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No-Nonsense
Guide
to Government rules
and regulations for
setting up your business
Thinking
of starting
a business?
Need help with
rules, regulations
and forms?
If you’re thinking of starting a business — or
if you already run one — The No-Nonsense
Guide saves you time, stress and money.
It tells you what you need to know about
the legal and official side of starting up a
business. It also explains the regulations
that affect growing businesses — from
getting new premises to employing people.
This guide sets out the main regulations that apply when you
start up in business, and how to comply with them. It is not
comprehensive or a substitute for independent, legal or other
expert advice. Every reasonable effort has been made to
ensure that the information in this booklet is accurate, but no
responsibility can be accepted for any errors or omissions.
Finding a subject Business vehicles and tax 21 Registering your business 36 Staff who are off sick 63 Dismissals which are
a Check the two pages opposite to find the Forming a business 4 Special tax rules for the Insuring your employees 37
Trading regulations Arranging employees’
automatically unfair 83
subject you want and its page number.
The No-Nonsense Guide is arranged construction industry 22 and data protection 48 pensions 64 Dismissals which are
Sole trader 4 Informing your staff about
into 12 colour-coded main sections. Within automatically unlawful 84
Your business rates 22 health and safety 37 Length of the working week 65
Partnership 4 Unfair trading 48
these sections, individual topics are covered Giving notice of dismissal 85
Protecting your employees 38 Giving staff rest breaks 65
separately, each with its own sub-heading. Limited liability partnership 4 Terms and conditions of sale 48
Written reasons for dismissal 85
So if you want to find out about the Computers and employees 39 People working at night 67
Special rules for shops 51
various ways of accounting for VAT, go to Limited company 5 What VAT will mean Constructive dismissal 85
Reporting incidents 39 Paid annual leave 67
the main section headed What VAT will Choosing the right name 8 for you 24 Distance selling 51
Handling redundancy 87
mean for you. Just over halfway down, one Time off work other than
Franchises, social enterprises, Selling and marketing
of the sub-headings for VAT highlights your What is VAT? 24 annual leave 68 Qualifying for redundancy pay 88
co-operatives and charities 9 electronically 53
topic — Accounting methods for VAT — and
What VAT rate will I have to Protecting your Race, sex and age discrimination Sale or transfer of a business 89
its page number. Accepting credit and debit
The topics listed in the Contents pages
charge? 24 intellectual property 40 cards 53
68
Religious and political
opposite cover all the main rules and Sorting out your Keeping VAT records 25
Business names and domain Getting paid on time 54
regulations that are likely to affect new and
tax and Accounting methods for VAT 25 names 40
discrimination 70 Government advice
growing businesses. You can see at a Court action for debts 54
National Insurance 10 VAT on imports 27 Protecting your trade marks 40
Workers with disabilities 71 and support 90
glance what might apply to you, now or in Preventing money laundering 55
the future. Rights of part-time workers 71
VAT on exports 28 Patents and their benefits 41 Insuring against liabilities 56 Your first steps when
Your employment status 10 Right to belong to a starting a business 90
Next steps VAT on business vehicles 29 Understanding copyright 43 Data protection 56 trade union 73
Employed or self-employed? 10
b Sometimes things are mentioned in the If you are an exporter or an
Registered design and When an employee is
text that require further action or Tax and National Insurance innovator 91
design right 44 pregnant 74
information — such as registering your for the self-employed 11
payroll or getting the right VAT form. You
Premises and health Intellectual property protection Recruiting your first Pay on maternity leave 75
Raising finance for your
Tax for a limited company 12 business 92
will find what you must do and where to get and safety 30 overseas 44 employee 58
Calculating business expenses 13 Paid paternity leave 76 Equity finance for your
more information in the Next steps box at Software copyright and
the end of the sub-section. Next steps also Allowances for Planning consent for How to recruit and select Paid leave for adoptive parents77 business 92
licences 45
gives you page numbers for other entries in equipment and premises 15 businesses 30 employees 58 Tax relief and credits to help
Unpaid leave for parents 78
The No-Nonsense Guide that are relevant to Using your home as your research and development 93
How capital gains tax works 15 Eligibility to work in the UK 58 Employees and flexible
that topic. workplace 30
The tax return for individuals 16 Is your business Drawing up employment working 79 Training for you and your
Fire protection 31 workforce 93
c
Role models
The tax return for companies 17 in a specialised contracts 59
To give you some tips on how other small Support for agricultural
businesses have tackled Government rules Working out tax and NI for
Ensuring easy access for sector? 46 Changes to employment
disabled people 32 businesses 94
and regulations, we’ve included the first- employees 17
contracts 61 Resolving problems
Food businesses 46 A boost for business in
hand experiences of people who have Paying employees’ tax and NI
Managing and transporting with employees 80
waste and packaging 33 Entertainment and leisure 46 Enterprise Areas 94
already set up in business. to HM Revenue & Customs 18
Other environmental concerns33 Health and care services 46 Understanding Discipline and grievance Female entrepreneurship 94
Check for changes in the law Statement of employees’ pay, issues 80
d tax and National Insurance 19 Health and safety essentials 35 Transport businesses 47
employees’ rights 62 Help with exporting 95
Regulations, figures and sums of money The LRA Code of Practice on
may have changed since publication. Employees’ pay records at Minimum workplace …and many other special Help from your council 95
Insuring your employees 62 discipline and grievance issues81
end of tax year 20 standards 35 cases 47
Workers and employees 62 Monitoring email and
Tax forms when an employee Carrying out a risk web use 81
leaves or dies 21 assessment 36 The national minimum wage 62 Useful contacts 96
Valid reasons for dismissal 82
Forming a business
Next steps partners. It is sensible to draw
4
Sole trader up a partnership agreement,
● See Employed or setting out how the partnership
self-employed?, page 10 will be run and how the proceeds
Becoming a sole trader is the ● Visit www.nibusinessinfo.co.uk/ will be split (it is advisable to
most straightforward way to legalstructures use a solicitor). This will help to
set up in business — you can ● It is a good idea to seek help prevent disputes.
get started quickly and you do from a business adviser or Partners are often taxed as
not have to answer to anyone solicitor when deciding the self-employed but this is not
else. But sole traders are best legal form for your always the case. If you are self-
personally responsible for any business employed, you must register with
business losses ● If you are self-employed you HM Revenue & Customs within
must register with HM Revenue three months of starting up.
Setting up in business as a sole & Customs. Contact
trader is quick and easy and 08459 15 45 15; Next steps
involves little of the form-filling www.hmrc.gov.uk/
associated with starting and startingup ● See Employed or
running a limited company. Sole self-employed?, page 10
traders make their own business ● Visit www.nibusinessinfo.co.uk/
decisions and have complete legalstructures
responsibility for the running of Partnership ● It is a good idea to seek help
their business. from a business adviser or
However, sole traders are solicitor when deciding the
personally responsible for any Forming a partnership allows best legal form for your
losses the business makes. This two or more people to set up business
means your own possessions in business together, sharing ● When setting up a partnership
— including your home — could profits, management burdens agreement you should ask a
be at risk if you cannot pay your — and risks solicitor for help
debts. You may also find it more ● If you are self-employed you
difficult to get finance to fund Partnerships allow you to share must register with HM Revenue
your business. the responsibility of managing a & Customs. Contact
Once you are operational, business. And joining forces with 08459 15 45 15;
you must keep a record of the other people may mean that www.hmrc.gov.uk/
business’s income and outgoings. there is more money to invest in startingup
Despite the name, you do not the business.
have to be on your own; a sole Partners share personal
trader can take on employees. responsibility for business debts.
Although sole traders are They put their own possessions Limited liability
often taxed as self-employed, on the line — including their
this is not automatically the case home — if things go wrong. If one
partnership
even though you will be working partner cannot pay their share
for yourself. of any debts, the other partners A limited liability partnership
If you are self-employed, you become responsible for it. or LLP shares many features
must register with HM Revenue Remember that a partner of a normal partnership — but
& Customs within three months can make business decisions it also offers reduced personal
of starting up (see Next steps or enter into binding contracts responsibility for business
below). without the consent of other debts
}
Members of a limited liability partnerships are often taxed
partnership are protected from as self-employed but this is not 5
personal responsibility for always the case. If you are self-
business debts. All I needed to do once employed, you must register with
Their liability is limited to the HM Revenue & Customs within
amount of money they have
I’d registered as a sole three months of starting up (see
invested in the business and to trader was manage a Next steps below).
any personal guarantees they cash book, work through You cannot form an LLP if
have given to raise finance. a simple profit and loss your business will be a charity or
As with a traditional account and complete my not-for-profit organisation.
partnership, partners in a limited
liability partnership share
tax return Next steps
~
management responsibilities and
potentially have more money to ● See Employed or
invest in the business. self-employed?, page 10
But forming an LLP will be ● Visit www.nibusinessinfo.co.uk/
more expensive and complicated legalstructures
than setting up a partnership. It ● It is a good idea to seek help
will involve sending registration from a business adviser or
documents to Companies House Adam Ewart solicitor when deciding the
and paying a fee. Karacha Music Limited best legal form for your
A limited liability partnership business
will also bring a number of extra ● If you are self-employed
running costs. you must register with HM
For example, you will be Revenue & Customs. Contact
required to make financial 08459 15 45 15;
information about your business www.hmrc.gov.uk/startingup
publicly available by sending a
copy of its annual accounts to
Companies House. You will also
have to submit an annual return Limited company
giving key details of the LLP and
its members.
LLPs also have to have their A limited company offers
accounts audited, although those reduced responsibility for
with a turnover of less than business debts. But it
£6.5m and a balance sheet of brings a range of extra legal
less than £3.26m are normally duties, too — such as filing
exempt. your accounts with Companies
As with a traditional House each year
partnership, it is a good idea
for anyone forming a limited Private companies limited
liability partnership to draw up by shares generally protect
a partnership agreement setting the individual from personal
out how the LLP will be run and responsibility for business debts.
how profits will be shared. Your personal risk is restricted
Members of limited liability to how much you invest in the
How I went
about
forming my
business
Adam Ewart set up Karacha,
a musical instrument and
accessory retailer, while
6 at university in 2004. He
started small as a sole
trader and after building a
bigger customer base and
developing the product range,
he felt the time was right to
incorporate the business
~
a limited company. The company You can also buy an ‘off-the-
must submit annual accounts shelf’ (ready-made) company
and tax returns to HM Revenue & from a formation agent or
Customs — on top of any returns solicitor — speeding up the
you must file on your own behalf process.
Karacha Music Limited (see Next steps below).
16 Balloo Avenue A set of accounts also has to Next steps
Bangor BT19 7QT be sent to Companies House,
Tel: 0845 200 83 43 making financial information ● See Tax for a limited company,
www.karacha.com about your business publicly page 12
available. You must also send ● See The tax return for
~
registration documents ‘British’, ‘Irish’, ‘Northern Irish’,
(Forms 10 and 12) and more ‘Royal’ or ‘Institute’. Further
information about how to set details of what is allowed can be
up a limited company from found in the Companies House
Companies House. booklets listed in Next steps
Contact 0303 1234 500; below.
www.companieshouse.gov.uk You should check the
● Forms for the memorandum availability and suitability of
of association and articles of company names with Companies
association are available from House before completing the
legal stationers Adam Ewart company registration documents.
Karacha Music Limited You cannot reserve intended
company names for your
possible future use.
Choosing the When choosing a name, you
may want to consider whether
right name you will want to set up a website
in the future.
The right name for your If so, it is a good idea to check
business can help you stand the name is available as a web
out from the crowd — but there address (domain name) and
are a few restrictions which register it, so your customers
could affect your choice will be able to find your website
easily.
Sole traders or partnerships Nominet UK is the registry
can trade under their personal for .uk domain names and also
names or choose a different provides advice on registering
business name. However, if you and maintaining your Internet
choose something other than name (see Next steps below).
your own name you will have to
include your own name and the Next steps
business address on all business
stationery. ● See Business names and
You must register the name domain names, page 40
of a limited company when it is ● Visit www.nibusinessinfo.co.uk/
formed. nameandtrademark
}
www.hmrc.gov.uk/employment- tax and National Insurance — and
status self-employed in another. 11
● For further advice on IR35, You will be responsible for
contact the HM Revenue & paying your own personal tax If you’re unsure about any
Customs IR35 Helpline: and National Insurance. You will
0845 303 3535; have to fill in a tax return each
aspect of the financial side
www.hmrc.gov.uk/ir35 year and you will be taxed on of running your business,
your business’s profits. I’d recommend seeking
To work out your profit, you professional assistance
~
take allowable expenses away
Tax and National from your revenue. There are
rules governing what you can
Insurance for the claim as expenses (see Next
self-employed steps below).
Income tax is charged on
If you are self-employed, you all profit above your personal
must register as such within income tax allowance. Your
three months of starting up allowance depends on your
circumstances.
When you register, HM Revenue Remember that the income
& Customs will change your tax you pay is not based on the
tax status to self-employed salary you pay yourself. For Alix Mulholland
and make arrangements for example, if you make a £30,000 Bog Standard
you to pay the correct National profit, the whole amount is
Insurance contributions. treated as a taxable sum, subject
However, if your work comes to personal and other tax
from more than one source, it allowances — even if you have
is worth remembering that you only drawn £10,000 as salary
could be employed in one job — and have retained the other
with your employer deducting £20,000 in the business.
}
● See Working out tax and NI for allowable as business expenses:
employees, page 17 for example, if you use your 13
● Visit www.nibusinessinfo.co.uk/ phone for business calls. You
With the right systems in taxes should check the position with
● If you form a limited company HM Revenue & Customs or
place, managing your tax you must register as an consult your accountant.
and National Insurance employer with HM Revenue & The cost of buying equipment
obligations isn’t difficult Customs, even if you are the or premises (and any reduction
~
company's only employee. in value following the purchase)
Contact the New Employer is not allowed as a business
Helpline: expense — these areas are
0845 60 70 143; covered by capital allowances
www.hmrc.gov.uk/newemployers and annual investment
allowances (see page 15).
You need to keep records of all
income and expenditure in order
Calculating business to fill in your tax return each year
and pay the correct tax.
expenses
Next steps
Your business will be taxed on
Alix Mulholland its profits: correctly working ● See Allowances for equipment
Bog Standard out what your business has and premises, page 15
spent is just as important as ● See The tax return for
how much money has come in individuals, page 16
● See The tax return for
There are strict rules concerning companies, page 17
what can and cannot be counted ● See Using your home as your
as a business expense when workplace, page 30
calculating profits. ● For more information, read:
Allowable expenses include How To Calculate Your Taxable
the costs of any goods or Profits (HS222). Contact
materials bought as stock and HM Revenue & Customs
then resold, rent and running Self-Assessment Orderline:
costs for premises, marketing 0845 9000 404;
costs, cost of travel to see www.hmrc.gov.uk/sa
customers, financing costs
and general running expenses,
such as postage and telephone.
Costs which are not allowed
include personal expenses such
as travel to work, clothes or
living expenses, entertaining
clients and fines such as parking
tickets.
If you work from home, some
of your domestic bills may be
fact, I still had a full-time and National Insurance-related isn’t difficult. But if you’re
job. We’ve since experienced correspondence. He also helps unsure about any aspect of
excellent growth and now we me with payroll. I’m lucky, I know the financial side of running
sell to customers throughout it saves me a lot of money I’d your business I’d recommend
Ireland and the UK, which otherwise have to spend on seeking professional
means I have much more accountancy fees. assistance. You don’t have to
bookkeeping to do. Day to day, I do my own books. know every technical detail,
Before I started the It is a burden, because there but there is information that
business I had hardly any are so many other things that you must be aware of.
knowledge of tax, National demand my attention, but it's You’ve also got to make
Insurance or bookkeeping important. sure your books are well
— I was completely clueless. Each day I need to process managed and that your
Getting to grips with the orders and send out invoices financial information is
financial aspect of running my — some of which I have to accurate and up to date. If you
business has involved a steep chase for payment. You have don’t, you’re in serious danger
learning curve. Before I started to keep a close eye on money of losing control of your
the business, I went on a local you are owed and how much finances — and your business.
enterprise course to find out you owe and I log every penny
~
more about the tax side of my business spends. I use a
things. bookkeeping software package,
Fortunately, my boyfriend — which ensures accuracy and
who’s now my husband — is an saves time. We sit down regularly
accountant. He doesn't work to assess our cashflow – it’s
for the business but he looks hugely important.
over my accounts, advising me With the right systems in Bog Standard
on tax and helping me fulfil my place and if you keep on top Carryduff, Belfast, County Antrim
legal obligations. of it, managing your tax and Tel 028 9082 6707
Being a limited company National Insurance obligations www.bogstandard.ie
allowance of two per cent for You may have to pay capital
15
Allowances purchases of industrial premises gains tax (CGT) if you sell
but this is gradually being — or sometimes if you give
for equipment and phased out. away — what HM Revenue &
premises A number of special schemes Customs calls ‘assets’. An asset
provide increased first-year is something you own, such as
When working out your allowances — for example, an shares, property or the goodwill
profits, you cannot count as allowance of 100 per cent applies of a business.
an expense the purchase of to a range of environmentally If an item is worth more than
premises and equipment — or of friendly equipment. you paid for it when you sell
their gradual reduction in value or ‘dispose’ of it, you may be
through wear and tear. But Next steps liable to pay CGT. The difference
you can claim allowances for between the item’s value when
most investment in plant and ● Visit www.nibusinessinfo.co.uk/ you dispose of it and when you
equipment, deducting some or taxes acquired it (less certain kinds of
all of these costs from your ● For more information, read: expenses allowed by HM Revenue
taxable profits How To Calculate Your Taxable & Customs) is the capital gain.
Profits (HS222). Contact This is what you may be taxed
The annual investment allowance HM Revenue & Customs: on.
allows businesses to deduct 100 0845 9000 404; You will be taxed personally
per cent of the costs of most www.hmrc.gov.uk/sa on gains you make when you
plant and machinery (excluding ● For more information on the sell your business. Each year a
cars), up to an annual limit of annual investment allowance, certain amount of capital gains
£50,000. read: Capital Allowances; are exempt from CGT (£10,100 in
If you spend more than www.hmrc.gov.uk/budget2009/ the tax year 2009-10). You can
£50,000 in a year, you can claim bn04.pdf also offset any allowable losses
capital allowances on the excess. ● For further information about where you have sold assets for
Rates of capital allowances vary, enhanced capital allowances less than you paid.
and sometimes work in slightly for environmentally friendly Gains on the sale of a business
different ways. equipment, contact by an individual are taxed at
The main rate for equipment www.eca.gov.uk ten per cent, up to a lifetime
is currently 20 per cent, but you allowance of £1 million. Gains
can claim a higher allowance in excess of this entrepreneurs'
of 40 per cent in the year the relief are taxed at 18 per cent.
equipment is purchased. This How capital gains tax Remember you do not
means that for an item costing normally have to pay CGT on
£5,000, you can deduct £2,000
works the sale of your own home.
in the first year. The year after, And there is a range of other
£600 can be deducted — 20 If you are planning to create and exemptions and reliefs.
per cent of the remaining value sell a business or use the Limited companies pay
of £3,000. In this way, the proceeds from the sale of your corporation tax on any capital
allowance slowly declines year business to fund your gains, as they are treated as part
by year. retirement, you need to be aware of the company’s taxable profit.
