No Nonsense

The
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.
The Guide is brought to you by Invest

Northern Ireland, the Government’s
economic development agency. The
information it contains has been
sourced with the full co-operation and
agreement of a range of Government
departments and agencies.
Invest NI and its enterprise partners can

provide you with a wealth of information
and support services, including a guide
to general business advice — the Start a
Business guide.
If you are thinking of starting a business,

contact the Go for it programme on 0800
027 0639 or www.goforitni.com. If you
are already in business and want to grow,
contact the Growth programme on 0800
223 0266 or www.growthni.com.
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.
This guidance is issued to provide users with general background,

and is not intended to be, nor should it be considered as
amounting to, legal advice which is capable of being relied upon.
Users should seek their own independent legal advice where
required.
If you require this brochure in an alternative format (including

Braille, disk, audio cassette or in minority languages to meet the
needs of those whose first language is not English) then please
contact:
Invest NI’s Equality Team

T : 028 9069 8273
Textphone: 028 9069 8585
E : equality@investni.com
Provided by Invest Northern Ireland and part financed by the

European Regional Development Fund under the European
Sustainable Competitiveness Programme for Northern Ireland.
© Crown Copyright. January 2010.

How to use
The No-Nonsense
Guide
Contents
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
The No-Nonsense Guide The No-Nonsense Guide

When you are setting up a business, you will need to decide on the ‘trading form’ it will
take. Getting the right option for you means finding the right balance between keeping the
administration simple, protecting your personal assets and how you will be taxed in each case
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
The No-Nonsense Guide

Forming a business
Check for changes in the law
Regulations, figures and sums

of money may have changed
since publication
}
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

It worked for me
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
}While I was at university, I

scraped together some money
from my part-time job in a pet
of registering as self-employed
with HM Revenue & Customs,
book-keeping and paying tax.
and distribution centre. By this
time, I had been able to build
real distributorships – indeed,
shop and some of my student I also kept an eye on web now we’ve got our own brand of
loan and started selling forums, like the UK Business and saxophones, Carmichael, which is
small accessories for musical Shell LiveWire forums to see and beginning to develop a real name
instruments and vinyl. I played learn from what other people for itself.
alto saxophone when I was were doing. And I got a lot from Four years on and we were
younger and I was looking for the Start a Business programme working with more educational
something to make a business that Invest NI run – some useful bodies, and I’d also started
out of – you’re always swayed practical advice and, perhaps another business. My accountant
by what you know. more than anything, access to and I had another conversation
I managed to buy some some great contacts. about making Karacha a limited
liquidated stock of sheet music Quite early on, I started company and at that stage we
from a London shop and, with working with an accountant. At decided together - ‘let’s do it’.
that, I dropped the vinyl and that stage, we agreed it was best The business was getting too
specialised in music supplies. to stay as a sole trader – all I large, there was a small financial
I bought a book showing me needed to do once I’d registered benefit and about 10 to 20 per
how to create a website and as self employed was manage cent of the decision was related
built one myself. It wasn’t very a cash book, work through a to credibility. Buying can be
good, mind – but it did start simple profit and loss account easier when you’re a limited
making some sales. and complete my tax return. company and it’s certainly easier
I started as sole trader – it Over the next few years, to sell to other limited companies
was the easiest way to do it. the business developed. We and local authorities.
In terms of getting my tax rented our first premises from I got my accountant to do it
responsibilities sorted out, the North Down Development all. I could have done it myself
there was plenty of good Organisation in Bangor and and bought an off-the-shelf
advice around online about from there we moved into a company online for £20 or
what I needed to do in terms 1,500 sq ft unit with a showroom something, but I thought, well,

Forming a business
You also need business advice
Aaron McCracken/Harrison Photography

This guide covers regulations.
You should also read a guide to
general business advice — from
market research to writing a
business plan
business and any financial Companies House annual

guarantees you have given in returns, giving certain details on 7
order to obtain financing. the company and its directors
However, if the company and shareholders.
fails and you have not carried Limited companies must also
out your duties as a company have their accounts audited.
director, you may be liable to However, most small companies
pay the company’s debts or may with a turnover of less than
be disqualified from acting as a £6.5m and with a balance sheet
director in another company. total of less than £3.26m are
You can raise money for the exempt.
business by allowing individuals To set up a limited
or other businesses to subscribe company, you need to create a
for shares in the company. memorandum of association and
You can also give employees articles of association, which
the opportunity to own a share have to cover issues such as who
of the business. will be running your business,
Keeping time: Adam's business type Alternatively, the company what it will do and where it will
has changed as his firm develops may seek loans from banks or be based.
other lenders, although lenders These documents, along
it’s better to let someone will normally want personal with the standard registration
use their expertise on this. It guarantees for the loan from you. documents (Forms 10 and
was so simple – we discussed Setting up a limited company 12), must be forwarded to
it for about five minutes. may also bring marketing Companies House before you
He handled everything, like advantages if it adds to the can start trading. The standard
registration with the Northern perceived credibility of your registration process costs £20
Ireland Companies Registry business. and takes up to five days to
and setting up articles of Limited companies pay complete. Same-day registration
association. I think it cost corporation tax on their profits, is available for £50.
me something like £150 all while as owner-manager you Company formation agents
in – and saved me the worry will be taxed as an employee of can handle the process (for a
of getting something simple the company in the same way as fee) and, while you can do it
but important wrong, like the anyone else who works for you yourself, it is worth taking advice
dates of incorporation, for (see Next steps below). from a solicitor or a formation
example. There are extra administrative agent to make sure you get it
costs associated with setting up right first time.
~
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

