Storing of stock.

[Raggle Taggle Gypsy]

I am a sole trader mainly selling products online. I have my landlords permission to keep a small amount of stock in the flat I rent from him.

There are several hypothetical scenarios.

1. I do not let customers visit the flat. Generally they buy online and I mail things out to them. This year I have let 2 customers call to the flat. Have I broke any laws ? Should I look to meet them away from home in future ? Maybe visit them at their homes.

2. I also have some space in other peoples outlets in the town where I live where they sell my items for me. They take a 25% commission from me on sales. I keep a small amount of stock in my flat which I then take to the shops for them to sell on for me. Generally when stock arrives it goes straight out to the shops, but occasionally I hold a small amount of stock to replenish when they sell out. Am I breaking any laws by holding stock in my home ?

3. Recently I had a stall at a couple of markets. I kept stock in my home and then took it to the market to sell.

4. Am I legally obliged to have contents insurance for any stock I hold ?

Looking at all 3 scenarios. Am I acting legally in holding stock in my home. Should I be looking to buy storage. All stock is legal UK goods. Nothing highly flammable or dangerous, hazards etc.

 

[Scalloway]

There are 3 areas you need to consider when storing stock at home

1. Permission of landlord/mortgage provider. You have that
2. Insurance - you arte not legally obliged to have insurance but if you don't have it and something happens you may find yourself severely out of pocket.
3. The local council. They will not be looking out for your type of business but they will have to respond if a neighbour complains. A customer or delivery van viviting now and again shouldn't be a problem. But if vehicles are stopping your neighbours parking and causing noise disturbance then you may have a problem.

 

[Mark T Jones]

The only types of insurance you are legally obliged to hold are motor and employers liability (I think that applies if you have 4 or more employees - I’m not an expert)

however, there is a strong chance that you are invalidating your home and potentially motor insurance by not disclosing your business activities.

you are also wide open to public liability claims by having customers visiting you, or by visiting agents in a business capacity

 

[Scalloway]

employers liability (I think that applies if you have 4 or more employees - I’m not an expert)

Employers liability is legally required for just one employee. 4 or more employees applies to health and safety.

 

[Raggle Taggle Gypsy]

Cheers Guys,

I spoke with my landlord this morning and he confirmed he's more than happy for me to keep some stock in the attic room.

In terms of deliveries, I would estimate in a full year I get 25 deliveries. The delivery van parks for a matter of minutes, drops a parcel and goes again. If deliveries were an issue I could have them sent to my parents.

My Car insurance has business use. Ive always had business use as I used to transport people about in my old job. Ive kept the business use on the Policy but will ensure I speak with the insurers at the next renewal which I think is only weeks away.

I dont have any employees and if I did in future I would probably ask them to work from their home address.

Can anyone forsee any other issues, and offer any solutions ?

 

[obscure]

What about you home insurance? As mark pointed out this can be invalidated if you use the premises for business and, in addition, the stock would not be covered.