Who you must tell

Your mortgage company Offering B&B is generally against the terms and conditions of your mortgage, so you must tell your lender. Although Nationwide and Halifax claim to take a flexible approach, some lenders will refuse; while others may insist you move to a commercial loan, typically at least 2.5% above base rate.

Your insurer Household policies are unlikely to cover the use of your home for business purposes, or any theft or damage by guests. You will also need public liability insurance in case a guest is injured or their property is lost or damaged.

Ray Facer of Legal & General says different insurers will react differently to a customer's request to offer B&B. "If you simply want to let out the spare room for a few weekends a year we would probably consider it," he says. If your B&B plans are bigger than that, you will probably have to switch to a commercial policy.

The taxman If the Inland Revenue does not send you a tax return, and your B&B income is less than the £4,250 rent-a-room income allowance, you do not have to declare the income. If you do get a tax return, you simply tick the relevant box in the land and property section.

If you decide to deduct your running costs and pay tax on your profits, fill in the self-employed section of your tax return.

Your local authority You may require change of use planning permission or consent for signs on your property; policies vary from council to council. If you intend to offer short-stay accommodation for more than six people simultaneously, you must pay business rates.

The local fire brigade If you provide accommodation for more than six guests (or staff), or if the accommodation is above the first floor, or below the ground floor, you must obtain a fire certificate.

Environmental health department All B&Bs are required by the Food Safety Act to register (free) with the environmental health department of their local authority. There are a number of hygiene, labelling and temperature control regulations which may or may not apply.