UK businesses can save £1k a year

Energy wise, those who switch supplier could save an average of 30%, accounting to £293 on the average home based business bill.

In the last two years broadband costs have halved, so those sitting on an old contract could save £211 a year.

Darrell Sansom, managing director at AXA Business Insurance, said: “For growing numbers of people, home and business are now merged under one roof.

“And while there are undoubted benefits, it does mean a greater need to ensure the finances are looked after carefully to make the most of the household income.”

For those that do have insurance cover, shopping around could easily save 10%, which could mean a saving of £69 on the average total premium of £694 for business insurance cover and suitable vehicle cover.

A third of home businesses also keep their “spare” cash in an account that pays no interest. Even at a low rate of 1.5% this adds up to potential an earning an extra £80 on the average pot of £5309.

Only 27% of home based businesses took financial advice while 65% had not told their insurer of their business interests.

Sansom added: “There are benefits to be had in seeking advice in managing the finances efficiently. A thousand pounds to a small start-up business is a lot of money and could be key in helping the business move to a next stage.”