Capital allowances cannot of capital gains tax (CGT). And if CGT can be complex. You
be claimed for purchases of you sell any assets — such as should take advice from an
commercial premises. In certain your premises — you may be accountant, particularly if your
circumstances there is a capital required to pay CGT company sells its business,
~
relief — is available from HM to adjust for any difference
Revenue & Customs. Visit between the amounts paid and
www.hmrc.gov.uk/cgt the tax due as a result of your
actual profits and gains.
If you are a director of a
limited company, you will need to
The tax return for keep information relating to your
pay, tax, expenses and benefits
individuals in kind (such as the information
contained on forms P60 and
Both self-employed people and P11D, for example) as well as
directors of limited companies records of any dividends you
must fill in a self-assessment have received (see Next steps
tax return each year. This Alix Mulholland below).
provides HM Revenue & Bog Standard As a company director,
Customs with the details your tax is due on January 31
needed to calculate your tax following the end of the tax year.
bill for the year You will have to pay any tax you
owe after taking into account the
HM Revenue & Customs should tax that has already deducted
send you a tax return in April under the PAYE system. If you
that is tailored to your own owe less than £2,000 and submit
particular circumstances. You will your return by September
need to complete all the details 30, this tax can probably be
of taxable income, gains and tax collected under PAYE as well.
allowances.
If you want to submit a paper Next steps
return, you must send it to HM
Revenue & Customs by October ● If you are running a limited
31. If you file your return online, company, you will be taxed as
you have until January 31. an employee and need to set
HM Revenue & Customs will up your own payroll, even if
work out how much tax you owe. you are the only employee.
If you are self-employed, you See Working out tax and NI for
will need to use the records you employees, page 17;
keep while running your business See Statement of employees’
to fill in your tax return. pay, tax and national
After your first year in insurance, page 19;
business, your tax will be See Employees’ pay records at
}
electronically or through your
19
bank. If you collect less than Statement of
£1,500 a month in income tax,
National Insurance and student
employees’ pay,
We sit down regularly to tax and National
loan repayments, you can pay
assess our cashflow – it’s quarterly: by January 19, April 19, Insurance
hugely important July 19 and October 19 if you pay
~
by cheque, or by the 22nd of those You must give your employees
months if you pay electronically or a payslip or statement each
through your bank. time you pay them. It must set
You will automatically out their gross and net pay and
receive a payment booklet from the amounts of tax, National
your HM Revenue & Customs Insurance and other deductions
Accounts Office to send with
your payments if you pay by post. The itemised payslip or
You can also pay by BACS direct statement must show:
credit, your bank’s telephone ● their gross wages or salary
or Internet banking, Girobank before you make any
Billpay or CHAPS. deductions;
You can pay your tax and ● details of deductions from
National Insurance contributions to their pay which vary from one
Alix Mulholland HM Revenue & Customs in euros. period to the next (income
Bog Standard tax and National Insurance
contributions, for example);
Next steps ● details of any fixed deductions
which stay the same every pay
● HM Revenue & Customs can period (such as trade union
provide detailed information subscriptions);
on how to pay tax and ● their net wages or salary
National Insurance. Visit after tax;
www.hmrc.gov.uk/payinghmrc ● a breakdown of payments if
● For more information on using parts of the salary are paid in
euros to make payments different ways.
to HM Revenue & Customs,
contact www.hmrc.gov.uk/euro Instead of itemising each
● Form P32, the Employer’s fixed deduction in every pay
Payment Record, is available statement that you give an
on the HM Revenue & Customs employee, you can include them
website. It is also included in all on an annually updated
the New Employer’s Starter standing statement.
Pack and can be ordered from If there are any changes that
the HM Revenue & Customs affect these fixed deductions,
Employer’s Orderline. Contact you must either inform the
0845 7 646 646; employee in writing or provide
www.hmrc.gov.uk/paye them with a new standing
statement.
}
Next steps each employee with a written
20 summary of their pay, tax and
● Visit www.nibusinessinfo.co.uk/ National Insurance figures for
taxes We’re meticulous when the tax year. You do this using
● For more information, read: form P60, which most payroll
Pay Statements: What They
it comes to recording software will allow you to print
Must Itemise (ER12). Visit www. expenditure and keeping automatically once you’ve
delni.gov.uk/er12 receipts completed the employee’s
~
form P14. You must give your
employees their P60s by May 31.
You must complete a form
Employees’ pay P11D for all directors and every
employee who earns £8,500
records at end of or more a year and has been
tax year paid expenses or benefits that
are taxable. It lists the taxable
There are other forms that have expenses and benefits provided
to be sent to HM Revenue & to them during the tax year. You
Customs — and given out to must also file a form P11D(b),
your staff — at the end of every which shows the total Class 1A
tax year. Almost all employers National Insurance contributions
are now required to file their Alix Mulholland due on these expenses and
Employer Annual Return online Bog Standard benefits.
A form P9D must be sent
The tax year runs from April to HM Revenue & Customs for
6 to April 5. At the end of the each employee earning less
tax year, and no later than May than £8,500 a year who has
19, you must file an Employer been paid taxable expenses or
Annual Return (forms P35 benefits.
and P14) to HM Revenue & Forms P11D, P11D(b) and P9D
Customs. Almost all employers must all reach HM Revenue &
are required to file their annual Customs by July 6 each year.
return online. You must give employees a copy
You will need to complete of their P11D or P9D by the same
and submit a form P14 for each date.
employee for whom you have
prepared a form P11 during the Next steps
tax year (see Working out tax
and NI for employees, page 17). ● Visit www.nibusinessinfo.co.uk/
You also have to complete a taxes
form P35, which summarises the ● HM Revenue & Customs
end-of-year payroll figures from provides a wide range of
all the P14s you have prepared. further information about
You will be sent a reminder to completing your end-of-year
file your Employer Annual Return payroll tasks. Contact
towards the end of the tax year. 0845 60 70 143;
You must also provide www.hmrc.gov.uk/paye
}
premises in Northern Ireland premises and that you want
qualify for industrial derating an assessment of the business 23
— rate relief — meaning that rates you will have to pay
Make sure your books reduced business rates are ● For details of your local Land
payable. However, this rate relief & Property Services office,
are well managed or is gradually being phased out. contact: 0845 300 6360;
you could be in serious From April 2009 to March 2011, www.lpsni.gov.uk
danger of losing control of industrial rates are capped at 75
your finances – and your per cent of the full rate liability,
business but from April 2011 onwards full
rates will be payable.
~
Rates are based on a
property’s assessed rental value,
with the annual bill calculated
by multiplying the relevant rate
in the pound (depending on the
district council area).
In Northern Ireland, the rate in
the pound averages around 50p,
so rates bills for most businesses
(except manufacturers) are
Alix Mulholland currently about 50 per cent of
Bog Standard rateable value.
New occupiers of business
premises should contact Land &
Property Services. You should
also notify Land & Property
Services if any physical changes
that might affect the rateable
value have been made since you
took up occupation.
If you work at home, business
rates may be payable for the
part of the property you use for
work. You would pay domestic
rates in the usual way for the
remainder of the property.
Check with your local Land &
Property Services office.
Next steps
● Visit www.nibusinessinfo.co.uk/
taxes
● Inform Land & Property
Services that you are going
to be occupying business
}
reclaim input tax on purchases forward payment of the balance
used for making non-exempt to HM Revenue & Customs. 25
products or services. You can file online or using
You must keep on top a paper return, but note that
Next steps HM Revenue & Customs plans
of your obligations to phase out paper VAT returns
● Visit www.nibusinessinfo.co.uk/ if VAT rules apply to from April 2010.
taxes your business – it’s not You must complete a VAT
● Check if your products or something you can afford return for each accounting
services are standard-rated, to ignore or get wrong period. This is usually every three
reduced-rated, zero-rated or months, but if you expect the
~
exempt. Contact HM Revenue input tax you pay to be greater
& Customs National Advice than the output tax you charge,
Service: 0845 010 9000; you can make monthly returns.
www.hmrc.gov.uk/vat You will automatically be sent a
VAT return form to fill in before
each payment is due. You must
return it to HM Revenue &
Keeping VAT records Customs no later than one month
after the accounting period.
There is no set way to keep
Being registered for VAT means Alan Anderson records, but they must be easy
that you must keep full and Blue Tube Design for HM Revenue & Customs to
accurate records inspect whenever it asks to do
so. Full records must also be kept
You must start keeping records for a minimum of six years.
and charging VAT to your
customers from the date you Next steps
know you have to be VAT-
registered. Each invoice or ● Visit www.nibusinessinfo.co.uk/
receipt must show clearly the taxes
rate and amount of VAT charged ● For more information contact
and the VAT number given to HM Revenue & Customs:
your business by HM Revenue & 0845 010 9000;
Customs when you registered. www.hmrc.gov.uk/vat
You must also ensure your VAT-
registered suppliers do the same,
so you have evidence that you
are entitled to reclaim the input Accounting methods
tax you have paid.
You must keep copies of all
for VAT
invoices or receipts and a note
of all the VAT you have charged There are a number of methods
and paid. you can use to account
You must submit a VAT return correctly for VAT. Choose
— showing how much VAT you the one that best suits your
have received and paid — and business
come in, help them with their utility and telephone bills, which books are well maintained.
corporate identity, website, is important, because I run my Obviously, I have plans to grow
branding and marketing. I business from home. Being able my business and more sales
was also doing sales training. to reclaim VAT — money that will mean more invoices and
I realised I could earn more your business has already paid accounts work. And if doing
money by setting up my own out — aids cashflow. such things as VAT returns
branded business, which is I’m in the process of requires significantly more
what I finally did this year. completing my first quarterly effort, I might consider paying
My knowledge of VAT was VAT return. If I’m honest, it’s a bookkeeper.
— and is — fairly basic, but I proving to be a bit of a learning If you run or plan to run a
knew that if I expected my curve. I could have paid an business and your knowledge
business to turnover a certain accountant or bookkeeper to do of VAT rules is lacking you
amount, I’d have to become it for me, but I’m trying to limit could do an introductory
VAT registered. I might not my costs so I've decided to do course to VAT. If not, then get
exceed the VAT threshold this it myself. professional advice. You must
year, but it’s better to be safe I’m very lucky because I can keep on top of your obligations
than sorry. count on help from my fiancée if VAT rules apply to your
Becoming VAT registered Katherine, who comes from a business — it’s not something
was incredibly straightforward. banking background. We had our you can afford to ignore or get
It was dead easy and I didn’t son in 2008 and Katherine left wrong.
even have to ring up and work, but later she enrolled in a
~
speak to anyone — I did it bookkeeping course at our local
online in a few minutes. college because she plans to stay
Obviously, experience told in finance if she returns to work.
me which of my products and Thanks to help from
services I’d have to charge VAT Katherine, filling out my first VAT Blue Tube Design
on. Probably nine out of every return hasn’t been too difficult. Bangor, North Down
ten invoices I issue includes She’s done most of it. The task Tel 028 9147 7819
VAT. But when I looked into it is certainly much easier if your www.bluetubedesign.com
Unless you arrange otherwise for VAT. It allows you to calculate at the same time as the flat-rate
with HM Revenue & Customs, your VAT payment as a fixed scheme. 27
your output tax must be entered percentage of your turnover.
on the next VAT return after The percentage depends on Next steps
you charge your customer — the type of business you are in.
regardless of whether they have Businesses in the first year of ● Visit www.nibusinessinfo.co.uk/
paid you or not. Similarly your VAT registration qualify for a taxes
input tax must be entered on the one per cent reduction. ● Ask your accountant or
next VAT return after you are To be eligible for the flat-rate financial adviser if you are
charged by your supplier, whether scheme, your annual turnover considering changing the VAT
you have paid them or not. subject to VAT must not exceed accounting scheme you use
However, there are a number £150,000 (excluding VAT) and ● For more information read:
of other accounting schemes your total turnover (including Cash Accounting (Notice 731);
that may suit your business: VAT) must not exceed £187,500. Flat Rate Scheme For Small
● cash accounting You can apply by filling in Form Businesses (Notice 733);
● the flat-rate scheme for small VAT 600FRS. If you use this Retail Schemes (Notice 727);
businesses scheme, you will not be repaid Annual Accounting (Notice
● specific retail schemes any input tax as it is already 732). Contact HM Revenue
● annual accounting allowed for as part of the & Customs National Advice
percentage calculation. Service: 0845 010 9000;
If the proportion of your A selection of specialist www.hmrc.gov.uk/vat
turnover subject to VAT does schemes are available to retailers ● HM Revenue & Customs will
not exceed £1,350,000 a year, who would otherwise find it complete your application for
your business can use the cash impossible or costly to comply the flat-rate scheme on your
accounting scheme. This may with standard VAT accounting behalf. Contact
be useful if your customers are rules. Specialist advice is 0845 010 9000
slow payers. You only have to available from HM Revenue & ● Use an online tool to calculate
record your output tax on your Customs or your accountant. flat-rate VAT payments:
VAT return after your customer The annual accounting system http://vatreadyreckoner.hmrc.
has paid you and your input requires one VAT return to be gov.uk
tax is only entered on your filed each year. You can register
return when you have paid your for this scheme if your annual
supplier. You can change to turnover subject to VAT is not
this system at the beginning of more than £1,350,000. VAT on imports
any tax period. However, you Under the annual accounting
must be careful to separate any system, VAT payments based on
output tax or input tax dealt with an estimate are usually made If your business imports
under your previous system. You nine times each year, with a goods, there are a number of
do not need permission from balancing payment due when important VAT rules you will
HM Revenue & Customs to use you submit your return. By need to consider. And in some
this scheme but there are certain allowing you to pay a set amount cases, you may also have to
conditions you must meet, set each month, the scheme can pay import duty
out in Notice 731 (see Next steps help you manage your cashflow
below). with more certainty — and you The regulations that govern
The flat-rate scheme for small have two months to submit VAT on imports into the UK are
businesses is designed to reduce your return rather than one. complex and businesses should
the time you spend accounting Annual accounting can be used seek advice from HM Revenue
& Customs. In general terms, VAT goods are supplied from the 010 9000; www.hmrc.gov.uk
28 is payable on all imports at the US to Belgium, duty and other ● For more information about
same rate that would apply to taxes are paid in Belgium. Once Intrastat visit:
the product or service if supplied in the EU, the goods are in free www.uktradeinfo.com
in the UK. circulation. If they later enter
You must enter on your the UK, no customs charges are
VAT return details of VAT on payable.
goods acquired from within the When importing goods VAT on exports
European Union (EU) — including from outside the EU, you can
the Republic of Ireland. This store them in an approved
is known as acquisition tax. HM Revenue & Customs The value of any exports you
However, you are entitled to warehouse if you do not intend make — whether to countries
reclaim input tax on the goods as to sell them immediately. VAT within or outside the EU —
if they were supplied in the UK and import duty become payable must be entered on your VAT
subject to the normal rules. when the goods leave the return. In many cases these
If you import goods worth warehouse. transactions will be zero-rated
more than £68,000 a year If you intend to re-export for VAT
from other EU countries you the goods outside the EU after
must register for VAT. If your processing them, you can apply Businesses in the UK that sell
EU imports exceed £270,000 for Inward Processing Relief. VAT to VAT-registered businesses in
you must file more detailed and duty only become payable if other parts of the EU — including
declarations, known as Intrastat you sell the goods in the EU or the Republic of Ireland — must
Supplementary Declarations. fail to comply with the scheme’s submit details of the transactions
For goods imported from conditions. to HM Revenue & Customs.
outside the EU, import VAT If you import regularly, If you have a high level
and duty must be paid before you can operate a deferment of export trade with other
the goods are released by account, settling your VAT and EU countries, you may have
HM Revenue & Customs. duty on a monthly basis. You to submit more detailed
Duty is an additional tax, may need a bank guarantee for declarations, known as Intrastat
based on the value of imported this. Supplementary Declarations.
goods. Duty varies according to If you export goods to a
type of product and country of Next steps customer outside the EU and are
origin. In some cases no duty VAT-registered, the goods can be
may be payable. HM Revenue ● Visit www.nibusinessinfo.co.uk/ zero-rated.
& Customs can advise you on the customs If you are VAT-registered
rate of duty which applies to a ● Further guidance about VAT and supply goods that are sent
particular product. for imported goods and from the UK to a VAT-registered
Duty cannot generally be services is available from customer in another part of the
reclaimed by VAT-registered HM Revenue & Customs. EU, the goods can be zero-rated.
businesses, except where goods Contact 0845 010 9000; The supply of some services
have been imported under www.hmrc.gov.uk/vat to customers outside the UK is
Inward Processing Relief (see ● For more information about also zero-rated, but many attract
below). There is no duty on deferment accounts, read: standard-rate VAT.
goods which originate from an Deferring Duty, VAT And Other Complex rules surround
EU country or which have already Charges (Notice 101). Contact exports and VAT. Check with
been imported with customs HM Revenue & Customs HM Revenue & Customs for
charges paid. For example, when National Advice Service: 0845 advice.
}
Next steps charge does not apply and VAT
may be reclaimed on fuel bought 29
● Visit www.nibusinessinfo.co.uk/ for business provided you keep
Becoming VAT customs a detailed record of business
● You can get further guidance mileage.
registered was incredibly about VAT for exported goods If you lease a car for business
straightforward. I did it and services from HM Revenue purposes, VAT can normally be
online in a few minutes and & Customs. Contact 0845 010 reclaimed on 50 per cent of the
there was no charge 9000; www.hmrc.gov.uk/vat lease charge.
