As part of a wider coalition drive, Chancellor George Osborne’s Autumn Statement delivered several breaks and benefits for small business owners. Led by the decision to cap business rates at 2% for the forthcoming financial year, there were a number of initiatives designed to empower small business owners and reduce operational costs. While this may well tip the balance for aspiring entrepreneurs and encourage them to establish a business, however, there are numerous legal and compliancy issues that they must first address.
Launching your Start-up Venture Responsibly and Efficiently
While the exact nature of these issues will depend on your business, there are a particularly high number that revolve around employment law, health and safety and tax compliance. With these in mind, consider the following steps for launching your business responsibly and effectively: –
Ensure that your Business is classed in the Correct Tax Bracket
Not all businesses are created equal, either in terms of their resources or company structure. Initially, you will need to decide on a legal framework that suits your business model, and specifically one that ensures compliance with tax regulations and government laws. To begin with, determine you projected turn-over for your first year, as this will inform you whether or not you are eligible to pay VAT (the current threshold is a turnover of £65,000 a year or more). This will also help you to settle on a legal framework, whether you establish a limited company or set-up as a sole trader.
Respect Construction and Health and Safety Laws
If the construction of a site or workplace is part of your start-up plan, you will be required to comply with national health and safety laws as a matter of course. Without this, you may fall foul of a compensation claim or compliancy issue that could cost your business thousands of pounds before it has properly launched. To negate this, ensure that your construction site is equipped with easily identifiable warning signs, which distinguishes hard-hat areas, chemical hazards and potential electrical wiring risks. Suppliers such as Signarama Signs produce an array of similar notices, enabling your business to remain compliant and safe at all times.
Avoid Employing Staff until you have a Suitable Infrastructure
One of the big mistakes that UK start-ups make is attempting to run before they can walk, especially when it comes to implementing growth plans and employing staff. Taking on a team of employees requires significant financial resources and a suitable infrastructure, as you must provide a complaint and safe workplace and a host of benefits aside from their bottom line remuneration. Failure to appreciate this could cause numerous issues and even law-suits in some instances, so think carefully and commit to developing your venture in a considered and organic manner.