}
companies, page 17 You cannot use offensive
8 ● See Working out tax and NI for names. Your proposed company
employees, page 17 name must not be the same as
● Visit www.nibusinessinfo.co.uk/ Buying can be easier another name already appearing
legalstructures on the register of company
● It is a good idea to seek help
when you’re a limited names held at Companies House
from a business adviser or company and it’s certainly (see Next steps below).
solicitor when deciding the easier to sell to other There are restrictions on the
best legal form for your limited companies and use in a business or company
business local authorities name of a number of ‘official’
● You can get the standard words and expressions, such as
~
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

Forming a business

since publication
● For more information on You buy a licence from an form.

naming your business, read: existing business (known as the If you want to set up a charity, 9
Company Names (GBF2); franchisor) to use their trade you have to apply to HM Revenue
Business Names (GBF3). name, business idea or products & Customs for charitable
Contact Companies House: and services. status (see Next steps below).
0303 1234 505; This normally involves paying Charities benefit from certain
www.companieshouse.gov.uk an initial fee followed by an tax advantages but have a range
● You can check on the ongoing management fee or of restrictions placed on their
Companies House website that royalties on sales. In return you activities.
your business name get support and advice from the Charities can take a range of
is not the same or similar to franchisor. business forms.
that of another company. Visit Franchising has a number of
www.companieshouse.gov.uk/info advantages and disadvantages Next steps
● Make sure your business — a business adviser will be able
name does not conflict with to tell you more and you should ● Visit www.nibusinessinfo.co.uk/
any registered trade marks. get a solicitor to check any legalstructures
You can check this online franchise agreement. ● For more information about
using the UK Intellectual Social enterprises are setting up a social enterprise
Property Office Trade Mark businesses that aim to make a contact the Social Economy
Database. profit to help them fulfil social Network: 028 9077 0502;
Visit www.ipo.gov.uk aims, such as creating or saving www.socialeconomynetwork.org
● You can check availability of jobs, keeping money within the ● For more information
domain names at Nominet local economy and providing about Community Interest
(www.nic.uk) or NetNames services or training to the local Companies, contact 029 2034
(www.netnames.co.uk) community. 6228; www.cicregulator.gov.uk
Social enterprises are ● HM Revenue & Customs
accountable to their members can provide you with more
and to the wider community for information on registering a
Franchises, their social, environmental and charity. Contact:
economic impact. 0845 302 02 03;
social enterprises, Remember that a social www.hmrc.gov.uk/charities
co-operatives and enterprise is not a ‘trading form’
charities in itself. If you are interested in
setting up a social enterprise you
should ask your business adviser
Your new enterprise may which legal structure would be
have different aims or ways of most suitable.
running itself, such as those Co-operatives are one form of
featured below. But you still social enterprise. A workers’
need to establish it within a co-operative is a business owned
conventional legal business and democratically controlled by
form, such as a partnership or its employees.
limited company An alternative trading
form — the Community Interest
Buying a franchise allows you Company (CIC) — is designed
to set up your business without to give social enterprises the
having to start from scratch. flexibility of the limited company

Get your income tax and National Insurance arrangements right from the beginning and one of the
major worries is out of the way. And it is not as complicated as you might think
Sorting out your tax