~
● For more information about
Intrastat visit: Next steps
www.uktradeinfo.com
● See Business vehicles and tax,
page 21
● Visit www.nibusinessinfo.co.uk/
VAT on business businessvehicles
● For more information read:
vehicles Motoring Expenses (Notice
700/64). Contact HM Revenue
There are special rules for VAT & Customs National Advice
on business vehicles — and the Service: 0845 010 9000;
Alan Anderson fuel used in them www.hmrc.gov.uk/vat
Blue Tube Design
You cannot normally reclaim the
input tax you have to pay on a
new motor car. However, VAT-
registered businesses can claim
it back if they can show the car
is used 100 per cent for business
purposes (a pool car kept on site,
for instance). You must charge
output tax if the car is sold later.
VAT incurred on the purchase
of a commercial vehicle (a van,
lorry or tractor, for example) can
be reclaimed in full subject to
the normal rules.
If the business pays for both
private and business fuel, a fixed
VAT charge is applicable based
on the vehicle's emissions (this is
called the fuel scale charge). This
allows the business to reclaim
VAT on both the business and
private elements of the fuel.
If the business does not pay
for private mileage, a scale
Premises and
health and safety
building consent, even for minor You have health and safety
30
Planning consent for changes to décor. Unauthorised responsibilities if you work at
alterations to a listed building home and you must carry out a
businesses are a criminal offence. risk assessment (see Next steps
It is advisable to check if any below). As part of this process,
If you want to change the of these requirements will affect you must consider the health
use of premises or extend a you before negotiating a lease or and safety of visitors and other
building, you may need planning buying a property. people in your household.
permission from your local If running your business from
authority. Any significant Next steps home means the use of the
building work must comply building is significantly changed or
with building regulations ● See Ensuring easy access for has an impact on the surrounding
disabled people, page 32 area, you may need to apply for
Planning permission is managed ● Visit www.nibusinessinfo.co.uk/ planning permission (see Planning
by the Planning Service. Building health_and_safety consent for businesses, above).
regulations are managed by the ● The Planning Service can For example, your business might
building control department of advise on planning permission. create additional traffic or parking
your local authority. Contact 028 9041 6700; in a residential road. The key
Special considerations apply www.planningni.gov.uk questions you need to answer are:
for people working from home ● Your local authority’s building ● Will your home no longer
(see Using your home as a control department can advise be used mainly as a private
workplace, below). on complying with building residence?
You may require planning regulations. Visit ● Will your business result in
permission to change the way www.buildingcontrol-ni.com a marked rise in traffic or
premises are used — from a shop people calling, or involve
to offices, for example. Before any unusual activities in a
leasing or buying a property, residential area?
check with the Planning Service Using your home as ● Will your business disturb
whether you will need permission your neighbours at unreasonable
for your intended use.
your workplace hours or create other nuisances,
In general, any building such as noise or smells?
work which significantly alters There are special rules for
the external appearance of a people who use their home as a If the answer is ‘yes’ to any of
building — such as an extension, workplace these questions, you will have to
for example — requires planning apply to the Planning Service for
permission. Mortgage or tenancy agreements planning permission.
Most significant building may prevent you from running a There are also tax
work, such as removing internal business from your home. Check considerations for people who
walls or adding extensions, must with your lender or landlord work at home. If you have set
comply with building regulations, before you start. aside a room to work in and it has
regardless of whether planning You should also check with no domestic purpose, you may
permission is needed. your insurance provider to make be liable for capital gains tax if
If your building is listed sure you are adequately covered the property is later sold. Your
as being of architectural or for running a business from your business will be able to claim tax
historical interest, you may home. You may need to take out relief on domestic bills for the
also need to apply to the new policies to make sure your areas of the house used for the
Planning Service for listed home is protected. business.
}
Additionally, you may have to Employers And Employees On
pay business rates for the part of Health And Safety. 31
the property you use for work — Contact 01787 881165;
it depends on the circumstances Carry out a health and www.hse.gov.uk
of each case. You would pay
domestic rates for the remainder
safety induction for staff
of the property. Check for advice and ensure you stay on top
with Land & Property Services. of any changes in the law Fire protection
Next steps
}
● more than one business
32 operates in the same building Ensuring easy access
and in total there are more than
20 employees or more than ten
for disabled people
We needed to make
employees working above or
below the ground floor;
substantial changes to Make sure disabled people can
● you store certain hazardous our premises to set up access the goods and services
substances on your premises; in business. Bear in mind your business offers
● you run a hotel or guesthouse many landlords don't like
with total sleeping tenants making changes to You must not discriminate against
accommodation for more — treat less favourably — disabled
than six or with any sleeping
their property customers who use your goods
~
accommodation above the first or services, disabled people who
floor or below the ground floor; apply to work for you or disabled
● you run a betting, gaming or people whom you employ.
amusement business — or a If you provide services to
leisure premises (except where the public, you must make
swimming is the sole activity). ‘reasonable adjustments’ to
those services if disabled
The requirement to hold a fire customers would otherwise find
certificate will be removed by new it impossible or unreasonably
regulations, which are expected to Brian McMahon difficult to access them.
come into force during 2009-10. McMahon Engineering Making a reasonable adjustment
When the new rules take effect, might mean you have to:
all businesses (regardless of size) ● change a policy, practice or
will be required to show they have procedure (waiving a ‘no dogs’
fire-risk assessments and controls policy for customers with
in place. guide dogs, for example);
● provide an extra aid or service
Next steps (such as a hearing loop);
● arrange goods on shelves so
● See Carrying out a risk popular items are at a range
assessment, page 36 of shelf heights;
● Visit www.nibusinessinfo.co.uk/ ● overcome a physical feature of
fireprotection your premises where it makes
● You can get further guidance it impossible or unreasonably
on how to comply with fire difficult for a disabled person
regulations from the Northern to access your service by
Ireland Fire & Rescue Service. removing it, altering it,
Contact 028 9266 4221; www. providing a reasonable means
nifrs.org of avoiding it or providing
● Read: Fire Safety: An the service by a reasonable
Employer’s Guide. alternative method.
Contact 0870 242 2345;
www.archive.official- You are required to make
documents.co.uk/ adjustments that are reasonable
document/fire/index.htm given the circumstances. Factors
such as practicality and cost When you hand over your and electronic equipment
are taken into account. What is waste, you must complete a (EEE) you must join a producer 33
considered reasonable will differ waste transfer note clearly compliance scheme, mark your
between larger organisations describing the waste and its goods with a crossed-out wheelie-
and smaller organisations with origin and keep the note for at bin symbol, and meet recovery
limited resources. least two years. and recycling targets. Sellers of
Special rules apply if you EEE must enable users to return
Next steps dispose of hazardous waste such their waste goods (WEEE) free
as oils, acids, solvents and of charge when buying new
● See Workers with disabilities, solvent-based products (including replacements — this can also
page 71 paints) or fluorescent light tubes. be done through a collective
● Visit www.nibusinessinfo.co.uk/ A good indication that material distributor takeback scheme.
disabilities is covered by these rules is if it
● You must review your services has a hazard symbol or safety- Next steps
and premises with disabled data sheets. You must complete a
access in mind consignment note when this type ● Visit www.nibusinessinfo.co.uk/
● Contact the Equality of waste is moved or disposed of. environment
Commission for Northern Everyone involved must retain a ● Envirowise gives free,
Ireland: 028 9089 0890; copy of the note, with copies independent and confidential
www.equalityni.org passed to the Northern Ireland advice designed to help you to
● Read: What Service Providers Environment Agency. reduce waste and save money.
Need To Know. Businesses that turn over It also offers a free half-day
Contact 028 9089 0890; more than £2m and handle more waste audit. Contact
www.equalityni.org than 50 tonnes of packaging 0800 585 794;
a year must register with the www.envirowise.gov.uk
Northern Ireland Environment ● For advice on packaging
Agency or join an approved waste legislation, and
Managing and compliance scheme. You must the management and
provide evidence that you are transportation of waste,
transporting waste recovering and recycling a set contact the Northern Ireland
and packaging amount of packaging waste (a Environment Agency:
compliance scheme can do this 0845 302 0008;
Your business is responsible for you). Handling packaging www.ni-environment.gov.uk
for any waste it creates. can mean: manufacturing raw ● For more information, visit
Remember that good waste materials used for packaging; www.netregs.gov.uk
management could save you turning these raw materials into
money packaging; putting goods into
packaging; selling packaging or
You must store waste safely packaged goods; or importing Other environmental
and securely in suitable sacks, packaging.
containers or skips, making sure Businesses that transport
concerns
it does not harm the environment. waste, or arrange to collect or
All waste collected from your transport waste on behalf of Your business can affect people
business must be disposed of others need a licence from the and property around you
correctly using an ‘authorised Northern Ireland Environment
person’ such as the district Agency. Businesses that discharge
council or a waste contractor. If you manufacture electrical waste water from their premises
some premises because we assessment. It’s essential to keep eventually acquired the land
couldn’t afford to buy or build on top of your health and safety we needed, with premises
our own. We needed to get obligations, whether it’s carrying which were substantially larger
the business up and running out training that staff need or than what we had before.
without spending too much removing the risk of trips and As it turned out, the new
money. Our firm does a range falls. Because we do welding location has been good for
of engineering work, from on the premises a key safety us — it's closer to the border
manufacturing metal gates requirement for us is ensuring with the Republic of Ireland
to producing steel supports our paint and oil supplies are and has much better transport
for buildings, so we needed stored securely — there's a fire links, which enable us to easily
enough space for a workshop risk if they're not. distribute our products to both
but nowhere too expensive. The location met our needs Dublin and Belfast. And the
Initially, we leased a small for the first few years, but as we increased work space allows
place on the outskirts of built up the business we grew us to take on bigger jobs and
Armagh. Contacts in the out of it. We didn’t have enough a greater volume of work. We
engineering industry helped us space to do structural steel work also put in new toilets for our
find a suitable property within and were restricted in the work employees and a rest area
budget. The premises were we could do until we moved. with kitchen facilities.
just an open-plan shed, so we Looking back, our first premises
~
had to put in all the wiring for should have had plenty of room
our machinery and install the to expand, as it’s difficult to
basics. predict how much or how quickly
We got an insurance your business will grow.
assessor in straightaway to But when we wanted to move
have a look at the place and there was a shortage of suitable McMahon Engineering
advise us on the cover we premises in our area. We had to County Armagh
needed. wait and look further afield and Tel 07881587701
into the sewerage system must ● If your business creates of that assessment to eliminate
get consent from Northern emissions into the air you or reduce risks (see Next steps 35
Ireland Water. should contact the Northern below).
If waste water from your Ireland Environment Agency There are also special
premises goes directly into Industrial Pollution and requirements if your business
rivers, streams, lakes, ponds, Radiochemical Inspectorate: deals with dangerous substances.
canals, estuaries, coastal waters 028 9056 9296;
or groundwater, you must apply www.ni-environment.gov.uk Next steps
for a permit from the Northern ● Check with your local
Ireland Environment Agency. authority if any restrictions ● See Carrying out a risk
Businesses that cannot meet apply to your emissions or assessment, page 36
their water needs through the visit www.airqualityni.co.uk ● See Using your home as your
mains water supply may require workplace, page 30
a licence and should contact the ● Visit www.nibusinessinfo.co.uk/
Northern Ireland Environment riskassessment
Agency Water Management Unit. Health and safety ● Further information is
Any emissions into the air that available from Health &
your business creates should be
essentials Safety Works NI. Contact
checked with your local authority 028 9040 8007; www.
and the Industrial Pollution The Health and Safety at Work healthandsafetyworksni.gov.uk
Unit of the Northern Ireland (Northern Ireland) Order 1978
Environment Agency. sets out general guidelines for
The use of ozone-depleting health and safety and requires
substances such as CFCs, HCFCs every business to conduct a
and halons is being phased out risk assessment Minimum workplace
and restrictions cover their use,
storage and disposal. Employers, the self-employed
standards
and employees all have a
Next steps responsibility to ensure the There are rules designed to
safety of premises, equipment ensure the comfort and safety
● Visit www.nibusinessinfo.co.uk/ and the working environment of everyone in a working
environment even if you work on your own or environment
● For more information about at home.
allowing waste water flow into In summary, you need to In any workplace there must
the sewerage system, contact ensure as far as possible your be clean, working toilets. Mixed
Northern Ireland Water: own safety as well as that of any facilities are allowed, provided
0845 744 0088; employees, visitors, contractors they are enclosed and lockable
www.niwater.com and customers at your business from the inside. Hot and cold
● If your business discharges premises. All employees need water, soap and towels or a
waste water into the water to be aware of their own hand-dryer must be available.
environment, or if it cannot responsibilities and make sure There must be a supply of mains
meet its water needs through their working environment is as or bottled drinking water.
the mains supply, contact the safe as possible. Working areas should be
Northern Ireland Environment Every business has to formally cleaned and waste removed
Agency Water Management assess the health and safety regularly, and there must be
Unit: waterinfo@doeni.gov.uk; risks created by its working sufficient space and ventilation
www.ni-environment.gov.uk activities and act on the results for people to work comfortably.
Employees should have at whether you have taken enough manage any asbestos-related
36 least 11 cubic metres each as precautions. risks in your workplace.
a working space. Risks could be caused by
The temperature should be a range of common hazards, Next steps
comfortable — at least 16 degrees including:
Celsius if people are seated or do ● slips, trips and falls; ● Visit www.nibusinessinfo.co.uk/
not have to move much and at ● working at height; riskassessment
least 13 degrees Celsius if people ● manual handling of loads; ● Read: Risk Assessment
are active. If the temperature ● exposure to hazardous Simplified. Contact the Health
must be lower, people should not substances; and Safety Executive for
be exposed to it for too long and ● high noise levels; Northern Ireland: 0800 0320
must wear suitable clothing. If ● vibration from tools or 121; www.hseni.gov.uk
you have employees, you must equipment;
provide this clothing. ● vehicles moving around the
Smoking is prohibited in workplace;
enclosed workplaces. ● fire and explosion. Registering your
Next steps The important things you need
business
to decide are whether a hazard
● Visit www.nibusinessinfo.co.uk/ is significant and whether you Many businesses need to be
workplacestandards have it covered by satisfactory registered with health and
● For more information, read: precautions so that the risk is safety authorities
The Guide To Workplace small. You need to check this
Health And Safety. Contact the when you assess the risks. For If you have any employees
Health and Safety Executive example, electricity can kill or the public has access to
for Northern Ireland: but the risk of it doing so in your premises as part of your
0800 0320 121; an office is remote, provided business, you will probably have
www.hseni.gov.uk live components are insulated to register.
● For guidance on complying and metal casings are properly If you have employees in an
with the smoking ban, visit earthed. office or shop or in a catering,
www.spacetobreathe.org.uk If your business has relatively care or leisure facility, you
few risks, you can carry out the must register with your local
assessment yourself. authority’s environmental health
Businesses with more department. Other kinds of
Carrying out a risk complicated health and safety business — including engineering
requirements (using chemicals workshops, car repair businesses,
assessment or manufacturing, for example) nursing homes, agriculture-based
may find it useful to have the businesses and manufacturing
By law, every business has to assessment carried out by a businesses based in factories —
carry out a risk assessment specialist. must register with the Health
— even if you do not employ There is no need for the risk and Safety Executive for
anyone or you work from home assessment to be written down Northern Ireland.
unless you employ more than
A risk assessment is a careful four people. Next steps
examination of what, in your If you are responsible for the
work, could cause harm to maintenance of your premises, ● Check if your business needs
people, so you can weigh up you have a duty to identify and to be registered with the
}
Health and Safety Executive
37
for Northern Ireland (HSENI) Informing your staff
or your local authority.Contact
0800 0320 121;
about health and
Ensure you have the safety
www.hseni.gov.uk
right insurance in place
when you set up in If you have staff, you need a
business. Employers' health and safety policy and
Insuring your liability insurance is a you must keep employees up
legal requirement to date and involved with your
employees health and safety procedures
~
Stationery Office. Contact person ought to hold a first-aid
0870 242 2345 certificate.
● For more information, You must supply all employees
read: An Introduction To with suitable protective
Health And Safety. Contact equipment for their job, if risks
Health and Safety Works to their health and safety cannot
NI: 028 9040 8007; www. be controlled in other ways. You
healthandsafetyworksni.gov.uk must not charge employees
for protective equipment they
require.
Protective equipment should Brian McMahon
Protecting your be maintained to a high standard, McMahon Engineering
stored appropriately and
employees discarded once it is no longer
effective. Personal protective
There are specific regulations equipment includes protection for
that help businesses minimise the body, head, eyes, feet, hands
the risks of accidents and arms. This includes goggles,
happening hard hats, safety boots, hairnets,
crash helmets, gloves, overalls
You must check and maintain and aprons.
all equipment on a regular basis Precautions should be
to ensure that it complies with put in place to minimise
the necessary safety regulations. your employees’ exposure to
You must keep certificates to hazardous substances. Staff who
show certain types of equipment work or will work with potentially
have been tested. dangerous substances need to
You also have a duty to be informed of hazards, fully
assess the risks to your trained and made aware of their
employees if their job involves health and safety duties.
heavy loads or repetitive There are other rules that
handling of objects. Potentially apply to specific types of
hazardous handling operations business or business activity.
need to be identified and Check with the Health and Safety
appropriate actions put in place Executive for Northern Ireland.
to reduce the risk of injury.
Protecting your
intellectual property
might avoid your having to go to Trade marks do not need to
40
Business names court. be registered. Provided sufficient
trading reputation and goodwill
and domain names Next steps have been built up in a mark, a
degree of protection is afforded
The name of your business ● See Choosing the right name, by common law.
is generally protected by page 8 For a court action based on an
the common law principle of ● Visit www.nibusinessinfo.co.uk/ unregistered mark to succeed,
passing off nameandtrademark you have to show that the mark
● It is best to get legal advice embodies a reputation and that
Passing off can occur if your at an early stage if you think its use by somebody else is liable
business name has, through somebody else is using your to confuse or deceive the public
use, established a reputation for business name or trade mark, and has done actual damage to
trading in a particular field and a or something close to it, either your business.
competitor starts using the same generally or as an Internet Registration of a trade mark
or a similar name for the same domain name gives an immediate right to stop
or similar goods and services. ● Nominet UK can give advice someone using the same or a
You can take court action on the on domain names and their similar mark on the same or
basis that your rival is falsely registration. Contact similar goods and services. You
passing off their goods or 01865 332211; www.nic.uk do not have to prove reputation
services as yours. ● Check availability of domain or demonstrate confusion.
