Hi,
You have to inform your Mortgage Lender that you intend to work from home,(It has got something to do with your contents insurance )
I phoned my local council to tell them of my intention and as it was only me working from home i.e (not employing anyone) and the fact that I can only do one client at a time (so there wouldnt be any traffic build up or parking problems, there were no health and safety issues to address (this only applies where you have a workforce) I had to prove I was insured, I then had to put all this in writing, where they hold it on file, they said they only needed to come and see me if they recieved complaints from the neighbours (so I informed the neighbours and offered all the women a 10% discount) keeps them sweet you see. As far as business rates and tax are concerned I was told by my local council that business rates only apply to home business's where there is more business than house for example a BB, as I was only using one room this didnt apply (after all lots of people work from home in an office and dont pay business rates. I also registered with the inland revenue, you need to start paying your national insurance stamp (its about £10.00 a week) then they send you your tax forms once a year for self assesment, but keep all reciepts and appointment book, my accountant charges £170.00 a year to do my tax returns for me, I think you can earn £5,000 before you become eligible for tax anyway, and you can claim against all your purchases.
Hope this helps and Good Luck
Claire x