and National Insurance
employed (see Next steps below).
10
Your employment Employed or The HM Revenue & Customs
leaflet Employed Or Self-
status self-employed? Employed? provides further
guidance.
The first stage in getting Whether you are employed or The HM Revenue & Customs
your tax right is defining your self-employed depends upon leaflet Are Your Workers
employment status the terms and conditions you Employed Or Self-Employed?
work under and the way in explains how rules on
When you run your own which you organise your work employment status
business, the way you are taxed apply to the construction sector
depends partly on the trading Although there is no individual (see Next steps below).
form your business takes and test that is conclusive, you are Special rules may apply if
partly on the way you run your likely to be classed as self- your work is arranged through
business. employed if you: an agency or if it is arranged
If you have set up as a sole ● are free to hire other people on through a limited company or
trader, or are a partner in a your own terms to do the work partnership to provide your
partnership, you could be taxed you have taken on, and pay service or the services of others
either as self-employed or as an them out of your own pocket; to clients. These rules have
employee, depending on the way ● risk your own money in the become commonly referred to
your work is organised (see Next business; as IR35 (see Next steps below).
steps below). ● provide the main items of In these situations, you will
If you set up a limited equipment needed to do the normally have to pay tax and
company, you will be a director work; National Insurance contributions
and therefore taxed as an ● are free to take on work at a as if you were an employee.
employee on your earnings from fixed price regardless of how
that company — even if you long it takes to complete; Next steps
work on your own (see Next ● have a lot of control over your
steps below). work (for example, over hours, ● See Forming a business,
place of work, what you do page 4
Next steps and how you do it); ● See Tax for a limited company,
● work regularly for a number of page 12
● Visit www.nibusinessinfo.co.uk/ different people; ● See Working out tax and NI for
taxes ● have to correct unsatisfactory employees, page 17
● You must define your work in your own time and at ● See Special tax rules for
employment status to make your own expense. the construction industry,
sure you are correctly taxed. page 22
If you are a sole trader or in a Bear in mind that because ● Visit www.nibusinessinfo.co.uk/
partnership, see Employed or you are self-employed for one taxes
self-employed?, right. particular task or job, it does ● Use an online tool to check
If you are setting up a limited not necessarily mean you will your employment status:
company, see Tax for a limited be classed in the same way for www.hmrc.gov.uk/calcs/esi.htm
company, page 12 another. ● Further information about
You can use an online tool employment status, and links
on the HM Revenue & Customs to the publications mentioned
website to determine whether above, are available from HM
you are employed or self- Revenue & Customs. Contact:


since publication
}
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.
National Insurance contributions (2009–10 tax year)
Class 2 contributions £2.40 a week
Class 4 contributions 8% of your annual profit between £5,715 and

£43,875 and 1% on profits above £43,875
Income tax (2009-10 tax year)
Basic personal allowance £6,475
Tax rates on income above personal allowance
Basic rate £0–£37,400 20%
Higher rate More than £37,400 40%


business plan
You also have to make year are liable to corporation tax:

12 flat-rate National Insurance Tax for a the company’s taxable profit is
contributions throughout the its sales income less its business
year (Class 2 contributions).
limited company expenses (see Calculating
You also pay National Insurance business expenses, opposite) and
contributions based on your If you set up a limited any investment allowances (see
profits (Class 4 contributions) company and work for it, the Allowances for equipment and
which are collected with your tax. company will pay corporation premises, page 15).
Self-employed people tax on its business profits Companies have to calculate
pay less National Insurance and you will be taxed as an their own corporation tax
than employees but receive employee of the company liability. There are also specific
significantly fewer benefits. You rules on what can count as
may want to take advice from You will pay income tax and a business expense when
your accountant. employee’s Class 1 National calculating the profits.
Insurance contributions on your You will also be taxed on any
Next steps employment income from the return on your investment in the
company. This is called PAYE company or any dividends and
● See The tax return for — Pay As You Earn. Income tax benefits you receive from the
individuals, page 16 is deducted from all earnings company, as well as on any loans
● See Calculating business above your personal income the company may make to you.
expenses, opposite tax allowance. Your allowance
● See Allowances for equipment depends on your circumstances. Next steps
and premises, page 15 Your business also has to
● Visit www.nibusinessinfo.co.uk/ pay employer’s Class 1 National ● See Calculating business
taxes Insurance contributions for you expenses, opposite
● If you are self-employed and any other employees. ● See Allowances for equipment
you must register with HM Your company’s profits each and premises, page 15
Revenue & Customs. Contact
the Helpline for the Newly
Self-Employed: National Insurance contributions (2009–10 tax year)
08459 15 45 15. Or use
Form CWF1 from the Self- Class 1 11% of weekly earnings between £110 and
Assessment Orderline: contact contributions £844 and 1% on earnings above £844*
0845 9000 404 *Lower rates apply if you belong to a
● HM Revenue & Customs offers contracted-out occupational pension scheme
a guide for people starting Employer’s 12.8% of employee’s weekly earnings above
up in business: Thinking of contribution £110 a week
working for yourself? (SE1).
Contact the HM Revenue
& Customs Helpline for the Income tax (2009-10 tax year)
Newly Self-Employed: 08459 Basic personal allowance £6,475
15 45 15; www.hmrc.gov.uk/
startingup
Tax rates on income above personal allowance
Basic rate £0–£37,400 20%
Higher rate More than £37,400 40%