Sometimes duplication of names with Nominet UK at Owners of trade marks are
names is caused by genuine www.nic.uk or NetNames at advised to register the trade
oversight and may be settled by www.netnames.co.uk mark with the UK Intellectual
negotiation, but you should seek Property Office (UK-IPO) where
legal opinion at an early stage. this is possible. A trade mark
A domain name (your website is registered for ten years and
address) has to be registered for Protecting your can be renewed every ten
use on the Internet. Nominet UK years. Once registered it can be
is the registry for .uk Internet
trade marks renewed indefinitely.
names and also provides advice Registered trade marks can
on registering and maintaining Trade marks are symbols, be enforced by going to court.
your Internet name. signs or even words, sounds You can pursue damages and
If you believe that somebody or shapes which distinguish an injunction to stop further
else has registered your the goods and services of one infringement.
business name, brand name trader from those of others
or registered trade mark as Next steps
a domain name, and that this Trade marks help customers and
constitutes an infringement of a other businesses recognise a ● Visit www.nibusinessinfo.co.uk/
trade mark or an act of passing business and identify it with the intellectualproperty
off, you should seek a qualified quality of product or service for ● For more information about
legal opinion. which it is known. trade marks, contact Invest
Nominet UK cannot offer They are often the single NI’s Technical Advisory Unit:
legal advice but it may be able, most valuable marketing tool 028 9069 8825;
through its Dispute Resolution a business will have, whatever www.investni.com
Service, to help if a dispute its size, and can be essential in ● UK-IPO provides further
arises over a domain name. This developing a brand. guidance on its website and
}
will answer your questions on process, a new apparatus for
how to protect your ideas or performing a process or possibly 41
find out about other people’s a new use for a known product.
intellectual property rights. Assess your business, Patented inventions can simply
Contact 0845 9 500 505; be improvements on an earlier
www.ipo.gov.uk
identify its intellectual invention.
● Check that any product or property, and decide what You are not obliged to apply
service you are planning to you need to protect for a patent to protect your
~
offer does not infringe any product or processes — you could
existing rights. Penalties can rely on keeping the information
be severe, whether the breach confidential. But without a patent
is deliberate or not. Trade you would lack the right to stop
marks, registered designs and others from making, selling or
patents can be checked online importing the product or process
at the UK-IPO website. Contact you have developed.
www.ipo.gov.uk Patents, which can protect
● A trade mark attorney can your invention for a maximum
provide professional paid-for of 20 years, can be a valuable
advice. Contact the Institute of commercial asset.
Trade Mark Attorneys at ● By preventing competitors
020 8686 2052; trading in products or using
www.itma.org.uk Malcolm Emery methods covered by the
● Members of the Chartered The One Switch patent, patent owners can
Institute of Patent Attorneys get premium prices for their
can also advise you. products.
Contact 020 7405 9450; ● The patent owner can earn
www.cipa.org.uk royalties by licensing products
that use the patent.
● Patents can be bought and
sold like any other asset.
Patents and their
Patents are enforced by legal
benefits action. You can get damages
and an injunction to stop further
Patents protect your infringement.
inventions and prohibit others
from making, using or selling Next steps
an invention without the
inventor’s permission ● Visit www.nibusinessinfo.co.uk/
intellectualproperty
Patents, which are registered ● For more information about
at the UK Intellectual Property patents, contact Invest NI’s
Office (UK-IPO), are concerned Technical Advisory Unit:
with the functional and 028 9069 8825;
technical aspects of products www.investni.com
and processes. The invention ● UK-IPO provides further
could be a new product, a new guidance on its website and
~
affected our ability to go Our product will evolve and the
to market. You must try to technology we use to create our
allow for any delays with your product will change, too. We’ve
application. already introduced another novel
We began with a lot of desk- design for StandbyOff™ and The One Switch
based research. Simple Google we’ve filed patents applications Ballymena, County Antrim
searches quickly revealed all over the world. You must think Tel 028 2565 8616
products that promised similar ahead. www.theoneswitch.com
will answer your questions on system for copyright in the high. This includes photocopying,
how to protect your ideas or United Kingdom. It comes into scanning and downloading 43
find out about other people’s operation automatically when copyrighted material from the
intellectual property rights. it is ‘fixed’ in some manner Internet.
Contact 0845 9 500 505; — when it physically exists as a In certain circumstances
www.ipo.gov.uk manuscript or software program, you do not need permission to
● Check that any product you for example. The owner has the copy or use copyright material
are planning to offer does legal responsibility to prove they — limited use is allowed for study,
not infringe any existing own the copyright. reviewing, reporting current
rights. Penalties can be Generally, the owner of the events, teaching in schools, court
severe, whether the breach is copyright is its first creator proceedings and non-commercial
deliberate or not. Trade marks, or author (or their employer research.
registered designs and patents if the material is produced in
can be checked online at the the ordinary course of their Next steps
UK-IPO website. Visit employment).
www.ipo.gov.uk But be careful when using a ● Visit www.nibusinessinfo.co.uk/
● Patent attorneys, members contractor. Photographers and intellectualproperty
of the Chartered Institute of website and graphic designers, ● For more information about
Patent Attorneys, provide for example, retain copyright copyright, contact Invest NI’s
professional paid-for advice ownership for the work unless Technical Advisory Unit:
on patents. The institute their contract says otherwise. 028 9069 8825;
organises clinics giving free There is no copyright in a www.investni.com
basic advice to innovators. name, title, slogan or phrase, ● UK-IPO provides further
Contact 020 7405 9450; although you may be able to guidance on its website and
www.cipa.org.uk register them as trade marks. will answer your questions on
Copyright cannot protect an how to protect your ideas or
idea, although it may protect a find out about other people’s
piece of work that expresses an intellectual property rights.
Understanding idea. Contact 0845 9 500 505;
You can buy, sell or transfer www.ipo.gov.uk
copyright copyright, or you can license ● Check that any product or
others to use the work — a service you are planning to
Copyright gives rights to the song or software, for instance offer does not infringe any
creators of original literary, — while paying you royalties. You existing rights. Penalties can
dramatic, musical and artistic retain ownership over the rights be severe, whether the breach
works and published editions themselves. is deliberate or not. Trade
of works, sound recordings, Copyright in literary, marks, registered designs and
films, videos, broadcasts, cable dramatic, musical or artistic patents can be checked online
programmes and computer work lasts until 70 years after at the UK-IPO website. Visit
programs the death of the author. Sound www.ipo.gov.uk
recordings, broadcasts and cable ● Patent attorneys, members
The creator of the work can programmes are protected of the Chartered Institute of
use copyright to control its for 50 years. Patent Attorneys, provide
exploitation for money and any Remember, you must not copy professional paid-for advice
copying, adapting, publishing, anything without a copyright- on copyright. Contact
performing and broadcasting. holder’s permission: court orders 020 7405 9450;
There is no registration for compensation can be very www.cipa.org.uk
At present there is no such Convention, under which countries and simplifies filing
thing as a world patent, and to protection can be obtained procedures if protection is 45
get protection abroad there are in one or more European required in more than one of
three choices: countries by a single the member states.
● separate national applications application to the European
can be made in each country Patent Office; Copyright is automatic in many
in which you are seeking ● the Patent Cooperation countries, though you may need
protection; Treaty, which includes most to mark your work with the
● the European Patent of the major industrialised © symbol, your name and the
year of publication. However,
copyright is not widely respected
Software copyright and licences in some countries, and making
claims through a court in those
When using software you on which you may use the countries can be difficult.
must comply with the software; unless it states Through OHIM a Registered
conditions of the licence otherwise, you may only use Community Design provides
and the software publisher’s one copy of the software a single registered right
copyright. Do not make on one computer; however, giving design protection in
illegal copies or use software many licences allow you to all EU countries. A number
on more computers than the retain up to two copies for of other countries (mainly
licence allows back-up purposes; Commonwealth) recognise UK-
● allowing employees to registered designs without the
You must not breach the install unlicensed software need for local registration.
licence of any computer on your system;
software you use in your ● allowing employees or Next steps
business. The licence sets business contacts to
out the software publisher’s make unlicensed copies of ● Visit www.nibusinessinfo.co.uk/
conditions for your use of the software; intellectualproperty
software. ● using software for ● UK-IPO provides further
You also must not commit commercial purposes when guidance on its website and
software ‘piracy’ by doing it is provided free or at a will answer your questions on
things such as making illegal reduced price for academic how to protect your ideas or
copies. or personal use. find out about other people’s
Software offences include: intellectual property rights.
● making or selling illegal Next steps Contact 0845 9 500 505;
copies of software; www.ipo.gov.uk
● installing or using illegal ● For more information on
copies, even unknowingly; software piracy and
● allowing a consultant to licensing contact the
install unlicensed software Federation Against Software
on your system; Theft (01628 622121;
● using legally acquired www.fastiis.org.uk) or the
software on more Business Software Alliance
computers than the licence (020 7340 6080;
allows; the licence will state www.bsa.org/uk)
the number of computers
Is your business in a
specialised sector?
Standards Agency: and any type of establishment
46
Food businesses 028 9041 7700; hosting public entertainment
www.food.gov.uk events have to apply to their
● The Food Standards Agency local authority for a licence. Fees
If you run a business which produces Starting Up: Your vary, depending on capacity and
makes, handles or sells food, First Steps To Running A type of entertainment.
you must comply with hygiene Catering Business and a range
rules to make sure the food is of Safer Food, Better Business Next steps
safe to eat packs to help you manage
food safety. Contact 028 9041 ● To find your nearest county
Food businesses must meet a 7700; www.food.gov.uk court, contact the Court
range of requirements relating to ● The environmental health Service: 028 9032 8594;
the design of their premises, the department of your local www.courtsni.gov.uk
way staff handle food and the authority can advise on ● Links to all local authority
temperature at which food is kept. specific food-related issues websites can be found at
Food businesses must register — contact it early if you are www.direct.gov.uk
with their local authority at considering setting up a
least 28 days before they begin food business. A list of local
trading. They must also provide authority websites and phone
details of any premises used for numbers can be found at Health and care
storing, selling, distributing and www.direct.gov.uk
preparing food — from cafés, ● For more information, read:
services
restaurants and market stalls to Food Hygiene: A Guide for
facilities in the home and food- Businesses; Childminders, care homes and
delivery vehicles. Food Law Inspections And other businesses that look
Some other types of food Your Business. Contact after people have to register
business must be approved or 028 9041 7700; with the relevant body
licensed before they begin trading www.food.gov.uk
(such as butchers’ shops). Boarding schools and residential
Businesses selling packaged special schools should contact
food to consumers or to other the Department of Education
food businesses must include Entertainment and and the Regulation and Quality
certain information on the Improvement Authority (RQIA).
packaging.
leisure Further education colleges
There is a range of product- should contact the Department
specific regulations you may Businesses which sell alcohol for Employment and Learning.
have to comply with. These or provide entertainment or Most health and social care
generally affect manufacturers leisure services to the public service providers must register
of animal-based products such often need a licence with the RQIA. These include:
as dairies. Contact your local ● children’s homes;
authority’s environmental health Public houses, restaurants, ● day care settings;
department for guidance. nightclubs, hotels, shops and ● independent clinics;
other establishments selling ● independent hospitals;
Next steps alcohol must get a licence from ● nursing homes;
their local county court. ● residential care homes;
● For more information about Cinemas, theatres, indoor ● domiciliary care agencies;
food law, contact the Food sports venues, night clubs ● adult placement agencies;
Trading regulations
and data protection
● refusing to leave a consumer’s If, before a contract is formed,
48
Unfair trading home when asked to or you make factual claims about a
pestering someone with product or service which turn out
persistent phone calls or to be untrue, and the customer
Misleading descriptions of emails. can show they have based
the goods and services your their decision to buy on these
business provides or unfair Next steps representations, they may be able
marketing and sales practices to make a claim against you.
are prohibited ● Visit www.nibusinessinfo.co.uk/ Certain terms are implied in
tradingstandards every transaction for the sale and
Descriptions of your goods ● For more information, read: supply of goods. The goods must:
must not be misleading. Consumer Protection From ● match any description given
The rules cover descriptions Unfair Trading Regulations of them;
given orally, in writing (in an 2008. Contact 028 9025 ● be of satisfactory quality;
advertisement or brochure, for 3900; www.detini.gov.uk/ depending on the
instance) or as an illustration deti-consumer-index circumstances, this could
(perhaps in an advertisement cover aspects such as
or on packaging). suitability for their intended
You must deal with consumers purpose, appearance and
fairly and honestly. Unfair Terms and conditions finish, freedom from minor
practices which are likely defects, safety and durability;
to harm the interests of the
of sale ● be fit for their purpose; the
average consumer are not purpose for which goods will
allowed. These include: When a customer purchases be used may be obvious (a
● conduct that fails to meet the goods or services from your pen, for example); but if a
standard of honest market business, you are entering into customer expressly indicates
practice and acting in good a legal contract they want to use goods
faith; for a particular purpose,
● misleading practices (such By displaying priced goods in the goods must meet this
as leaving out important a shop or window display, in a requirement and you must tell
information); brochure or on a price list, you the customer if you doubt the
● aggressive sales tactics. are inviting customers to make goods’ suitability.
you an offer for the goods —
Various unfair tactics are which you can either accept or If the goods do not meet these
specifically prohibited, including: refuse. A contract is normally conditions, customers can reject
● falsely claiming accreditation formed when payment is made. the goods and demand a full
(eg, pretending that you are At this point you and your refund provided they have not
registered with a trade body customer have made formal legal accepted the goods. Acceptance
when you are not); commitments to one another — is signified by them telling you
● advertising a product at a though this may not be the case they have accepted the goods
price that you know you will in distance-selling arrangements. (they must have had the chance
not be able to honour or The contract cannot be cancelled to examine them first), altering
with the intention of selling without both parties' consent them in some way or keeping
a different (more expensive) unless either party is in breach them for a reasonable length
product; of contract (although there is a of time (this varies according
● phony competitions; cooling-off period for distance to the nature of the goods). But
● pyramid selling schemes; sales — see Next steps below). they are not considered to have
}
accepted goods if they allow you those you decide in advance
to repair them when they are rather than negotiate with an 49
first found to be faulty. When individual consumer. They do not
goods have been accepted the When you collect or store have to be in writing, but you
customer cannot reject them. should usually include them in
But the customer may still be
customer information, you the ‘small print’ on the back of
entitled to some compensation. must comply with data order forms, bills and so on. They
If the goods are faulty, the protection rules. That may should be expressed in plain and
customer can ask for a repair or include having to notify the easily understandable language
replacement. If neither of these Information Commissioner and customers should have an
is feasible the customer can then opportunity to read them before
~
ask for a full or partial refund. entering into a contract.
Customers have no rights in If one of these standard terms
relation to defects brought to is unfair, a consumer will not
their attention before a sale or be bound by it. However, this
if they examined the goods and does not cover terms which set
any defects would have been the price (provided they are in
readily noticeable. Neither can plain and easily understandable
they complain if they change language), terms which tell you
their mind (unless the contract what you are and are not getting
was concluded at a distance: Oscar Woolley for your money or terms which
see Next steps below), damage Suki Tea must be included in the contract
the goods themselves or ignore by law.
your advice about the product’s An unfair term is one which is
suitability. not made in ‘good faith’ and which
Services have to be carried out puts consumers at a disadvantage
with reasonable skill and care, for by — for example — imposing
a reasonable price (unless a price unfair penalties, restrictions or
has already been agreed) and obligations or making it unclear
within a reasonable time (unless what they have to pay.
a date was agreed at the time the Potentially unfair terms
contract was made). typically involve one or more of
You must not try to restrict the following problems:
consumers’ statutory rights or ● limiting or excluding the
impose contract terms which try vendor’s legal obligations;
to exclude or limit your liability ● limiting or excluding the
for death or personal injury consumer’s legal rights;
resulting from your negligence. ● imposing excessive financial
In contracts with other penalties on the consumer;
businesses (but not consumers) ● allowing the vendor to retain
you may be able to exclude pre-payments if the contract is
or limit your liability for any cancelled;
other types of loss or damage ● binding the consumer to
resulting from negligence — but hidden terms;
you will have to show that this is ● allowing the vendor to change
reasonable. the terms after they have
Your standard terms are been agreed (forcing the
}Originally we planned to
open a teahouse, but realised
we’d enjoy more success by
to collect payments, as well
as a secure method by which
customers can enter their
Online infusion: Suki Tea profits
from selling products online
selling our exclusive teas to details. Setting up our merchant buyers, we want existing
cafés, restaurants and hotels. account wasn’t difficult. We customers to keep coming
Naturally, we realised we could received advice from our site back. For that to happen,
sell more if we made our designer and spoke to our bank, people must have confidence
products available online. which specialises in merchant in your ability to safeguard
We didn’t start selling online accounts. their details and use
until 2006 because it took Because we were new to information properly. It’s not
a while to sort out. Online running a business we had to just about making sure you
sales now account for about carry out a lot of research and don’t break the law, it’s also
15 per cent of our turnover seek advice. We did an Invest NI about giving your customers
but we expect this figure to course that provided lots of help, complete faith in your business
rise considerably because including advice about setting and added peace of mind when
we’re launching a new website up a website and complying with they buy from you online.
and have been working with e-commerce rules. Complying with online
a consultant to find ways to When you collect or store selling rules isn’t difficult,
maximise our online presence. customer information you especially if you seek advice,
Most of our customers must comply with data which needn’t even cost you
live in the UK but we sell protection rules. That may anything. The information is
throughout the world — we include having to notify the out there.
even have a customer in Iraq. Information Commissioner,
~
There are legal which is what we had to do.
requirements when your You must store information
business sells online so securely and use it only for the
make sure you display all the purpose you gathered it. We
information you're legally place great importance on Suki Tea
obliged to on your website. online security, and pay a lot of Belfast, County Antrim
You'll also need a shopping money for it. Tel 028 9033 0938
cart function on your site As well as generating new www.suki-tea.com
}
if payment is required in guarantees. This has to be done
52 advance, your postal address; — at the latest — by the time
● description of the goods or goods are delivered or, for a
services; service, before or at an early Complying with online
● price, including all taxes; stage during its performance.
● delivery costs if applicable; With some exceptions, the
selling rules isn’t difficult,
● arrangements for payment; customer has a cooling-off especially if you seek
● arrangements and date period of at least seven working advice, which needn’t even
for delivery of goods or days during which time they can cost you anything. The
performance of services cancel the order for any reason: information is out there
(within 30 days of the order if they must give you notice by
~
no date is specified); durable means such as post, fax
● information about the right to or email. For goods, the seven
cancel the order; days runs from the day after
● how long the price or offer they or the information are
remains valid; received, whichever is later. The
● minimum duration of a position is more complicated
contract to supply goods or with services. The cooling-off
services continuously (eg period generally runs from the
mobile phones) or day after the contract date or
recurrently (such as a monthly after the information is received,
book club); whichever is later, but there Oscar Woolley
● the cost of any premium-rate are exceptions depending on Suki Tea
lines customers have to use. what has been agreed with the
customer.
