest as a business expence – then just be aware that when you go to sell the house 20% of the house could be considered ‘business’ and thus be subject to CGT

betelgeuse

Haven't checked this thread in a while but thanks for all the replies, it's given me a lot to think about.

Bond-007 wrote:

OP: Is this really any of your concern?

Savman wrote:

Not liking somebody isn't reason enough to try sabotage their whole business. I'm speaking from the other side of the fence here

axer wrote:

BTW OP, there's no need to be an a$$hole to someone just because you don't like them or don't see eye-to-eye on things.

I expected replies like this. Answer is it wouldn't be any of my concern if the guy running the company hadn't verbally attacked me when I asked, politely, that his wife's '06 BMW X3 be moved from my designated car parking space. Anything I can do now to make life difficult for him (or better yet, ****-up his business) is worth it, at least for me.. chances are all I need to do is make a couple of phone calls to the right people anyway.

Savman wrote:

Of course if they are flouting the rules/laws then you should invesitage further.

Indeed, and I will. Thanks again.