}
● 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

It worked for me
Mark Barton/Capture Photographic

How I
manage my
bookkeeping
Alix Mulholland started Bog
Standard, her Carryduff-
based creative Irish giftware
business, in 2003. Marketed
as ‘Basic luxury from Ireland’
14 the business has achieved
healthy online and offline
sales at home and abroad.
Alix explains how she takes
care of her books and tax
obligations
}The business very much

started out as a part-time
kitchen table enterprise — in
means I have to file accounts
each year, and my husband
takes care of that and other tax
Basket of plenty: Alix's eye for
detail helps her business prosper
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


since publication
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,

}
goodwill, property or shares in due in two equal instalments
16 other companies. on January 31 (during the
current year) and July 31 (in
Next steps
I use a bookkeeping the following tax year). These
initial amounts are based on the
● Further information about
software package to previous year’s tax bill.
all aspects of Capital Gains ensure accuracy and A balancing payment is due
Tax — including entrepreneurs' save me time on the following January 31,
~
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


since publication
end of tax year, page 20

Corporation tax (2009–10 financial year) 17
● Visit www.nibusinessinfo.co.uk/
taxes Taxable profits Tax rate
● For more information, contact
0845 9000 404; £0–300,000 21%
www.hmrc.gov.uk/sa £300,001–£1.5m Rate rises gradually from 21%–
● To file your self-assessment 28% (marginal relief)
income tax return online, visit
https://online.hmrc.gov.uk More than £1.5m 28%
due within nine calendar months ● Visit www.nibusinessinfo.co.uk/

The tax return for and one day after the end of its taxes
accounting period. You can be ● More information about
companies fined for inadequate tax records corporation tax is available
or paying tax late. You must keep from HM Revenue & Customs.
Your company is responsible company records for at least six Visit www.hmrc.gov.uk/ct
for calculating and paying tax years. ● If you do not receive a copy
on its profits Shortly after the end of the of form CT600 automatically,
company’s accounting period, you must request one either
If your business is a limited you should receive a Company from your local HM Revenue
company or limited liability Tax Return form (CT600) & Customs office or from
partnership registered with from HM Revenue & Customs. the Corporation Tax Self
Companies House, you must let However, if you do not receive Assessment Orderline. Contact
HM Revenue & Customs know this for any reason, it is still 0845 300 6555;
that it is operating within three your responsibility to obtain and www.hmrc.gov.uk/ct
months — unless they have submit a return and to pay the
already been in touch with you. tax owed.
Accounting periods are the You can send HM Revenue &
basis periods for corporation Customs a paper version of form Working out tax and
tax. Your first accounting period CT600 or you can file it online.
begins when your company starts Online filing will be a requirement
NI for employees
operating. Accounting periods do from April 2011.
not have to mirror the tax year, Corporation tax bands are set If your business has employees,
but they must not be longer than out in the table on this page. The you will need to set up payroll
12 months. levels may be reduced for certain arrangements. You have to
You must keep detailed companies, especially if there work out the tax and National
records relating to all income are other companies under the Insurance contributions owed
and expenses. If you are a limited same control. For example, if you and pay them to HM Revenue &
company, you must ensure that own and run two companies, the Customs. Some of this process
you operate the correct Pay As thresholds will be halved for each can be completed manually,
You Earn (PAYE) procedures for company. but it is now a requirement for
you and any other employees. almost all employers to file a
Once you have registered Next steps number of key forms online
your limited company, you will
be responsible for working out ● See Working out tax and NI for Income tax is deducted from an
and paying any corporation tax employees, below employee’s pay through the Pay