You must also specify if you want Businesses which provide a
to offer substitute goods if those service which lasts for more than
ordered are not available and, if one year or has no specified end
this is the case, make it clear you date (providing cable television,
will meet the costs if any such for example) also have to
goods are returned. send details on when and how
When an order has been customers can end the contract.
placed, you have to provide the If your business uses cold-
customer with confirmation call telephone selling, callers
of this information by durable must clearly state the business’s
means such as post, fax or email, name and the call’s commercial
unless they have already been purpose at the beginning of the
given it (in an advertisement or conversation.
catalogue, for instance). Additional rules apply if you
You must also include sell electronically — via the
information on when and how Internet, email, mobile phones or
the customer can cancel the digital television, for example.
order, who will be responsible for
the costs if goods are returned, Next steps
a full postal address where they
can contact you and details of ● See Selling and marketing
any after-sales services and electronically, opposite
● Visit www.nibusinessinfo.co.uk/ they have been sent; You must also give users of
tradingstandards ● for unsolicited emails to your website the opportunity to 53
● More information is available consumers, sole traders or refuse cookies — small files which
from Trading Standards. unincorporated partnerships, allow you to recognise and track
Contact 028 9025 3900; obtain the recipient’s prior how visitors use your website.
www.detini.gov.uk/ consent unless you collected Data-protection rules prohibit
deti-consumer-index their email address during a you from revealing recipients’
previous sale or negotiation email addresses in emails being
and are marketing similiar sent to a bulk mailing list. Putting
products and services and the recipients’ addresses in the ‘bcc’
Selling and marketing recipients had the opportunity field of your email software can
to opt out when their details prevent this.
electronically were collected; Businesses selling over the
● enable recipients to identify Internet or on digital television
Businesses that sell or market unsolicited commercial emails must also comply with rules on
online must provide potential immediately; distance selling.
customers with information ● provide a valid email address
and protect their privacy recipients can use to opt out Next steps
from your marketing mailings;
If you advertise or sell goods or ● clearly identify any discounts ● See Distance selling, page 51
services to consumers online or promotions and any ● Visit www.nibusinessinfo.co.uk/
— over the Internet, by email, qualifying conditions that ebusiness
on interactive digital television apply; include information ● For more information, read:
or using mobile phone text about membership of Complying With The
messages — you must: professional bodies (such as E-Commerce Regulations 2002
● provide customers and CORGI) if applicable. (URN 02/1131). Contact
potential customers with the 0845 015 0010;
full name and contact details Mobile phone text messages www.berr.gov.uk/publications
of your business, including an are likely to be too short for Electronic Communications
email address; all necessary details — in this Guidance: Part 1 - For
● give your VAT number if case you can direct customers Marketers. Contact 01625 545
applicable; to information on your website 745; www.ico.gov.uk
● give a clear indication of instead.
prices if you refer to them, If you allow customers to
together with details of any place orders online, you must:
associated taxes and ● clarify what steps are involved Accepting credit and
delivery costs. to conclude a contract;
● give customers the chance to
debit cards
If you use electronic check their order and correct
communications to promote any errors before placing it; Accepting credit and debit
goods and services — such as ● acknowledge receipt of any cards will mean opening a
marketing emails — you must: orders electronically and different type of bank account
● make sure they are clearly without undue delay; to receive payments
identifiable as commercial ● make sure customers can
communications; store and reproduce any terms You must open a merchant
● clearly identify the person or and conditions you supply. account with an ‘acquiring bank’
organisation on whose behalf if you want to accept credit
}
But court action should always any single transaction;
be a last resort. Even if you win, ● estate agents; 55
there is no guarantee you will ● trust or company service
get your money and you will providers;
It’s not just about making
probably have to pay at least ● independent legal
some of your costs, whatever the sure you don’t break the professionals;
outcome. law, it’s also about giving ● accountants, tax advisers,
your customers complete auditors and insolvency
Next steps faith in your business practitioners;
~
● casinos.
● Visit www.nibusinessinfo.co.uk/
debt Businesses affected must:
● The Court Service can tell you ● register with HM Revenue
where your nearest county & Customs unless already
court is. Contact supervised by a designated
028 9032 8594; body such as the Financial
www.courtsni.gov.uk Services Authority or the Law
● For information about making Society;
a small claim, read: Small ● identify and manage the
Claims Guide. Visit money laundering risks in
www.courtsni.gov.uk/en-gb/ their business;
publications Oscar Woolley ● pay an annual fee based
Suki Tea on the number of premises
through which they trade;
● report changes during the
Preventing money registration year;
● train staff in preventing
laundering money laundering;
● verify the identity of certain
Certain businesses — including types of customers;
those which accept large cash ● keep records of customers and
payments — must take steps to transactions for at least five
avoid money laundering years;
● set up procedures to report and
Businesses which must put anti- identify suspicious transactions.
money-laundering procedures in
place include: Next steps
● money service businesses
(MSBs) — bureaux de change, ● Visit www.nibusinessinfo.co.uk/
money transmitters and third- moneylaundering
party cheque cashers; ● You can get further guidance
● high-value dealers (HVDs) — from HM Revenue & Customs.
businesses that deal in goods Contact 0845 010 9000;
and accept (or are prepared to www.hmrc.gov.uk/mlr
accept) in cash the equivalent
of 15,000 euros or more
(£13,000 approximately) for
56
Insuring against
liabilities
~
damage caused to customers or other business contacts,
or the public, although this is you must treat this information
not compulsory with care and what you do with
it is covered by the law
You are not obliged to insure
your business against the effects The data-protection laws cover
of any harm it may cause to the ‘processing’ of any personal
customers or the public — but it information — which means
is advisable. obtaining, holding, retrieving,
Public liability insurance disclosing, erasing or destroying
covers claims made following an it. The laws cover information
incident related to your business’s held on computers and in certain
property, premises or staff. manual filing systems.
Product liability insurance Oscar Woolley Businesses which process
protects against claims following Suki Tea information using computers —
incidents caused by products or which use CCTV equipment
you sell. — generally have to notify the
Professional indemnity Information Commissioner of the
insurance covers businesses that information they are collecting,
offer professional services or and for what purpose. Notification
advice against any legal action costs £35 for businesses with
launched by a customer. up to 250 employees, and must
Remember that if you have be renewed annually. But many
employees, you must have businesses will not need to
employers’ liability insurance. notify. You will be exempt if you
only process people’s personal
Next steps information for a limited number
of core business activities. These
● If you have employees, you are:
must purchase employers’ ● staff administration
liability insurance. See Insuring — processing information for
your employees, page 62 personnel purposes such as
● Visit www.nibusinessinfo.co.uk/ hiring, paying, managing,
businessinsurance disciplining and dismissing
● Talk to your insurance broker staff;
or company, or your financial ● advertising, marketing and
adviser, about the usefulness public relations activities
of liability and indemnity relating to your business or its
insurance goods or services; you keep
this exemption even if you buy — normally in writing — who marketing purposes if they ask
in information for marketing you are, why you want the you not to do so. 57
purposes; information and what you are Do not transfer information to
● accounts and records: this going to do with it. a country outside the European
covers keeping information on Make it clear if you intend to Economic Area (the European
past, existing or prospective give the information to anyone Union countries plus Iceland,
customers and suppliers else — this can be a specific Liechtenstein and Norway) unless
necessary to help you keep third party or a more general you are sure the country has
your accounts, make decisions description such as ‘other adequate data-protection laws or
about whether to do business companies’ or ‘suppliers’. Your you have the individual’s consent.
with a particular customer or standard documentation must You must take particular
supplier (except information provide this information and care with sensitive information
obtained from a credit give people the chance to opt covering areas such as a
reference agency) and make out of having their information person’s racial or ethnic origin;
financial and management processed. political opinions; religious
forecasts. Make sure information is beliefs or beliefs of a similar
accurate and up to date. If nature; trade union membership;
Even if you do not need to notify, an individual tells you the physical or mental health or
you must still comply with data- information you hold on them is condition; sexual life; any actual
protection laws. These laws inaccurate, consider correcting it or suspected criminal offence
are presented as a series of and advise the individual of your and any proceedings being
‘principles’. The principles say intentions. Delete information brought in connection with this.
that information must be: you no longer need. Keep it You can only process such
● fairly and lawfully processed; securely — make sure any rooms information if:
● processed for limited purposes and IT systems in which you ● the person involved has freely
and not in any way that is keep personal information are given explicit written consent
incompatible with those secure — and train staff in good to its use for clearly stated
purposes; information-handling practices. purposes;
● adequate, relevant and not You may also have to provide ● it is required for legal reasons;
excessive; individuals with a copy of ● it is needed for ethnic or anti-
● accurate; information you hold about them discriminatory monitoring.
● not kept for longer than if they make a written request
necessary; for it (known as a ‘subject access Next steps
● processed in line with the request’). You can charge a fee
rights of the person that the of up to £10 for providing this ● Visit www.nibusinessinfo.co.uk/
information is about; information. It must be sent ebusiness
● secure; promptly to the individual in an ● For more information, read:
● not transferred to countries easily understandable form — Getting It Right — A Brief
that do not have adequate and in any event within 40 days Guide To Data Protection For
protection of information. of receiving the request. Give Small Businesses. Contact
details of why you are processing 08456 306060 or the
To comply with the principles, their information, anyone it may Northern Ireland office on 028
you must only collect the be passed to and any information 9026 9380; www.ico.gov.uk
information you need. Work you have about the source of the ● Check whether you have to
out exactly what information data. notify with the Information
you need, and about whom. Do not use an individual’s Commissioner’s notification
Inform the individuals concerned personal information for direct- line. Contact 01625 545 740
Recruiting your
first employee
for three years. can provide information on
58
How to recruit and While asking about candidates’ employment legislation and
experience outside the workplace rights. Contact 028 9032 1442;
select employees can be helpful if it relates directly www.lra.org.uk
to the job, it can be unlawful
You have to make recruitment to stray into areas concerning
decisions in a fair and non- personal circumstances, such as
discriminatory way marital status. Eligibility to work in
Be careful what you write in
You must not discriminate interview notes. Under data-
the United Kingdom
against a candidate on the protection laws candidates may
grounds of race; sex (which have the right to see any notes It is a criminal offence to
includes marital status, same- made during the interview. employ someone who is not
sex civil partnership and When obtaining references, do entitled to be in the UK and
gender reassignment); sexual not ask for information unrelated to do the work in question.
orientation; disability; age; to the person’s ability to do the There is a range of documents
religion or political opinion at job or conjecture about the you can ask for as proof of
any stage of the recruitment applicant. eligibility to work
process, from job advertisements If you recruit through an
and application forms to employment business or Before taking on a new employee,
interview questions and the employment agency, you have you should ask them to provide
contractual terms you offer. some protection, including the original documents showing that
There are a few limited right not to be introduced to a they have the right to work in
exceptions to the anti- potential worker until there is the United Kingdom. These can
discrimination rules. For example, confirmation: include:
some restaurants that serve ● of their identity; ● a British passport;
food in a particularly authentic ● that they have the relevant ● a passport from another country
setting may be allowed to recruit qualifications, skills and with an endorsement certifying
from particular racial groups. experience; a right of abode in the UK;
With care work, it may be ● that they are willing to accept ● a passport or national
necessary to appoint someone the position. identity card of a European
of a particular sex for reasons of Economic Area (EEA) country
privacy and decency. Next steps or Switzerland. The EEA
It is best to get advice if you consists of the European Union
think you have a genuine reason ● See Workers with disabilities, (EU) countries plus Iceland,
to apply an exception. page 71 Liechtenstein and Norway.
Businesses with more than ● Visit www.nibusinessinfo.co.uk/ Nationals of the following
ten employees working over 16 recruiting eight EU countries must
hours a week must register with ● The Equality Commission can register with the Home Office’s
the Equality Commission and provide further advice. worker registration scheme:
monitor the religious profile of Contact 028 9089 0890; the Czech Republic, Estonia,
their workforce. This involves www.equalityni.org Hungary, Latvia, Lithuania,
asking employees and job ● Read: Step By Step Guide To Poland, Slovenia and Slovakia.
applicants — in writing — whether Monitoring. Contact Employers should check that
they are Protestant, Roman 028 9089 0890; workers from these countries
Catholic or neither. You must www.equalityni.org have registered within one
keep records of this information ● The Labour Relations Agency month of their starting work.
}
Unless exempt, nationals of and relate to the person in
a further two EU countries – question. Keep copies for as long 59
Bulgaria and Romania – must as the individual works for you
obtain authorisation before Before taking on staff plus a further two years.
starting to work;
● a UK residence permit issued
I took advice from my Next steps
to an EEA or Swiss national; accountant and HM
● a permanent residence card Revenue & Customs. I also ● Visit www.nibusinessinfo.co.uk/
issued by the Home Office or went on a few courses to migrantworkers
UK Border Agency to a family ensure I understood how ● More information is available
member of an EEA or Swiss from the UK Border Agency.
national who is resident in the
to write an employment Contact the Employers'
UK; contract and what my Helpline: 0300 123 4699;
● a full UK birth certificate or employees’ rights were www.ukba.homeoffice.gov.uk
~
adoption certificate, or a birth
or adoption certificate issued
in the Channel Islands, Isle of
Man or Ireland, together with Drawing up
an official document issued
by a Government agency or Kim McDowell
employment contracts
former employer showing the Little Stars Private Day Nursery
applicant's name and National An employment contract
Insurance number. exists as soon as a job offer
is accepted, even if it is not
Other documents may also be written. The terms of the
acceptable, but only show that the contract can be written,
applicant has a limited right to be spoken or implied by the nature
in the UK. If an applicant provides of the job being offered — or a
these documents, you must combination of all three. You
recheck their eligibility to work must give employees a written
at least every 12 months. These statement setting out the main
documents include: terms and conditions
● a passport showing that the
holder is allowed to stay in the When a job candidate accepts
UK and do the type of work your offer of employment
you are offering, together with — which can be made orally
a work permit if required; or in writing — you have then
● a residence card issued to a entered into an employment
family member of an EEA or contract. The contract can be
Swiss national; conditional — perhaps depending
● a verified asylum application on references or a medical
registration card (ARC) stating examination.
that the holder is allowed to If you expect the person to be
take employment. working for you for one month
or more, you must draw up a
You must take reasonable steps written statement which sets out
to ensure documents are valid some of the main terms and
before. Now I trust my instincts For example, you have to recommend this as it
more but always make sure be particularly careful not significantly cuts down the time
there is another interviewer to discriminate on religious doing the payroll takes.
present. This gives me a second grounds. Obviously when we I started looking for staff
opinion and a witness if anyone advertise we’re looking for both about three months before
tries to make a claim against us male and female applicants but opening. I wanted time to find
later, although luckily this has It’s very rare for a man to apply. suitable people and to carry
never happened. All our employees have reference checks. We also have
When we are interviewing to be over 18, qualified and to do police checks because of
we grade applicants from one have a minimum of two years’ the nature of the work.
to five. We also take things like experience but these are We need a certain ratio of
confidence, appearance and requirements stipulated by Social carers to children, so to make
personality into consideration Services rather than by me. sure I had enough employees
and look through their As soon as I realised I I took on six employees
references, employment history would be taking employees immediately. We advertised
and how long they have stayed on I contacted HM Revenue in a local paper and in the job
with past employers. & Customs. It sent me all centre.
When I have decided to offer the information I needed for
~
someone a job I call them first working out National Insurance
and then send a letter out with contributions and PAYE, including
a contract. The letter states the the tax codes so I could work it
offer is subject to references. all out myself. I found it relatively
The contract includes details of straightforward.
holidays, sickness, rates of pay, My accountant set up our Little Stars Private Day Nursery
discipline and grievance issues payroll system using accounting Bangor, Co Down
and their duties. software. I would definitely Tel 028 9145 5446
conditions of the employment representatives, such as a ● See Paid annual leave, page 67
contract. Give it to the employee trade union, which directly ● See Discipline and grievance 61
within two months of their affect their terms and issues, page 80
starting to work for you. Keep a conditions. ● Visit www.nibusinessinfo.co.uk/
copy for your own records — while writtenstatement
it is not a contract in itself, it can Some details can be set out ● The Labour Relations Agency
provide evidence of the terms of either in the written statement can provide information on
the contract if a dispute arises. or in separate documents employment legislation and
The written statement must (such as a job-offer letter or a rights. Contact 028 9032 1442;
include: company handbook) which the www.lra.org.uk
● your business’s name and the statement refers to and which ● Read: Written Statement Of
name of the employee; the employee can get hold of Employment Particulars (ER2).
● the date their employment easily. These include: Contact
with you began; ● details of sick leave and sick www.delni.gov.uk/er2
● the date the employee’s pay entitlements;
period of continuous ● any pension entitlement;
employment began. This is ● disciplinary and grievance
usually the date they started rules and procedures — all Changes to
with you. But if, for example, employers are required to
you bought your business have minimum three-step
employment contracts
from their previous employer, procedures in place (see Next
continuous employment runs Steps below). You must get the employee’s
from when they started with consent if you want to change
that employer; Some other terms of the their employment contract
● how much the employee is paid, contract are implied and do
and at what intervals (weekly or not need to be written into If you want to make changes to
monthly, for example); the contract. For example, you an existing employment contract,
● the employee’s working hours must provide a secure, safe and you must discuss and agree
and holiday entitlement; healthy working environment, them with the employee or their
● the job title or a brief job while your employee must serve representative.
description; you honestly and faithfully. You must inform the employee
● the place of work. If the Your business’s custom and in writing within a month of any
employee is required or practice — the way staff are resulting change made to the
allowed to work in more than normally treated — may form details of the written statement.
one place, the statement part of the contract. For example,
should indicate this and give if your redundancy payments Next steps
the employer’s address; are usually above those set by
● the length of notice you and law, all employees may come to ● Read: Contracts Of
the employee must give to expect the same treatment. Employment: Changes, Breach
end the employment; Some terms — such as the right Of Contract And Deductions
● how long the job is expected to receive a minimum wage — are From Wages (ER21). Contact
to last if it is not permanent; automatically imposed by law. www.delni.gov.uk/er21
the date it will end if it is for a Advice On Agreeing And
fixed term; Next steps Changing Contracts Of
● details of any collective Employment.
agreements made between ● See Length of the working Contact 028 9032 1442;
you and the employee’s week, page 65 www.lra.org.uk
Understanding
employees’ rights
the minimum wage — but
62
Insuring your Workers and not overtime or shift-work
employees employees premiums
All employees are workers, but You must pay anyone who works
You must insure against any not all workers are employees. for you at least the national
claims arising from illnesses, Many rules, regulations and minimum wage. This typically
diseases or injuries your staff rights apply only to employees, includes freelance and casual
may pick up as a result of but some apply to all workers. workers as well as employees
working for you An ‘employee’ is someone who have a contract of
who works for you under employment.
