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Home based working

This article summarises the main aspects of homebased working.

 

What is home based working?

 

  • Working from home is using your home as the base for your job, but often having an office or colleagues that you check in with regularly. 
  • Working at home is carrying out your job, providing a service or dealing with customers in the same place as you live.  

Why choose home based working?

  • For some people it’s a lifestyle choice, giving you the chance to fit other interests and commitments around work.

  • Others want to make some extra cash in the evenings or at weekends

  • Increasingly, it’s company policy to outsource work, or to encourage hot desking or time-sharing desks.

What are the benefits to you?

 

You can:

  • choose your own hours and work when you work best

  • arrange work around family commitments, save time and money on travelling to and from work

  • save money on work clothes and other expenses 

  • be available during the standard working day for childcare or appointments 

  • if self-employed, save the costs of commuting, and of renting, heating and maintaining separate office accommodation

  • if you are self-employed you can treat a proportion of your house-running cost as business expenses and offset it against profits when calculating tax.

 

What’s in it for your employer?

 

Companies or public service organisations can:

  • modernize the way they organize work
  • achieve a happier work force who are better able to balance work and home life
  • keep trained and experienced staff who might otherwise leave, for example, to look after a family
  • employ a wider range of staff, for example people who are disabled, are carers or live outwith travelling distance
  • respond more immediately to changes in the demand for goods or services by varying the flow of work to individuals
  • save on office space and possibly locate staff nearer to clients. 

Often homeworkers are more highly motivated, because they value feeling independent and in control of their work.  

 

Is there a downside? 

  • It's not always easy to separate work and family life.
  • You need to be self disciplined, establish a work pattern that suits you and stick to it.
  • You may well find you miss having colleagues, for social as well as work reasons.
  • If you are working freelance or are self employed, networking and making contacts is essential, but not always easy if you live far away from a commercial centre.
  • Negotiating fees for your product or service can be difficult if you don’t have going rates to compare with.
  • If you are an employee, it can be harder to maintain a long distance relationship with your line manager.
  • You may also miss being able to compare your terms and conditions with colleagues and risk being exploited.
  • You may miss out on promotion opportunities.
  • Depending on what you do, work and income may not be guaranteed.

If you want to work from home, and you need to look for a job, you must: 

  • beware of scams and "get-rich-quick" schemes which are often based on the principle of pyramid selling or chain letters
  • never pay an organisation in advance to get work you can do at home.

 Issues to consider when you are considering homeworking

 

You should check the following:

  • who will provide furniture, equipment and communication systems
  • health and safety arrangements
  • security of information
  • expenses and allowances: home heating and lighting, travel expenses
  • tax and national insurance contributions
  • personal and professional support, to make sure you do not become too isolated. 

Ways of homeworking


These are varied, but include:


Outworking

Outworkers are often casual staff who do not have a contract with an employer.

  • You work at home to produce a product or provide a service.
  • Your employer supplies the materials and markets the product.
  • The most common work is simple assembling, envelope stuffing or packing.
  • Traditionally this work is relatively poorly paid, involving piece work.

Teleworking 

 

This is a growing area, with over 2 million people in the UK using information technology to help them work away from the traditional office environment. These workers usually have a fixed term or permanent contract with an employer.

 

Your employer provides the technology, the furniture and equipment to enable you to:

 

·         work at home full time or part time

·         divide your time between the office and your home

·         use your home as the administrative base for your job

·         access company databases and applications

·         communicate with your base.

 

Self-employment

 

Many entrepreneurs start off their businesses on a small scale by operating from home.

  • You can save on renting premises.
  • You are not committed to a tenancy agreement should your business fail to grow.

Freelance

 

You work independently, usually on a self employed basis, selling your services to individual clients or customers.

 

·         You rely for your income on establishing regular business from a circle of clients or customers.

·         Your income will fluctuate and is usually heavily controlled by the demands of the client.

 

Some jobs cut across the categories, for example sales work. Although you are part of a large organisation you tend to work as if you were self-employed.

You often:

·         depend on commission for the bulk of your income

·         have to find and maintain your own customer base

·         pay for your own training.

 

What does it take?

 

To be a successful home worker you need to be:

·         well organised and  self-motivated

·         resourceful and flexible

·         assertive

·        willing to take calculated risks.

 

You should preferably have one room, equipped with power points and telephone point to use as your office or work space.

 

The law and homeworking

The 2003 Employment Act supports homeworkers in the following ways:

  • parents of children under 6 or of disabled children under 18 have the right to request flexible working including teleworking 
  • your employer must give reasonable grounds for refusal
  • you can appeal against a refusal
  • homeworkers can claim tax allowances for domestic expenses such as heating and light bills.

You can get specific guidance on teleworking from the Department for Business, Enterprise and Regulatory Reform (BERR). It covers issues such as:       

·         health and safety, particularly in regard to electrical equipment, workstations and risk assessments

·         expenses, allowances, taxation and insurance

·         recruitment, training and career progression

·         personal support for employees

·         security of information.

A booklet 'Homeworking: Guidance for Employees on Health and Safety' can be downloaded from the website: http://www.hse.gov.uk/pubns/indg226.pdf  

The National Minimum Wage

You are entitled to be paid the National Minimum Wage (from October 2008, £5.73 an hour for those aged over 22).

Data protection

 

If you keep computerised information about any living person you are usually required to register under the Data Protection Act.

 

Your property

  • Check your title deeds and ask your landlord or landlady or mortgage company if there any restrictions on working from home.
  • If you are thinking of altering your home, check with the local authority planning and building regulations departments.
  • Contact your home insurance company to see if working from home will affect your premium.
  • Check whether you need to pay business rates rather than Council Tax on the part of your home used for work.
  • If you employ staff or bring members of the public into your home, check with the Fire and Rescue Service and with the Department of Health and Safety.

Insurance

  • Insure all your work equipment fully.
  • If you employ staff you will have to take out employer’s liability insurance.
  • If you are self-employed you will be responsible for your own National Insurance contributions and for calculating your own income tax and VAT.
  • You may be entitled to earnings-related sickness benefit if you are ill.

Useful contacts

For information on all aspects of working from home, including suggestions for getting started and other advice and support, the following sources can help.

Enquiry Unit

Department for Business, Enterprise and Regulatory Reform (BERR)

1 Victoria Street

London

SW1H 0ET

Tel: 020 7215 5000

Email: enquiries@berr.gsi.gov.uk

Web: http://www.berr.gov.uk

 

Internet Homeworking Directory
Useful guide, warning of hazards and pitfalls. 
Web: http://www.homeworking.com

 

The Telework Association

Europe's largest teleworking organisation with over 7,000 members - publishes the Teleworking Handbook, £16, free to members.

Tel: 0800 616008

Fax: 01453 836174

Email: enquiries@telework.org.uk

Web: http://www.telework.org.uk

 

Your Local Business Gateway
Advice on starting your own business, including homeworking
Tel (throughout Scotland): 0845 609 6611 
Web:http://www.bgateway.com/