As You Earn system, PAYE. Insurance number and get them page 10
18 You must register as an to fill in the relevant part of a ● Visit www.nibusinessinfo.co.uk/
employer with HM Revenue & form P46. With this information, taxes
Customs. You will be sent a PAYE the table in the Paying Someone ● You must register as an
reference number and a New for the First Time booklet (see employer with the HM
Employer’s Starter Pack. The Next Steps below) will show you Revenue & Customs. Contact
pack comprises booklets and the tax code to use. 0845 60 70 143;
a CD-ROM that contain all the Then call the HM Revenue www.hmrc.gov.uk/paye
forms, tables and information & Customs New Employer’s ● For information, read Paying
you need to operate your payroll Helpline, which will tell you Someone For The First Time
system. You can also access all whether you need to send the (P49). Contact 08457 646
of this information on the HM P46 to your tax office. 646; www.hmrc.gov.uk/paye
Revenue & Customs website. Updating an employee's form ● For information on how to
For each employee, you must P11 or equivalent payroll record pay employees’ tax and
use a form P11 to record wage for each payday tells you how National Insurance, see Paying
payments, the income tax and much net pay needs to go to the employees’ tax and NI, below
National Insurance contributions employee — and how much is due ● For more information on PAYE
due from the employee and the to HM Revenue & Customs. Other and online filing, contact
employer's National Insurance deductions such as pensions 0845 60 70 143;
contributions you must pay. can also affect the size of an www.hmrc.gov.uk/paye
You can use paper P11s or you employee's pay packet.
can keep electronic records using If you are asked to do so, you
commercial payroll software or have to deduct student loan
the free P11 Calculator on the repayments from an employee’s Paying employees’
CD-ROM. HM Revenue & Customs pay packet and pay them to
recommends keeping electronic HM Revenue & Customs. You
tax and NI to HM
records as it simplifies your end- must record any student loan Revenue & Customs
of-year tasks now that almost payments deducted on the
all employers are required to file employee's form P11. You then Tax and National Insurance
their Employer Annual Return add the student loan deductions contributions are paid to HM
online. to the income tax and National Revenue & Customs every
When a new employee starts Insurance that you are due to month unless your business
work with you, you will need to pay to HM Revenue & Customs. collects less than £1,500 a
find out their National Insurance month, in which case it can be
number and their tax code Next steps paid quarterly
before you can fill in form P11.
If they have worked before, ● For more information on your Keep records of your total
ask the employee for parts personal tax and National monthly or quarterly payments
two and three of the P45 form Insurance: if you are self- to HM Revenue & Customs on
provided by their previous employed, see Tax and NI for form P32, which is available
employer. This gives their the self-employed, page 11; online or in the New Employer’s
National Insurance number and if your business is a limited Starter Pack.
tax code, as well as details of company, see Tax for a limited Tax and National Insurance
their tax and pay to date in the company, page 12 contributions must be paid to
current tax year. ● For information on your HM Revenue & Customs by the
If the employee does not have employment status, see 19th of each month if you pay by
a P45, ask for their National Employed or self-employed?, cheque, or by the 22nd if you pay


since publication
}
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.


since publication
}
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

than 30 years ago. The rates company.

21
Tax forms when an vary, depending on the type of Employees will not normally
vehicle (for example, cars, vans be taxed on the use of the
employee leaves or or heavy-goods vehicles). Check vehicle if — including the value
dies with the Driver and Vehicle of the vehicle benefit — they
Agency (see Next steps below). earn less than £8,500 in a tax
In both cases, you complete a Personal taxation on the use year or if they use a pool car of
P45 form of cars for business works in two the business. (This is a vehicle
ways: one for the self-employed routinely used by more than
When an employee leaves, fill in and another for employees, one employee and not kept at
a P45 with details of their gross including directors of limited an employee's home when not
pay, tax code and tax deducted companies (see Next steps below). being used for business, nor
in the year to the date of leaving. If you are self-employed, you used privately in any other way.)
You then send one part of the have two choices. Otherwise, employees are
form to HM Revenue & Customs You can claim the actual taxed on the benefit, the charge
and give the other three parts to expenses of using a vehicle for being a percentage of the
the employee. business when you are working vehicle’s list price. For almost all
If an employee dies, complete out your profits. If you take this cars, the tax depends on the level
a P45 and send all four parts option, you can also claim capital of carbon dioxide emissions and
of it to your HM Revenue & allowances if you own the vehicle the fuel the vehicle uses. There is
Customs office. (see Next steps below). generally a lower tax charge on
Alternatively, you can use more energy-efficient cars.
Next steps the rates from the Approved If employees receive any fuel
Mileage Allowance Payments for private use which they do not
● Visit www.nibusinessinfo.co.uk/ (AMAP) scheme to calculate pay for themselves, they will also
taxes your vehicle expenses using a be taxed on this benefit.
● Further information is fixed rate for each business mile. If employees use their own
available from HM Revenue & Rates depend on the level of cars for business purposes, they
Customs. Visit mileage — full details are on the can be reimbursed under the
www.hmrc.gov.uk/paye HM Revenue & Customs website. Approved Mileage Allowance
Under this system, you cannot Payments (AMAP) scheme at a
claim for capital allowances or set rate per business mile. The
any interest you pay on a loan to rate depends on the number of
Business vehicles buy the vehicle. business miles they travel. If you
In both cases you must keep pay the employee no more than
and tax adequate records to back up the the maximum calculated using
figures on your tax return. the appropriate rate, you can
The tax you pay related to If you are employed, the rules make the payment free of tax
vehicles used for your business are different. If the business and National Insurance.
depends on a variety of makes a car available to an Businesses that make vehicles
elements, including the legal employee for their private as available to employees for their
form your business takes and well as business use (a ‘company private use must annually report
your employment status car’), the employee will normally the taxable value of the benefit
be taxed on it as a benefit. to HM Revenue & Customs on
Every vehicle is subject to a Remember: you will be treated form P11D. Employers must also
payment of vehicle excise duty as an employee for tax purposes pay Class 1A National Insurance
unless it was manufactured more if your business is a limited on the taxable value of cars and