Employers’ liability insurance, the terms of a contract of The rates current from
which protects your business employment, whether it is October 1, 2009 are:
against claims from employees written down, agreed orally or ● £5.80 an hour for those
for accidents or sickness they implied by the nature of the aged 22 or over;
may suffer as a result of working relationship. ● £4.83 an hour for people
for you, is a legal requirement. A ‘worker’ is any individual aged 18 to 21;
The statutory minimum cover is person who works for you, ● £3.57 an hour for workers aged
£5 million and you should display whether under a contract 16 and 17, who are above the
the certificate in any place of employment with you or age of compulsory schooling.
of work. You must keep your not, who provides a personal
certificates even after they have service — e.g. a short-term Minimum wages for agricultural
expired — employees could make casual worker, agency worker workers are set separately by the
a claim many years after they or some freelance workers. Agricultural Wages Board (AWB)
have worked for you. In terms of the rules and under a grading system (see
regulations in this section, Next steps below). The hourly
Next steps genuinely self-employed rates for different age groups
people or businesses to whom are at least equal to the national
● Visit www.nibusinessinfo.co.uk/ you subcontract are not minimum wage, but higher rates
insurance usually defined as ‘workers’. apply for workers with more
● Contact the Health and Safety Where ‘workers’ are referred experience and qualifications.
Executive for Northern Ireland: to in this guide, everyone There is also a lower rate for
0800 0320 121; working for you who is not workers below compulsory
www.hseni.gov.uk self-employed or employed by school leaving age.
someone else is entitled to the When calculating whether
employment rights in question. you are paying the minimum
wage, you can take into account
The national minimum Next steps any bonuses and incentive or
performance-related payments.
wage ● Check whether freelances, As of October 2009 tips can
agency workers or any other no longer count towards the
Nearly everyone who works individuals are classified as minimum wage.
for you is entitled by law to workers or not Extra money above basic pay
receive a minimum level of — such as overtime or shift-work
pay — the national minimum premiums — does not count.
wage. Bonuses and incentive No benefits other than
payments count towards money can be included, apart
}
from a small amount for free
63
accommodation. Staff who are
Workers’ average pay must be
at or above the minimum wage
off sick
Our values demand that
for the period for which they are
being paid.
we remain customer- Staff who cannot work for four
For workers on a wage or focused, innovative and days or more because of illness
salary, the number of hours have integrity, but they’re are entitled to a minimum
worked will generally be clear. also about ensuring all of level of sick pay. You can claim
Output workers — including us are motivated and enjoy some of the money back from
homeworkers — paid to do set HM Revenue & Customs if your
tasks must either be paid at least
our work business’s sick pay exceeds a
~
120 per cent of the minimum set level
wage for the average hours
needed to complete a block of You must pay statutory sick pay
work, or paid the minimum wage (SSP) to employees who cannot
for every hour they work. work for four or more calendar
You must keep records days in a row because of physical
to prove you are complying. or mental illness or disablement.
Workers can ask to see them The rate in the tax year 2009-10
if they think they are being is £79.15 a week.
underpaid. John Cowley All full- and part-time
If your staff have earnings Singularity employees and agency workers
well above the minimum wage, who are employees for National
you probably will not need to Insurance purposes qualify for
keep any specific records beyond statutory sick pay provided they
those you already keep for PAYE. earn more than the National
Apprentices aged under 19 Insurance lower-earnings limit,
are exempt from the national which is £95 a week (2009-10
minimum wage. Apprentices tax year).
aged over 19 are exempt for You can withhold statutory
the first 12 months of their sick pay if the employee has
apprenticeship. recently received employment
and support allowance or severe
Next steps disablement allowance or is in
custody.
● Visit www.nibusinessinfo.co.uk/ If your own arrangements
minimumwage are more generous than the
● The National Minimum Wage statutory sick pay scheme you
Helpline can provide further can opt out. But you must keep
information: detailed records.
contact 0845 6000 678 Statutory sick pay is subject
● For more information about to income tax and employees’
the AWB grading system for National Insurance contributions.
agricultural minimum wage It is payable for up to 28 weeks
contact 028 9052 4999; for any one period of sickness
www.dardni.gov.uk or series of linked periods of
sickness.
}
64 You may be able to recover Arranging employees’
some SSP by deducting this
money from the National
pensions
Insurance contributions you pay Although our business
to HM Revenue & Customs (and If you have five employees
has grown massively, it
from income tax if necessary). or more, you may need to
You can find details of what offer employees access to a remains a personable
you can claim back on the HM stakeholder pension scheme. organisation that dislikes
Revenue & Customs website (see Your business is not required hierarchy and values its
Next Steps below). Any sick pay to make contributions to an people
you recover has to be recorded employee’s scheme — but you
~
on your P14 and P35 forms at must deduct an employee’s
the end of the tax year. contributions from their pay if
You must keep full records they ask you to
of sick pay for three years. A
form for this purpose (SSP2) can You are exempt from having
be obtained from HM Revenue & to offer a stakeholder pension
Customs. scheme, even if you employ five
You should also record or more people, if:
sick pay paid to an employee ● they all earn less than the
in the relevant column on National Insurance lower John Cowley
your employee’s P11 form or earnings limit, which is £95 a Singularity
equivalent payroll record. week (2009-10 tax year);
● you offer access to an
Next steps occupational pension scheme
which all employees can join
● See Working out tax and NI for within a year of starting work;
employees, page 17 ● you offer to pay a contribution
● See Employees’ pay records at of at least three per cent of
end of tax year, page 20 employees’ basic pay to a
● Visit www.nibusinessinfo.co.uk/ personal pension scheme and
employingpeople to deduct their contributions if
● For more information contact requested. The scheme should
HM Revenue & Customs: not penalise members who
0845 60 70 143; stop contributing.
www.hmrc.gov.uk/paye
● Read: Employee’s Statement Unless exempt, you must choose
Of Sickness (SC2). a stakeholder scheme registered
Contact 0845 60 70 143; with the Pensions Regulator.
www.hmrc.gov.uk/paye You should consult employees
about your choice and then write
to the scheme provider to say
you have formally chosen their
scheme. Keep a copy of the letter.
Give employees details of your
chosen provider and a contact
name. You can give information For calculation purposes, hours Next steps
about the scheme to employees, are averaged over a 17-week 65
but you must not advise them period, though this can be ● Visit www.nibusinessinfo.co.uk/
about its financial benefits. extended by agreement. This employingpeople
Employees are not obliged to reference period must not ● For more information, visit
sign up to the scheme. Tell staff include time spent on holiday or www.delni.gov.uk/er
you can take their contributions sick leave. For instance, if two
from pay through PAYE but that days are lost due to sickness the
they can pay directly into the minimum reference period is 17
scheme if they prefer. weeks and two working days. Giving staff rest
You must deduct employees' Workers can voluntarily
contributions from pay if asked agree to waive the 48-hour limit
breaks
to do so and forward them to the — but you must not force or put
scheme provider. Keep records of pressure on them. You must ask Workers have a right to
the payments. those who do opt out to sign a minimum rest breaks during
Employers do not have to written agreement. and between shifts, and a
contribute. If you do, tell staff Drivers and employees set number of days off each
how much you intend to give. travelling with them are also week. There are special rules
restricted to an average of 48 protecting young workers
Next steps hours a week. They cannot opt
out of this. Most people who work for you
● Visit www.nibusinessinfo.co.uk/ Work-related training counts — employees, freelances, casual
employingpeople as part of the working week, as or agency workers — are entitled
● The Pensions Regulator offers does travel as part of a worker’s to minimum rest breaks. Workers
a decision tree for employers duties and working lunches. But must have a minimum 20-minute
and a register of stakeholder lunch breaks and journeys to and rest break in each shift lasting
pension providers. Contact from work do not. more than six hours. Young
0870 606 3636; The limits do not apply to members of staff (under 18) are
www.thepensionsregulator.gov.uk those with the freedom to entitled to at least 30 minutes’
● Read: Stakeholder Pensions — choose their own hours of work break for every four and a half
A Guide For Employers (PME1). — typically senior managers — hours they work.
Contact 0845 60 60 265; nor to self-employed contractors. Staff have a right to 11 hours’
www.thepensionservice.gov.uk But freelance or agency staff rest between each working day;
paid a regular wage or salary do young workers get 12 hours.
qualify. For young workers — over You must not force staff to
the minimum school-leaving age work more than six days in every
Length of the but under 18 — the maximum is seven, or 12 days in every 14.
40 hours. Young workers should get two
working week You need to keep records to days off a week.
show you are complying with the In certain specified
Rules on working time fix the 48-hour limit — but you can do circumstances, rest breaks, rests
maximum average working this using records you already between shifts and days off can
week for most workers at keep for pay (a payslip quoting be accumulated and used later.
48 hours. Workers can agree hours worked, for example). For example, this may happen
voluntarily to forgo this limit You have to keep an up-to- during busy peak periods,
— but you must not put date record of workers who have when an emergency crops
pressure on them to do so waived the 48-hour limit. up or where someone works a
~
become more agile, but agility the highest level globally within
is at the heart of our own our technology field, means
business, too. we offer exciting employment
To engage everyone we opportunities. That helps us to
organised two events for all attract and retain talented and Singularity Limited
staff: one in Hyderabad, the well-motivated people. Derry (HQ), Co Londonderry
other near Derry. The aim was Many people have been with Tel: 02871 267 767
to listen and work together to us for more than five years — www.singularity.co.uk
long way from home and wants not average more than eight Most people who work for you,
to work longer hours over fewer hours of night work in each 24- including your employees, 67
days to complete a task more hour period. This is normally freelances and agency workers,
quickly. calculated over 17 weeks, though are entitled to a minimum of 5.6
A young worker’s entitlement it can be extended by agreement weeks’ paid annual leave, with
to breaks can only be changed with staff. part-time workers enjoying leave
or removed in exceptional If a night worker’s job involves proportionate to the number of
circumstances. They must not special hazards or physical days they work each week.
work more than eight hours a or mental strain, there is no This means that a full-time
day and 40 hours a week. averaging — they must not work worker who works five days
If you have a worker covered more than eight hours in any one a week is entitled to 28 days’
by the Disability Discrimination 24-hour period. annual leave, while a part-timer
Act who requires extra In general, young workers who works two days a week is
breaks, for example to take (under 18) are not permitted to entitled to 11.2 days.
medication privately, you may be work at night — though there You are of course free to
discriminating by refusing. are exceptions for a number of specify a longer period in
business sectors. your employees’ contracts of
Next steps You must offer workers a free employment if you wish.
health assessment before they The minimum leave period can
● See Workers with disabilities, start working at night and repeat include bank holidays. There is
page 71 it regularly (typically once a year) no automatic right to take bank
● Visit www.nibusinessinfo.co.uk/ after that. This will generally be holidays off.
employingpeople in the form of a questionnaire, The leave entitlement starts
with a medical examination building up from a worker’s first
following if you have any doubts day at work. With your staff’s
about the employee’s fitness agreement, during their first year
People working at for night work. You must keep of work you can use a system
records of these assessments for in which they get one twelfth of
night two years. their annual leave entitlement for
each month they work, rounded
There are special regulations Next steps to the nearest half-day.
governing night workers’ Holiday pay must be based
hours and they must also ● Visit www.nibusinessinfo.co.uk/ on the worker’s average pay. If,
be offered a free health employingpeople for example, their normal pay
assessment to check they are includes additional money for
fit to work at night working unsocial hours, so must
the holiday pay.
Unless you agree otherwise with Paid annual leave You should agree with staff
your staff, night time is defined how much notice of leave they
as the period from 11pm to 6am. should give. If you do not have
Nearly everyone who works People who work for you must an agreement, the notice period
for you, including employees, get a minimum of 5.6 weeks’ should be twice the length of the
freelances and agency workers, paid annual leave a year — leave requested.
is covered by these rules. equivalent to 28 days' leave If someone stops working for
Night workers — people who for a full-time worker. This you they are entitled to be paid
regularly work at least three entitlement can include bank for any leave they haven't taken.
hours during night time — should holidays
}
have to ensure that other discrimination or harassment
managers or members of staff practised by your employees, 69
do not discriminate against their so you must deal with any
colleagues. Many people have been problems.
In addition, the way you Discriminatory harassment
recruit staff must not be
with us for more than five might include demeaning
discriminatory. years — some for remarks, graffiti, jokes, verbal
You must not offer less more than a decade abuse or physical assault.
~
favourable contractual terms You must not treat anyone
— including those covering pay less favourably for making a
and benefits — to any employee complaint of discrimination
or group of employees on these against you — known as
grounds. Nor must you deny victimisation.
them access to promotion, There are a few limited
transfers, training or any other exceptions to the discrimination
schemes, facilities or services. rules — for example, some
You must not dismiss an restaurants where food is served
employee on these grounds. in a particularly authentic setting
Under equal-pay laws, you may be allowed to recruit from
must offer the same level of particular racial groups. In areas
pay to men and women doing such as care work, it may be
the same or similar work, work John Cowley necessary to appoint someone
rated as equivalent, or work of Singularity of a particular sex for reasons of
equal value, as someone of the privacy and decency.
opposite sex. It is best to take advice if
Any attempt at separating you intend to apply one of the
people of a particular race exceptions.
from other staff counts as You may also take positive
discrimination. action to help men or women or
You must also avoid indirect members of a particular racial
discrimination, where you group or sexual orientation
apply a seemingly unbiased compete on equal terms when
requirement or practice looking for work — perhaps by
with which any of the above running a training course or
categories of employee is much offering work experience. You
less likely to be able to comply. can encourage people to apply
Examples of indirect for work — but you must always
discrimination might be creating select the best person for the job
new shift patterns which make when recruiting.
things hard for working mothers Any benefits you offer married
or introducing a uniform employees and their spouses
banning headgear when some — such as health insurance or
people wear headwear for flexible working — must also
reasons relating to their ethnic be offered to employees who
background. are civil partners, and to their
Remember that you may partners.
be held responsible for any It is unlawful to discriminate
~
age for your employees if it is You must not treat less
objectively justified. Employees favourably anyone who makes a
have the right to request to discrimination complaint against
work beyond 65 (or any other you — known as victimisation.
retirement age you set) and you You also have to avoid indirect
have a duty to consider any such discrimination — where you
requests. apply a seemingly unbiased
requirement or condition with
Next steps which persons of one religion
or political group are much less
● See How to recruit and select likely to be able to comply.
employees, page 58 You may take affirmative
● Visit www.nibusinessinfo.co.uk/ John Cowley action — such as providing
discrimination Singularity a training course — to help
● The Equality Commission members of one religious or
advises on anti-discrimination political group compete on
legislation and best practice. equal terms when looking for
Contact 028 9089 0890; work.
www.equalityni.org Businesses with more than
● Read: Harassment & Bullying ten employees must also take a
In The Workplace. Visit number of steps to monitor the
www.lra.org.uk composition of their workforce.
They must:
● register with the Equality
Commission;
Religious and political ● ask employees and applicants
whether they are Protestant,
discrimination Roman Catholic or neither;
● submit this information to the
People working for you are Equality Commission annually;
entitled not to be discriminated ● conduct every three years a
against on grounds of religious formal review of employment
belief or political opinion practices — known as an
Article 55 review;
You must not discriminate ● take steps to remedy under-
against anyone who works representation identified in
for you — or who applies to the formal review.
you for work — on the basis of
How flexible
working
benefits my
business
Paul Creighton is managing
director of AES Distribution
Limited, which manufactures
72 and distributes security
systems such as CCTV,
intercoms and gate
automation equipment. His
brother Mark runs a sister
company — AES Installation
Services Limited — which
installs and services security
systems. Both businesses —
which were previously one
company — make the most of
flexible working practices
~
You must not victimise the majority of the relevant
part-timers who have made a workforce are union members.
complaint of unfair treatment
against you. Next steps
Advanced Electronic Solutions
Cookstown, Co. Tyrone Next steps ● Visit www.nibusinessinfo.co.uk/
Tel 028 8676 7878 tradeunion
www.aes-ni.co.uk ● Visit www.nibusinessinfo.co.uk/ ● The Labour Relations Agency
part-time can provide further help and
~
www.industrialcourt.gov.uk maternity pay (see Pay on
maternity leave, right).
Ordinary maternity leave can
start any time from the 11th week
When an employee before the baby is due.
A woman expecting a baby
is pregnant must notify you by the end
of the 15th week before the
A pregnant employee qualifies expected week of childbirth:
automatically for 52 weeks ● that she is pregnant;
of maternity leave. Many will Paul Creighton ● when the expected week of
also be entitled to receive Advanced Electronic Solutions childbirth is, confirmed with
statutory maternity pay for a medical certificate if you
a period of 39 weeks. You request one;
must not discriminate against ● when she intends her
an employee for reasons maternity leave to start.
connected with her pregnancy
You must write to her within 28
You must not dismiss a pregnant days, stating when you expect
employee — or single her out her to return to work if she
for redundancy — for reasons takes her full maternity leave
connected with her pregnancy, entitlement.
childbirth or maternity leave. Nor A pregnant woman keeps all of
must you treat her unfairly. her normal terms and conditions
Regardless of the size of your except wages or salary while on
business or the hours she works, ordinary maternity leave. Holiday
a pregnant employee is entitled entitlement continues to build up
to a minimum standard of as normal, for example.
treatment. Of course you can be All the normal terms and
more generous if you wish. conditions (except wages or
You must give pregnant salary) apply during additional
women paid time off to attend maternity leave as well as
antenatal care appointments, ordinary maternity leave.
which may include relaxation Previously (for babies due
and parentcraft classes, attended before 5 October 2008) only
on the advice of a registered some terms and conditions of
}
some terms and conditions
77
Paid leave for of employment remained
during additional leave; but
adoptive parents for adoptions after 5 October
Reward employees when
2008, employees are entitled
they've earned it — if they Employees who are newly to all their normal terms
accumulate extra hours matched with a child by an and conditions (except those
worked in a month, give adoption agency can take relating to wages or salary)
them a day off. Flexibility is adoption leave if they have during additional adoption
a two-way thing worked for you for at least 26 leave as well as ordinary
weeks. In most cases, while off adoption leave.
