2 Business out of Same Premises?

[Newbusinesss]

Where can I find information on the legalities and procedure for opening a 2nd business using the same premises as an already established cafe?
The 2nd business would be by different person just using the same facilities . Is this possible?
Thank you.

 

[YasmeenLondon]

There are no rules against having several businesses registered to one address, I can't post the .gov link here but try searching for "Check the rules for company addresses" and click on the first result.

Welcome to the forum.

 

[Mark T Jones]

If the premises are leased, the legalities may revolve around the terms of that lease.

There are potentially licencing or insurance implications but no specific law about running 2 businesses from one address.

 

[Newbusinesss]

Thank you. The property is owned not leased. It is run as a cafe during the day and we wanted to contiue operating it as a cafe but with another family member using the kitchen to run her own pizza takeaway in the evenings. Not sure of the legalities tax inplications of this ?

 

[Scalloway]

Get a lease drawn up detailing what is included in the rent and what your relative must pay themselves. The rent will be your taxable income.

 

[BobzYourUncle]

But how would you apportion the amount of gas, water and electricity used for the 2 business for accountancy purposes as well you both paying fairly.

 

[Gyumri]

Get a lease drawn up detailing what is included in the rent

It would not be a good idea to create a lease which is an interest in land but rather better to create a licence if needed which is personal to the other occupier.

But how would you apportion the amount of gas, water and electricity used for the 2 business for accountancy purposes as well you both paying fairly.

You would include it in the licence fee or check the meter readings using a torch.

 

[kulture]

It is not unusual for someone to rent out a commercial kitchen. This is presumably what you are talking about. The rent would be a cost to one business and income to the other. What precisely are you worried about?

You would need to let your insurance company know, probably find that both businesses would need separate public liability.


I suppose that the local authorities may want to know to ensure that both businesses have proper hygiene etc.

You may have planning permission problems. Hot food takeaway may need specific class of use different from a cafe.


You may need to ensure that your premises license covers the increased opening hours.

 

[Scalloway]

But how would you apportion the amount of gas, water and electricity used for the 2 business for accountancy purposes as well you both paying fairly.

I would do an estimate and include it as part of the rent. The agreement should have provision for adjustment up or down if the estimate proves to be wildly out.

create a licence if needed which is personal to the other occupier.

That may be a simpler, less expensive solution.

 

[Newbusinesss]

Thank you. Not sure I understand the rent idea. The concern was about the tax complications of running 2 seperate but similar businesses from the same premises. Would it be necessary to start 2 seperate Ltd, companies?

 

[Scalloway]

The 2nd business would be by different person just using the same facilities

I took that to mean that you would have no financial involvement in the other business, other than owning the premises, hence the suggestion of rent.

If you are going to own both the businesses then it needs a different approach. If you are a sole trader or operate through a limited company then the new business becomes part of the original. If you set up a new limited company then it is a separate legal enity. In that case you will need to look at disaggregation for VAT.

 

[Newbusinesss]

Just reviewing the regulations to even sell take away coffee in this country...What a beauracratic nightare. They seem overly concerned about safety. I had no idea drinking coffee was such a hazardous activity.

 

[ecommerce84]

Just reviewing the regulations to even sell take away coffee in this country...What a beauracratic nightare. They seem overly concerned about safety. I had no idea drinking coffee was such a hazardous activity.

What regulations specifically?

If you already run a cafe, you’re surely already selling takeaway coffee?

 

[JEREMY HAWKE]

The breakfast bar in the service stations becomes a Chinese after 3PM I love how they do that even the front of shop changes and it does work ?

 

[HFE Signs]

The question isn't really about rules, more about working out a set of rules you both agree on and then formalising them with help from a solicitor for the protection of both parties