fuel made available to employees For Work — Guidance For should be gross or whether
22 for their private use. There Employees. Contact the deductions should be made.
are also VAT rules on business HM Revenue & Customs The standard rate of deduction
vehicles (see Next steps below). Employer’s Orderline: is 20 per cent. A higher rate
If your business buys a car, 0845 7 646 646; of 30 per cent applies for
it can claim a capital allowance www.hmrc.gov.uk/mileage subcontractors that HM Revenue
(see Next steps below). If your & Customs has not been able to
business leases vehicles, the cost verify. Contractors must make a
can be deducted from taxable monthly return to HM Revenue &
profits. Special tax rules Customs detailing the payments
The rules in this area are made to all subcontractors.
complex. You should check
for the construction Subcontractors must also
the position with HM Revenue industry register with HM Revenue &
& Customs or consult your Customs. They can apply to be
accountant. The Construction Industry paid gross by contractors if they
Scheme (CIS) provides a meet turnover, business and
Next steps set of rules for the payment compliance criteria.
of income tax and National
● See VAT on business vehicles, Insurance if you are in the Next steps
page 29 construction industry
● See Allowances for equipment ● Visit www.nibusinessinfo.co.uk/
and premises, page 15 In the construction industry, constructionindustry
● See Employed or businesses fall into two main ● You can get further details
self-employed?, page 10 categories: contractors and on the Construction Industry
● Visit www.nibusinessinfo.co.uk/ subcontractors (though it Scheme from HM Revenue &
businessvehicles is possible for a business to Customs. Contact
● You must arrange your vehicle be both a contractor and a 0845 366 7899;
excise duty on any business subcontractor). www.hmrc.gov.uk/cis
vehicles. Contact the Driver A contractor is any person
and Vehicle Agency: or business that pays others
0845 402 4000; to carry out construction
www.dvani.gov.uk work. (Businesses outside Your business rates
● HM Revenue & Customs can the construction sector can
give you further information be classified as contractors if
on business vehicles and tax. their construction expenditure When you start your business,
Contact the New Employer’s averages more than £1 million you will probably have to
Helpline: 0845 60 70 143. If over three years.) pay business rates for your
you are self-employed, call the Broadly, a subcontractor is any premises — sometimes even if
Self-Assessment Helpline: person or business that carries you work from home
0845 9000 444. out construction work.
● Further information about Contractors must register with Usually the occupier of business
tax on business vehicles is HM Revenue & Customs. They premises has to pay non-
available on the HM Revenue & must also must verify the tax domestic rates. This can be the
Customs website: status of subcontractors before owner-occupier or a leaseholder.
www.hmrc.gov.uk/cars paying them for the first time Agricultural land and buildings
● For more information read: — HM Revenue & Customs will are exempt from business
Using Your Own Vehicle determine whether the payment rates. And most manufacturing


since publication
}
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
taxes
● Inform Land & Property
Services that you are going
to be occupying business

If your business supplies goods or services exceeding £68,000 each year, you must register for value
added tax (VAT). You will have to charge VAT on your sales and pay it on most purchases. But don’t be
daunted — a lot of the paperwork is the kind of thing a well-run business should be doing in any case
What VAT will mean