~
work, they are also entitled to
a minimum level of statutory Adoption leave can start
adoption pay from the date of the child’s
placement or from up to 14 days
One member of a couple — or beforehand.
an individual — who adopts a Employees with average
child is entitled to adoption leave weekly earnings above the
and pay. The other member of a lower earnings limit for National
couple may qualify for paternity Insurance contributions (£95 for
leave and pay. the 2009-10 tax year) qualify for
Paul Creighton To qualify for adoption statutory adoption pay (SAP).
Advanced Electronic Solutions leave, an employee must The period of entitlement to
have worked continuously for SAP is 39 weeks. The rate of SAP
you for at least 26 weeks is £123.06 (2009-10) or 90 per
when they are matched with a cent of the employee’s average
child by an approved adoption weekly earnings, whichever is the
agency. lower — though you can pay more
Employees must give you than this if you wish.
evidence from the adoption You must not dismiss
agency as proof of entitlement employees or treat them unfairly
to adoption leave and pay: for because they have taken
example, a letter on headed adoption leave.
paper confirming the matching. Employers can recover
Adoptive parents are entitled statutory adoption pay from
to up to 52 weeks’ adoption the income tax and National
leave. This is made up of: Insurance contributions they pay
● 26 weeks’ ordinary adoption to HM Revenue & Customs.
leave, during which employees If your business’s total annual
are entitled to keep their National Insurance contributions
normal terms and conditions are £45,000 or less, you can
of employment — except those claim back all statutory adoption
relating to wages or salary; pay plus a compensation
● 26 weeks’ additional adoption payment of 4.5 per cent on top.
leave — previously (where the If your National Insurance
child's placement was due contributions are above
before 5 October 2008) only £45,000, you can claim 92 per
~
taken by an adoptive parent (see
Next steps below). Mothers and fathers have a right
to take unpaid parental leave to
Next steps look after young and disabled
children.
● See Paid paternity leave, Parents can take 13 weeks’
page 76 unpaid parental leave for each
● Visit www.nibusinessinfo.co.uk/ child. They can take leave until
adoption the child’s fifth birthday or
● The Labour Relations Agency until five years after they have
advises on adoption leave Paul Creighton adopted a child. They must have
and pay for adoptive parents. Advanced Electronic Solutions completed a year’s continuous
Contact 028 9032 1442; service with you.
www.lra.org.uk Parents of disabled children
● For more information read: can take 18 weeks’ unpaid leave
Adoptive Parents: A Guide For until the child’s 18th birthday.
Employers and Employees Employees remain employed
(ER35). Visit while on parental leave. Some
www.delni.gov.uk/er35 contractual terms and conditions,
Pay And Time Off Work For such as those relating to notice
Adoptive Parents (E16); periods and redundancy, still
Statutory Adoption Pay Record apply.
Sheet (SAP2). Contact You must allow staff returning
0845 7 646 646; from parental leave of four
www.hmrc.gov.uk/paye weeks or less to return to the
● Further information is same job.
available from the HM Revenue With longer periods of leave,
& Customs Employers’ you must let them go back to
Helpline. Contact the same job or, if that is not
08457 143 143 reasonably practical, to a job
● HM Revenue & Customs with similar or better terms and
Employers’ Orderline provides conditions.
all relevant forms. Contact You can agree how and when
0845 7 646 646; leave is to be taken with staff
www.hmrc.gov.uk/paye or their representatives, though
there is a fallback scheme if
Resolving problems
with employees
staff who break your rules. All insubordination.
80
Discipline and businesses have to put minimum A grievance procedure allows
disciplinary procedures in place, individual workers to raise
grievance issues including the following stages: grievances with management
● informing the employee in about their employment. Issues
Information on discipline and writing of the problem; that may cause grievances
grievance must be included in ● meeting to discuss the include:
employees’ written statements problem with the employee ● terms and conditions of
of employment details. All — who has the right to be employment;
businesses are also required to accompanied by a colleague, ● health and safety;
have minimum disciplinary and trade union official or certified ● bullying and harassment;
grievance procedures in place companion; ● new working practices;
● after the meeting, informing ● organisational change;
You should draw up disciplinary the employee of the ● equal opportunities.
rules to set standards of conduct employer’s decision and of
at work and explain what their right to appeal against it; All businesses have to put minimum
behaviour is unacceptable. The ● an appeal, if the employee grievance procedures in place,
rules could cover areas such as: requests one. including the following stages:
● timekeeping or absence; ● The employee informs the
● health and safety; Minor breaches of rules should employer in writing of their
● standards of work; be dealt with informally. grievance.
● personal appearance; Examples of misconduct ● The employee is invited to
● use of company facilities; you might deal with using your a meeting to discuss the
● discrimination. disciplinary procedure could grievance — they have the
include persistent lateness or right to be accompanied by a
You must include details of unauthorised absence. colleague, trade union official
your disciplinary rules and Gross misconduct is an or certified companion to
grievance procedures in your action so serious that you may certain hearings.
written statement of terms and dismiss an employee for their ● The employer responds to the
conditions. You must explain: first offence without notice or grievance.
● what your disciplinary rules are; pay in lieu of notice. In practice, ● A right of appeal for the
● to whom the employee should however, you should generally employee if they feel the
apply if they are dissatisfied suspend the employee on full grievance has not been
with a disciplinary decision or pay and investigate the incident satisfactorily dealt with.
want to air a grievance; before dismissal. The employee
● how to apply and what further should be given a chance to put The Labour Relations Agency
procedures, if any, will follow. forward their case at a meeting. (LRA) Code of Practice on
Examples of offences which Disciplinary and Grievance
For the first and last of these are normally regarded as gross Procedures provides practical
you can also refer employees misconduct include: theft; fraud; guidance on drawing up
to a separate document that fighting; assault; deliberate disciplinary and grievance
they should be able to easily damage to company property; procedures.
get hold of if these details are being under the influence of
not fully contained in the written alcohol or illegal drugs; serious Next steps
statement. negligence which causes
Disciplinary procedures set out unacceptable loss, damage ● Visit www.nibusinessinfo.co.uk/
the action you will take against or injury; serious acts of grievance
}
● The Labour Relations Agency misconduct;
helpline can offer advice. ● ensure employees are given 81
Contact 028 9032 1442 an explanation for any
A business can’t function penalty;
● give employees the right to
successfully if its people appeal against any decision and
don’t turn up when they
The LRA Code explain how they can do so.
need to — it makes a
of Practice on The Code of Practice also states
manager’s job much
Disciplinary and more difficult that good grievance procedures
Grievance Procedures should make it easy for
~
employees to raise issues with
management. They should:
You can use the Labour ● be clear and in writing;
Relations Agency’s code of ● allow matters to be dealt with
practice to help you set up informally if possible;
your rules and procedures. This ● maintain confidentiality;
makes sure problems are dealt ● allow employees to have a
with fairly and that employees companion at meetings.
get the chance to put forward
their side of the story Next steps
Jonathan Hanna
The Labour Relations Agency McCauley Trailers Ltd ● Visit www.nibusinessinfo.co.uk/
(LRA) Code of Practice on grievance
Disciplinary and Grievance ● Read: Labour Relations
Procedures states that good Agency Code Of Practice On
disciplinary procedures should: Disciplinary And Grievance
● be in writing; Procedures. Contact 028 9032
● be non-discriminatory; 1442; www.lra.org.uk
● ensure information is kept
confidential;
● set out what disciplinary
actions might be taken; Monitoring email
● state which levels of
management have the
and web use
authority to take disciplinary
action; You must inform employees
● ensure employees are if you intend to monitor their
informed of complaints web and email use — preferably
against them and any relevant making it part of their
evidence before a hearing; employment contracts. You
● give employees the chance can only inspect the content of
to put forward their side of individual emails in a number
the story before a decision is of restricted circumstances
reached;
● not involve dismissal for a There are legal restrictions on
first offence, except for gross how you can monitor employees’
use of the web and email. But whether you have the right to For a dismissal to be fair, you
82 this is a complex area which read an email, you must get must have a valid reason for
is covered by a range of laws permission to do so — from both dismissing the employee.
including: the Regulation of the sender and recipient. Valid reasons relate to:
Investigatory Powers Act, the ● the employee’s ability or
Data Protection Act and the Next steps qualifications to do the job;
Human Rights Act. If in doubt ● the employee’s conduct;
you should seek legal advice. ● Visit www.nibusinessinfo.co.uk/ ● the employee’s position being
You must inform employees emailpolicy made redundant;
if you intend to carry out any ● The law in this area can be ● any legal requirements
monitoring of their email and complex and you should act preventing the employee from
web use — whether this is of carefully or consult a solicitor continuing to do the job (for
Internet and email traffic or the ● For more information, example, if a van driver is
contents of emails. Include this read: Quick Guide To The banned from driving);
in their employment contracts Employment Practices Code ● the employee’s retirement,
or refer to a separate Internet — Ideal For The Small Business. as long as the employer
policy which mentions it. Contact 01625 545 745; has complied with a duty
Remember that monitoring is www.ico.gov.uk to consider any employee
intrusive, so consider carefully request to keep working;
whether the benefits are ● some other ‘substantial’
sufficient to justify its use. reason not covered by the
In general you can monitor Valid reasons for reasons above.
email and Internet traffic,
installing software which logs
dismissal You must also act reasonably
websites visited and emails in dismissing the employee (for
sent and received together If you are dismissing an example, by giving them a chance
with addresses (but not their employee, you must make to improve or taking some other
contents). sure you are acting fairly and form of disciplinary action).
You can inspect the content reasonably. There are a number There are no set rules on what
of individual emails without a of potentially valid reasons for is reasonable — it will depend on
worker’s consent for a number dismissal — from redundancy to all the circumstances, including
of specific business purposes. the employee being unable to your business’s size and
These include: do the job administrative resources.
● recording transactions or You may be required to prove
other important business Employees with at least a year’s to an industrial tribunal you
communications; service have the right not to be have acted reasonably if an
● making sure employees are unfairly dismissed. employee makes a claim. You
complying with the law and They can complain to an should be able to show you have
your internal policies; industrial tribunal if they acted fairly and consistently.
● preventing abuse of your think they have been unfairly A dismissal is automatically
telecoms system; dismissed. If the reason for unfair if you fail to follow
● checking emails when staff dismissal is one of a number statutory minimum disciplinary
are on leave. which the law regards as procedures before taking action
‘automatically unfair’, an — and tribunal awards may be
If you want to monitor employee can make a tribunal increased.
communications for other claim regardless of their length Remember that a dismissal
purposes, or are not sure of service. also takes place when an
}
employee’s fixed-term contract it include one or more of the list
expires but is not renewed. below: 83
● maternity-related grounds;
If you have a problem with Next steps ● requesting flexible working;
● taking particular kinds of
serious misconduct, you ● See The LRA Code of Practice action on health and safety
must deal with it quickly, I on Disciplinary and Grievance grounds, such as carrying
can’t stress that enough Procedures, page 81 out or proposing to carry out
~
● See Dismissals which are duties as a health and safety
automatically unfair, below representative;
● See Handling redundancy, ● carrying out or proposing
page 87 to carry out functions as an
● Visit www.nibusinessinfo.co.uk/ employee representative;
dismissal ● membership or non-
● The Labour Relations Agency membership of a trade union,
helpline can offer advice. or taking part in the activities
Contact 028 9032 1442 of an independent trade union;
● For more information on ● carrying out or proposing to
dismissal, read: Dismissal: Fair carry out duties as a trustee
And Unfair — A Guide For of a company pension scheme;
Employers (ER18); Rights ● seeking to assert a wide range
Jonathan Hanna To Notice And Reasons For of statutory employment
McCauley Trailers Ltd Dismissal (ER15). Visit rights, including rights under
www.delni.gov.uk/erbooklets minimum wage, tax credits or
working time legislation;
● disclosing certain kinds of
wrongdoing in the workplace;
Dismissals which are ● taking — or trying to take
— parental or adoptive leave,
automatically unfair or time off for dependants;
● relating to the transfer of an
Some dismissals are regarded as undertaking, unless it can be
automatically unfair. You must established that the dismissal
follow minimum disciplinary was for an economic, technical
procedures and must not or organisational reason;
dismiss an employee for reasons ● for refusing to work on
that include pregnancy and Sunday (subject to certain
seeking to assert statutory conditions);
employment rights ● taking lawfully organised
industrial action lasting twelve
If you dismiss an employee or weeks or less (longer if you do
select them for redundancy not take reasonable steps to
when others in similar resolve the dispute);
circumstances are not selected ● retirement — if you haven’t
it will automatically be unfair, complied with the duty to
regardless of their length of consider employee requests
service, if your reasons for doing not to retire.
}
This list is not exhaustive — the civil partnership and gender
84 publication Dismissal: Fair And reassignment);
Unfair — A Guide For Employers ● race, nationality or ethnic
provides more detailed examples Unacceptable behaviour origins;
(see Next steps below). ● disability;
A dismissal is also
such as bullying saps ● age (unless objectively
automatically unfair if you fail morale. If some employees justifiable);
to follow statutory minimum misbehave, are always late ● sexual orientation;
disciplinary procedures before or continually take ● religion;
taking action — and tribunal ‘sickies’, it affects others ● political opinion.
awards may be increased.
~
A worker — who can be an
Next steps employee or any individual
who works for you who is
● See Race, sex and age not genuinely self-employed
discrimination, page 68 — who believes they have been
● See Religious and political dismissed for such a reason
discrimination, page 70 could make a discrimination
● See Workers with disabilities, claim against you.
page 71
● See When an employee is Next steps
pregnant, page 74 Jonathan Hanna
● See Unpaid leave for parents, McCauley Trailers Ltd ● See Race, sex and age
page 78 discrimination, page 68
● See Time off work other than ● See Religious and political
annual leave, page 68 discrimination, page 70
● Visit www.nibusinessinfo.co.uk/ ● See Workers with disabilities,
dismissal page 71
● For more information, read: ● See When an employee is
Dismissal: Fair And Unfair — A pregnant, page 74
Guide For Employers (ER18). ● See Unpaid leave for parents,
Visit www.delni.gov.uk/er18 page 78
● See Time off work other than
annual leave, page 68
● For more information, contact
Dismissals which the Labour Relations Agency
helpline: 028 9032 1442.
are automatically ● Advice on preventing
unlawful workplace discrimination is
available from the Equality
Some reasons for dismissal are Commission.
automatically against the law Contact 028 9089 0890;
www.equalityni.org
It is unlawful to dismiss a worker
or select them for redundancy
because of their:
● sex (including being married,
available, unless their contract for at least one year asks for
85
Giving notice of of employment states that you the reasons for their dismissal
have the right to do so. — orally or in writing — you must
dismissal Employees may agree to be provide a written statement of
laid off without pay in particular the reasons within 14 days.
If you dismiss an employee, circumstances, such as If you dismiss a woman who is
they are entitled to a minimum where redundancy would be the pregnant or on maternity leave
amount of notice — unless it is only alternative, but this does or an employee who is taking
for gross misconduct not give you the right to lay them adoption leave, you must give
off in future. them a written statement of
The minimum amount of notice Most employees are entitled your reasons whether they ask
you must give an employee to a statutory guarantee for one or not and regardless of
you are dismissing depends payment for any complete day of their length of service.
on how long they have been lay-off without pay — but with a
continuously employed. You can limit of five days’ payment in any Next steps
include longer periods of notice three-month period.
in your employment contracts if ● For more information, read:
you wish. Next steps Rights To Notice And Reasons
You must give one week’s For Dismissal (ER15). Visit
notice to staff with at least one ● See Discipline and grievance www.delni.gov.uk/er15
month’s service. Employees with issues, page 80
two years’ service must get at ● Visit www.nibusinessinfo.co.uk/
least two weeks’ notice. dismissal
You must then give an extra ● For more information, read: Constructive
week’s notice for each further Rights To Notice And Reasons
year of continuous employment For Dismissal (ER15);
dismissal
with you up to a maximum of 12 Guarantee Payments (ER14).
weeks’ notice for service of 12 Visit An employee may be entitled
years or more. www.delni.gov.uk/erbooklets to resign and make an unfair
You are not obliged to give Temporary Lay-Off And Short- dismissal claim to an industrial
notice if you are dismissing an Time Working (Information tribunal if you breach a
employee for gross misconduct. Note No. 5). Contact fundamental term of their
You must pay employees at 028 9032 1442; www.lra.org.uk employment contract — by
their normal rate during their cutting their salary or failing
notice period. They have the to provide a safe place of work,
right to a minimum rate of pay if for example
they are on sick leave, holiday or Written reasons for
ordinary maternity leave during If you breach a fundamental term
the period of notice.
dismissal of an employee’s contract, they
If you do not provide work for may be entitled to resign. This is
an employee on a day when you There are cases in which you known as constructive dismissal.
would normally do so because may be obliged to provide If the employee considers the
the business is not working at written reasons for dismissing constructive dismissal unfair and
its normal level, the employee is an employee has at least one year’s service
‘laid off’. with you, they can make an
But you cannot refuse to If an employee who has been unfair dismissal complaint to an
pay them because work isn’t continuously employed with you industrial tribunal. The employee
time keeping, for example, helped ensure everything was send out a company-wide
increase costs and harm legal. The result was a staff email — communication is very
productivity and efficiency. handbook, which provides new important. Making employees
Unacceptable behaviour and existing employees with feel part of the business also
such as bullying saps morale. clear guidance on conduct and helps to maintain good staff
If some employees misbehave, what to do in certain scenarios conduct.
are always late or continually (if they are ill, for example). It If you have a problem
take “sickies”, it affects also details procedures following with serious misconduct you
others. Employees acting serious misconduct. must deal with it quickly, I
unprofessionally can damage For lesser misdemeanours, a can’t stress that enough.
your reputation, especially if quiet word in the staff member’s For other minor problems it
customers witness it. ear is usually enough. We also doesn’t pay to get too heavy-
As a manager you must have regular staff appraisals handed, although you must
act quickly and decisively when issues can be raised. If a be firm. Common sense and
whenever staff misconduct problem were to persist we'd understanding are important,
comes to your attention. We make it a formal disciplinary but you must be authoritative
have a good team here, young matter and we have procedures when necessary, even if that
and well motivated, so it’s in place. This way we can be means making it a formal
not a big issue but still needs confident that the action we take disciplinary matter.
~
managing. Don't take good is fair and legal.
conduct for granted. Every now and again, it’s a
Employees need to know good idea to remind staff of key
exactly what’s expected conduct requirements, just to
of them. A few years ago ensure standards are maintained. McCauley Trailers Ltd
we didn’t have formal staff We have regular staff meetings Toomebridge, County Antrim
conduct rules; it was an at which conduct issues can Tel: 028 7965 9191
unspoken thing. That wasn’t be raised and we might also www.mccauleys.co.uk
}
must first raise the matter with one of the most intimidating
you in writing, unless the case aspects of running a business, 87
involves harassment or bullying. but following established
Breaches of contract that Every now and again it’s guidelines will ensure you
may give rise to constructive follow the correct path
dismissal claims might include
a good idea to remind
anything which makes it impossible staff of key conduct Redundancy is when you dismiss
or intolerable for the employee to requirements, just to an employee because:
continue doing the job. ensure standards are ● you close your business;
Examples include: maintained ● you close the employee’s
● cutting — or attempting to workplace;
~
cut — an employee’s wages or ● there is a diminishing need for
salary or other contractual the employee to do work of a
benefits; particular type.
● transferring an employee to
a different job or location in Normally the job must have
the absence of any stated or disappeared before you consider
implied contractual right to redundancy, for example,
do so; through a decline in business or
● failing to provide a safe place the introduction of automated
of work; equipment. You must take
● subjecting a supervisor or Jonathan Hanna reasonable steps to avoid
manager to unwarranted McCauley Trailers Ltd compulsory redundancies by
criticism or abuse in the considering alternatives such
presence of colleagues or as making working time shorter,
subordinates. early retirement or shedding
contract labour.
Next steps Selection should always
be objective. If you base it on
● Visit www.nibusinessinfo.co.uk/ performance, you will need to
constructivedismissal back it up with evidence
● For more information contact — perhaps from an existing
the Labour Relations Agency appraisal system.
helpline: 028 9032 1442 People whose jobs are made
redundant have the right to
be offered suitable alternative
employment wherever possible.
Handling redundancy Most employees who are made
redundant have the right not to
be unfairly dismissed. Employees
If there is a change in the way with less than one year’s service
your business operates or if do not have the right to complain
you experience a reduction in to an industrial tribunal, unless
business, there may no longer the reason for dismissal is
be a job for an employee to automatically unfair (see Valid
do, so their position becomes reasons for dismissal, page
redundant. Redundancy can be 82, and Dismissals which are
}
automatically unfair, page 83). redundant, it is advisable as best
88 Employees who are made practice.
redundant have the right to
reasonable time off on full Common sense and Next steps
pay (up to 40 per cent of a
week’s pay) for job-hunting or
understanding are ● See Valid reasons for
to arrange training. There are important, but you must dismissal, page 82
minimum levels of redundancy be authoritative when ● See Dismissals which are
pay that employees may be necessary, even if that automatically unfair, page 83
entitled to (see Qualifying for means making it a formal ● Visit www.nibusinessinfo.co.uk/
redundancy pay, right). redundancy
If you are making 20 or more
disciplinary matter ● For more information, read:
~
employees redundant within a Redundancy Consultation And
period of 90 days or less, you Notification (ER4); Statutory
must consult with employees’ Rights (ER3). Visit
representatives (or a trade union www.delni.gov.uk/erbooklets
that the employees belong to ● Form HR1 is available from the
which is recognised to negotiate Statistics Research Branch of
on their behalf). You must the Department of Enterprise,
also notify the Department of Trade and Investment. Contact:
Enterprise, Trade and Investment 028 9052 9311;
by letter or using form HR1. Jonathan Hanna www.detini.gov.uk/stats_
When the consultation begins, McCauley Trailers Ltd redundancies_1.pdf
you must give employees, their ● The Labour Relations Agency
representatives or the union helpline can offer advice.
written details of: Contact 028 9032 1442
● the reason for the
redundancies;
● numbers and types of the
employees involved; Qualifying for
● the total number of employees
of each of these types you
redundancy pay
employ at the establishment;
● how you plan to select the You are required to pay
employees to make redundant; certain minimum amounts
● how you will carry out the to employees who qualify for
redundancies; redundancy pay when they lose
● how you will calculate their jobs
redundancy payments.
Employees are entitled to
Consultation with employees statutory redundancy pay if they
or unions does not have to are made redundant and have
end in agreement, but it must at least two years’ continuous
be properly carried out. While service.
consultation is not a statutory Payments are based on the
requirement if fewer than 20 employee’s continuous service
employees are to be made and their weekly pay — though
you can pay more if you wish: must inform employees who will
89
● service is counted up to a Sale or transfer be affected and consult their
maximum of 20 years; representatives. These can be
● each year of continuous
of a business officials of a recognised trade
service up to the age of 21 union or representatives elected
entitles the employee to half a Employees’ rights are protected by the employees.
week’s pay; when a business is sold off or is Neither the old nor new
● each year of continuous given to another member of the employer can fairly dismiss
service between the ages owner’s family. They cannot be an employee because of
of 22 and 40 entitles the fairly dismissed unless you can the transfer unless there is
employee to one prove you have good economic, an economic, technical or
week’s pay; technical or organisational organisational reason. You will
● each year of continuous reasons need to show that you acted
service from the age of 41 reasonably in using one of these
onwards entitles the employee Regulations protect employees’ justifications.
to 1.5 weeks’ pay. terms and conditions of Employees’ terms and
employment when the business conditions transfer with them
A week’s pay is based on actual they work for is transferred to to the new employer. There are
income or average weekly a new owner. This can be when limitations to the variations
earnings. all or part of a business is sold to terms and conditions on
Statutory redundancy pay is as a going concern or given to which employees and the new
exempt from tax and National another member of the owner’s employer are allowed to agree.
Insurance contributions, but is family to run. The only contractual rights
capped at £380 per week since Employees’ terms and that are not transferred relate to
October 2009. conditions cannot lawfully be occupational pensions. However,
Any additional severance pay changed if the transfer is the where pension rights have been
can usually be paid tax-free up reason for such changes. established you have to match
to a total of £30,000, including An employee’s period of employee contributions of up to
statutory redundancy pay. This continuous employment is not six per cent of their salary, or
may depend on the terms of the broken by the transfer. offer an equivalent alternative.
employment contract. As the new owner of a You also take over any
transferred business, you cannot collective agreements made on
Next steps choose which employees to behalf of employees.
take on. You take over the
● Visit www.nibusinessinfo.co.uk/ contracts of all employees who Next steps
redundancy were employed in the business
● For more information, read: immediately before the transfer. ● Visit www.nibusinessinfo.co.uk/
Redundancy Entitlement You also take over the contracts sell
— Statutory Rights (ER3). of those who would have been ● Further information is
Visit www.delni.gov.uk/er3 employed if they had not been available from the Department
● The Labour Relations Agency unfairly dismissed for a reason for Employment and Learning.
helpline can offer advice. connected with the transfer (an Visit www.delni.gov.uk/tupe
Contact 028 9032 1442 employee must have had one ● Read: Transfer Of
year’s continuous service to Undertakings (Information
bring an unfair dismissal claim). Note No. 6). Contact
If you are transferring your 028 9032 1442; www.lra.org.uk
business to someone else, you
}
● DARD. Contact: 028 9052 4999; advisory and financial support to
www.dardni.gov.uk help you develop a world-class 91
● Ulster Community Investment competitive business.
Trust. Contact: 028 9031 5003; I often don't have time to
www.ucitltd.com Invest NI is the Government’s
find out about business economic development agency
issues myself, so I use for Northern Ireland.
Invest Northern Ireland. It provides Northern Ireland
If you are an exporter They are always quick businesses with a wide range
to respond to any of practical advice and support
or an innovator to encourage them to become
questions I have more entrepreneurial, more
~
Invest NI oversees much of the innovative, and to operate more
start-up support outlined in internationally. And it offers
the previous section. But our specialist support services to help
hands-on involvement begins businesses compete in markets
when a business is ready to outside Northern Ireland.
export or innovate its way Invest NI can provide help in a
to significant growth. If this range of areas, including:
applies to you then get in ● market research;
touch — our specially trained ● product testing and
advisers understand the issues Brian McMahon development;
facing businesses like yours McMahon Engineering ● finding the right premises;
● intellectual property;
Export Start support: if your ● information technology;
business sells its goods or ● training;
services outside of Northern ● mentoring and networking;
Ireland, a range of support is ● trade support in export
available through the Export markets.
Start programme. This support
is available to start-ups and to Next steps
existing businesses provided
they have been trading for less ● For expert help and guidance
than two years. with developing an existing
business, contact Invest NI:
Global Start support: if your 028 9023 9090; www.investni.
business is built around an com; www.growthni.com;
innovative idea and you can www.nibusinessinfo.co.uk
demonstrate potential sales of £1 ● Contact the Export Start
million (including 30 per cent in programme:
export markets) then specialised exportstart@investni.com
support is available to you ● Contact the Global Start
through Invest NI’s Global Start programme:
team. globalstart@investni.com
The experts who make up ● See Raising finance for your
the Global Start team will business, page 92
work alongside you, providing
}
Next steps
92
Raising finance for
● Visit www.nibusinessinfo.co.uk/
your business startupfinance
I got a lot from the Start
● For more information about
A wide range of schemes
a Business programme the Enterprise NI Small
provide help and finance in the that Invest NI run — some Business Loan Fund, contact
form of loans and grants for useful practical advice Enterprise NI: 028 7776 3555;
start-up and small businesses and, perhaps more than www.enterpriseni.com
anything, access to some ● Contact Prince’s Trust NI:
There is a range of bodies that 028 9074 5454;
might be able to provide you
great contacts www.princes-trust.org.uk
~
with loans, grants and other ● Contact the Irish League of
types of business finance. The Credit Unions:
following list is not exhaustive. 00 353 1 614 6700;
A number of schemes exist www.creditunion.ie
to provide financial assistance ● Contact the Ulster Federation
to agricultural businesses, of Credit Unions:
particularly those diversifying with 028 9030 1204;
new business ventures. Grants www.ufcu.co.uk
and other financial-assistance ● For more information
schemes are operated by the Adam Ewart about the Enterprise Finance
Department of Agriculture and Karacha Music Limited Guarantee, visit:
Rural Development (DARD) and www.businesslink.gov.uk/sflg
Rural Connect.
Credit unions are a potential
source of low-cost finance.
Enterprise Northern Ireland Equity finance for
operates a loan fund for new
start-ups and existing local
your business
businesses. This is available
through the local enterprise Equity finance involves raising
agency network. money from potential investors
In certain circumstances in return for a stakeholding in
the Government will act as a your business. There is a range
guarantor of loans to small of organisations which can help
businesses with viable business you access such finance
proposals. The Enterprise
Finance Guarantee (EFG) covers You may be able to attract equity
75 per cent of the loan amount, finance from venture capital
for which the borrower pays firms or from business angels,
an interest premium of 2 per wealthy individuals who invest in
cent. The scheme is available to new and growing businesses in
businesses with a turnover of up return for a share of the equity.
to £25 million. It applies to loans Investors expect high returns
of between £1,000 and £1 million. to balance the risk they take on.
In Northern Ireland the
Next steps
Rural Connect — part of the www.dardni.gov.uk/rural-
● Visit www.nibusinessinfo.co.uk/ Department of Agriculture and development
skills Rural Development (DARD) — ● Contact CAFRE:
● Contact Invest NI: can help agricultural businesses 0800 028 4291;
028 9023 9090; consider future options including www.cafre.ac.uk
www.investni.com diversification. ● More help and advice is
● Contact the Department for The College of Agriculture, available from the Rural NI
Employment and Learning: Food and Rural Enterprise website. Contact
028 9025 7777; (CAFRE) runs a course for www.ruralni.gov.uk
www.delni.gov.uk farmers thinking of starting
● Contact Learndirect for a new on-farm business. The
Business: 0800 101 901; course helps participating
www.learndirect-business.co.uk businesses develop their Female
business idea and draw up a
business plan.
entrepreneurship
The wide range of business-
Support for agricultural support programmes run by Invest NI’s Investing in Women
Invest NI can also be of benefit Initiative is designed to
businesses to agricultural businesses. increase the number of new
businesses created by women
A range of organisations Next steps and to encourage the growth of
provide advice and support existing businesses owned by
for agricultural businesses ● For more information on women
diversifying into new business support for agricultural
areas or expanding their businesses, contact Rural The Investing in Women Initiative
farming activities Connect: 028 9052 4406; provides support and advice to
96
Where to go now Invest NI regional Main business support
Invest Northern Ireland and its
offices organisations
enterprise partners are here to
Kevlin Buildings Enterprise Northern Ireland:
encourage and support people
47 Kevlin Avenue support for small businesses
like you to start a business and
Omagh BT78 1ER and community enterprises
make it successful.
Contact 028 8224 5763; that serve the Northern Ireland
There is a wide range of help
wo@investni.com market. Contact 028 7776 3555;
we can give you at every stage
www.enterpriseni.com
of the process, so get in touch.
The INTEC Centre
Our specially trained business
36 East Bridge Street Northern Ireland Chamber of
advisers know and understand
Enniskillen BT74 7BT Commerce and Industry:
the issues facing small and
Contact 028 6634 3942; Contact 028 9024 4113;
growing businesses. They can
wo@investni.com www.nicci.co.uk
give you the hands-on advice and
practical information you need to
Drumalane Mill, The Quays, The Prince’s Trust NI: advice
start and run your business.
Newry BT35 8QF and financial support for
You can speak to a business
Contact 028 3026 2955; disadvantaged young people
adviser to learn more about the
so@investni.com looking to start a business.
range of support on offer.
Contact 028 9074 5454;
Call the Go for it helpline on
Oracle Conference Centre www.princes-trust.org.uk
0800 027 0639.
36 Lurgan Road
You should also check our
Portadown BT63 5BL Advantage NI: information,
websites for details of changes
Contact 028 3839 0140; advice and support for
to the regulations in this guide.
so@investni.com entrepreneurs aged under 30.
Contact 028 9335 6730;
Clarence House, 86 Mill Street www.advantage-ni.com
Ballymena BT43 5AF
Invest Northern Contact 028 2564 9215;
Ireland neo@investni.com
Now you have reached the end of this guide, you should be well
on the way to understanding the main rules and regulations
that will affect you when setting up in business. If you need any
further information or advice, don’t worry — help is at hand
You can get free help and advice from a wide range of
organisations, including those listed on these pages. In-depth
details of free publications can be found in the Next steps
sections throughout the guide
97
Paying tax as a self- VAT Protecting the
employed person environment
HM Revenue & Customs: to
HM Revenue & Customs Helpline register for VAT and for advice Northern Ireland Environment
for the Newly Self-Employed: and forms. Contact Agency: information on
to register as self-employed if 0845 010 9000; complying with environmental
you’re going into business as www.hmrc.gov.uk/vat rules. Contact 0845 302 0008;
a sole trader or partnership. www.ni-environment.gov.uk
Contact 08459 15 45 15;
www.hmrc.gov.uk/selfemployed Department of Agriculture and
Business premises Rural Development (DARD).
HM Revenue & Customs Self Contact 028 9052 4999;
Assessment Orderline: forms, The Planning Service: www.dardni.gov.uk
leaflets and factsheets on self- information on planning
assessment. Contact permission. Contact Driver & Vehicle Agency (DVA):
08459 000 404 028 9041 6700; information on carriage of
www.planningni.gov.uk dangerous goods and road
haulage regulations. Contact
Royal Institution of Chartered 0845 402 4000;
www.dvani.gov.uk
Paying employees’ Surveyors (RICS): advice on
land, property, construction and
tax and National associated environmental issues.
Insurance Contact 028 9032 2877;
www.rics.org/uk; Patents, trade marks,
HM Revenue & Customs New email ricsni@rics.org
Employer’s Helpline: to register copyright and
and receive a New Employer’s Land & Property Services: design right
Starter Pack. information on business rates.
Contact 0845 60 70 143; Contact 0845 300 6360; UK Intellectual Property Office:
www.hmrc.gov.uk/paye www.lpsni.gov.uk for help in protecting your own
ideas and checking you are
HM Revenue & Customs not infringing anyone else’s
Employer’s Helpline: advice intellectual property rights.
on paying employees’ tax and Contact 0845 9 500 505;
National Insurance. Contact Health and safety www.ipo.gov.uk
08457 143 143;
www.hmrc.gov.uk/paye Health and Safety Executive for
European Patent Office: to apply
Northern Ireland: information on
for patents in up to 20 European
HM Revenue & Customs health and safety rules. Contact
countries. Contact www.epo.org
Employer’s Orderline: forms and 0800 0320 121; www.hseni.gov.uk
guides on paying employees’ tax
and National Insurance. HSE Books: free and paid for
Contact 0845 7 646 646; publications on health and safety
www.hmrc.gov.uk/paye matters. Contact 01787 881165;
www.hsebooks.co.uk
IT and e-commerce
Federation Against Software Development finance
Theft (FAST): information on Equal opportunities
software piracy and licensing. and discrimination Enterprise Finance Guarantee:
Contact 0845 521 8630; Government scheme
www.fastiis.org Equality Commission: guidance guaranteeing 75 per cent of
on equality legislation. loans between £1,000 and
Business Software Alliance: Contact 028 90 890 890; £1,000,000. Visit
advice on software piracy and www.equalityni.org www.businesslink.gov.uk/sflg
licensing. Contact
020 7340 6080; www.bsa.org/uk Community Development
Finance Association. Contact
020 7430 0222; www.cdfa.org.uk
Training
InterTradeIreland Equity
Data protection Learndirect for business: Network: help and advice for
provides a range of courses and businesses seeking equity
Information Commissioner: business training. finance. Contact 028 3083 4100;
guidance on data protection. Contact 0800 101 901; www.intertradeireland.com
Contact 01625 545 745; www.learndirect.co.uk/business
www.ico.gov.uk
Insurance
Finance and British Insurance Brokers’
accounting advice Association. Contact
0870 950 1790; www.biba.org.uk
Finance & Leasing Association:
find out more about business
asset finance. Contact
020 7836 6511; www.fla.org.uk
Other organisations
Asset Based Finance Association:
information on factoring and UK Trade & Investment: guidance
asset based lending and details for companies that intend to or
of member firms. Contact are already exporting. Contact
020 8332 9955; www.abfa.org.uk 020 7215 8000;
www.uktradeinvest.gov.uk
Chartered Accountants Ireland:
to find a chartered accountant. Trade associations: search for a
Contact 028 9032 1600; trade association in your sector.
www.icai.ie Visit www.taforum.org
Bedford Square
Bedford Street
Belfast BT2 7ES
T: 028 9023 9090
F: 028 9043 6536
W: www.investni.com