for you
charges a lower than average ● taxed at a zero rate;
24
What is VAT? amount of output tax, it could be ● exempt from VAT.
worth registering to reclaim the All goods and services that
input tax that you have paid. are not exempt are referred to
Value added tax (VAT) is a tax by HM Revenue & Customs as
on sales of goods and services. Next steps ‘taxable supplies’.
It is not a tax on profits. VAT-registered businesses must
Businesses must register ● See Keeping VAT records, add the standard rate of VAT to
for VAT if they exceed the opposite the value of most products and
registration threshold ● Visit www.nibusinessinfo.co.uk/ services when they are sold.
taxes The reduced rate must be
Registration for VAT is compulsory ● You can register with HM charged on some products and
for most businesses that supply Revenue & Customs for VAT services, including: domestic
goods and services amounting to online or by using form VAT 1. fuel or power; various kinds of
more than £68,000 (2009-10 tax Contact: 0845 010 9000; alterations and improvements
year) in any 12-month period. You www.hmrc.gov.uk/vat to premises; women's sanitary
must register within 30 days of ● Further information about VAT products; smoking cessation
reaching the threshold, or if you is available from HM Revenue products; children's car seats.
expect your turnover to exceed & Customs. Contact 0845 010 There are also specific rules
the threshold in the next 30 days. 9000; www.hmrc.gov.uk/vat on products and services that
Businesses collect VAT on ● For further information on are zero-rated. In these areas,
the Government’s behalf. All registering voluntarily contact VAT is applied at zero per cent.
businesses pay VAT on most HM Revenue & Customs on Businesses that offer zero-rated
purchases. This is called input 0845 010 9000 — or seek products or services can still
tax. Registered businesses advice from your accountant reclaim the input tax they have
charge VAT on the goods paid on purchases. Zero-rated
and services they sell. This products include: most food
is output tax. (but not meals in restaurants or
If a VAT-registered business What VAT rate will I cafés and hot takeaway food and
receives more output tax from drink); books; newspapers; young
sales than it pays in input tax
have to charge? children’s clothing and shoes;
on purchases, it must pay the exported goods; most public
difference to HM Revenue & The rate of VAT that you must transport services.
Customs at fixed intervals (see charge varies according to the Exempt products and services
Next steps below). type of product or service you include: insurance; providing
If more input tax has been offer credit; certain types of education
paid than output tax charged, and training; certain services
HM Revenue & Customs will Goods and services (supplies) are from doctors and dentists;
refund the difference to your divided into four categories for selling, leasing or letting land
business. VAT purposes. They can be: and buildings (but not garages,
Businesses with a turnover ● taxed at a standard rate parking spaces or hotel and
below the £68,000 threshold can (17.5 per cent, although a holiday accommodation).
register voluntarily. Sometimes reduced rate of 15 per cent Any business which offers
there can be a business advantage was introduced temporarily in some goods or services that are
in doing this. For example, if December 2008); subject to VAT and some that
your business pays a higher than ● taxed at a reduced rate (five are not has ‘partial exemption’.
average amount of input tax and per cent); This means it can generally only

What VAT will mean
for you

since publication
}
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

It worked for me

How I meet
my VAT
obligations
Formed in June 2009,
Bangor-based start-up Blue
Tube Design charges VAT
on most of the services and
products it sells. However,
26 owner Alan Anderson was
surprised at how easy it was
to become VAT registered
and the range of expenses
from which his business could
reclaim VAT
}For many years I’d been

freelancing. Businesses would
hire me for fixed terms: I’d
a little bit more, I was surprised
to find out how much VAT I could
reclaim. This even applies to
Useful: Alan found registering
for VAT helps his cashflow
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

What VAT will mean
for you

business plan
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


since publication
& 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.

What VAT will mean
for you
}
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
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

All you need to know about the rules for business premises, using your home as a workplace and
the health and safety measures that you will have to adopt once your business is operational
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.

Premises and
health and safety

since publication
}
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
● See Planning consent for

businesses, opposite
● See Your business rates,
page 22
~ A fire can have disastrous
effects. Every business needs
to undertake simple steps to
minimise the risk
An assessment of the specific

homeworkplace risk that fire poses is compulsory
● You must check to see if you for every business. Risk
require planning permission. assessments are explained
Contact the Planning Service elsewhere in this publication (see
for advice: 028 9041 6700; Next steps below).
www.planningni.gov.uk Brian McMahon There are certain areas that
● You must check with the Land & McMahon Engineering you must consider for a fire-
Property Services to see if you risk assessment. The fire safety
will be charged business rates. officer at your local fire station
Contact 0845 300 6360; can provide you with details.
www.lpsni.gov.uk Your premises must meet
● You should check with your certain fire-safety standards. You
mortgage lender, landlord and/ need to consider escape routes
or freeholder to see if there are to a place of safety, fire-resistant
any reasons why you cannot doors and walls, firefighting
base your business at home equipment, fire alarms, emergency
● You should check your tax lighting, safe storage of flammable
position with HM Revenue & materials and staff training.
Customs or an accountant If your building’s fire safety
● You must carry out a health is sub-standard, you may need
and safety risk assessment to make alterations. And if you
when you start trading. change your workplace in any
See Carrying out a risk way, it is essential that fire-safety
assessment, page 36 standards are still met.
● For more information about Some businesses also require
health and safety when a fire certificate. You must obtain
working at home, read: a fire certificate if:
Risk Assessment Simplified. ● you employ more than 20
Contact 0800 0320 121; people or more than ten of
www.hseni.gov.uk your employees work above or
Homeworking: Guidance For below the ground floor;


business plan
}
● 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

Premises and
health and safety
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

It worked for me

How I
made sure
we got our
premises
right
Brian McMahon, co-founder
34 of McMahon Engineering,
leased the most cost-effective
premises when his business
was starting up. But as the
firm grew he needed more
space, so has since found
new land and premises that
have significantly helped his
expansion efforts
}When I set up the business

with my son back in 2001
we knew we had to lease
We also asked the Health and
Safety Executive to visit our
premises and carry out a risk
Looking ahead: room to expand
is a priority for Brian
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

Premises and
health and safety

since publication
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.


business plan
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

Premises and
health and safety
}
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
You must insure against

claims arising from illnesses,
diseases or injuries your staff
may pick up as a result of
working for you
~ You must have a health and
safety policy, and if you have
more than four employees it
needs to be in writing. This policy
must be made easily available
and revised regularly, particularly
Employers’ liability insurance, whenever the physical nature
which protects your business of your workplace changes. You
against claims from employees must also have procedures in
for accidents or sickness they Brian McMahon place in case of fire or other
may suffer as a result of working McMahon Engineering emergencies.
for you, is a legal requirement. You should either display the
The statutory minimum cover is poster Health and Safety Law
£5m and you should display the in Northern Ireland in any place
certificate in any place of work. of work, or give employees the
Keep your certificates even after same information in a leaflet. It
they have expired — employees is available from The Stationery
could make a claim many years Office. You must give employees
after they have worked for you. information about risks to their
health and safety and about
Next steps the preventive measures that
are in place to control risks. All
● Visit www.nibusinessinfo.co.uk/ employees also have a right
insurance to be consulted on health and
● Read: Employers’ Liability safety issues that may affect
(Defective Equipment And them.
Compulsory Insurance) If you do not oversee health
(Northern Ireland) Order and safety in your business, you
1972: A Guide For Employers. must appoint someone to do
Contact the Health and Safety so. They will need to be aware
Executive for Northern Ireland: of all relevant law and industry
0800 0320 121; standards that exist and you
www.hseni.gov.uk must give them the authority to
implement the health and safety
policy.

}
Next steps Providing suitable first-aid
38 facilities is compulsory and
● Visit www.nibusinessinfo.co.uk/ staff need to know where any
health_and_safety first-aid boxes are located. You Plan any move in detail and
● You must create a health and need to nominate someone to
safety policy. If you have more be responsible for restocking
don't underestimate the
than four employees, put it in first-aid boxes and to take charge amount of time it will take.
writing in an emergency (and call an You may lose trade if you
● The poster ‘Health and Safety ambulance if necessary). You can't keep supplying your
Law in Northern Ireland’ should carry out a first-aid needs customers during the move
can be ordered from The assessment to see whether this
~
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.

Premises and
health and safety

since publication
Next steps Workstation and workplace ● For more information read:

layout should be planned to Working With VDUs (INDG36). 39
● Visit www.nibusinessinfo.co.uk/ prevent possible disturbing glare Contact 0845 345 0055;
health_and_safety or reflections on the screen from www.hse.gov.uk/pubns
● For more information read: sources of light such as windows.
The Guide To Workplace Workstations should give the
Health And Safety. Contact the user sufficient space to change
Health and Safety Executive position and vary movements. Reporting incidents
for Northern Ireland: Training must be given to
0800 0320 121; users on health and safety and
www.hseni.gov.uk how to use software. The Reporting of Injuries,
Employers must plan the Diseases and Dangerous
activities of users so that their Occurrences Regulations
daily work on display screens (RIDDOR) require you to report
Computers and is periodically interrupted by and keep records of accidents
breaks or changes of activity. It and other workplace incidents
employees is recommended that users take
intervals away from screens at If there is a serious injury, death,
You have to make sure you and least every two hours. work-related disease or other
your employees use computers Employees using computers dangerous incident in your
safely. As well as checking that are entitled to eyesight tests paid workplace, you must report it to
monitors and keyboards allow for by you at regular intervals or the Health and Safety Executive
users to work comfortably, when they are requested. for Northern Ireland or your local
you should give users regular You must carry out regular authority.
breaks and carry out risk risk assessments on computer Reportable injuries include
assessments workstations and the people major injuries such as broken
who use them to ensure they bones or loss of consciousness,
Visual display units (VDUs) are safe. You need to assess the as well as less severe injuries
or monitors must show clear entire workstation (including that result in someone being
characters with adequate equipment, furniture and its away from work or unable to
spacing and the screen image work environment), the work carry out their normal duties for
must be stable with no flickering. being done on the computer more than three days.
Users should be able to adjust and any specific needs of the You must also keep records
the brightness and contrast staff using the workstation. Pay of any reportable occurrence for
easily. The screen must tilt and particular attention to users’ three years.
swivel and be free of reflected posture. You must take steps to
glare. reduce any potential health risks Next steps
The keyboard must be tiltable, you find.
and separate from the screen ● Visit www.nibusinessinfo.co.uk/
(unlike most laptops), allowing Next steps health_and_safety
a comfortable working position ● You must keep an accident
and avoiding fatigue in the arms ● You must carry out book
or hands. workstation health checks ● Further information is
The work chair must be stable, and take any steps necessary available from the Health and
with height adjustment, and the to minimise any risk to Safety Executive for Northern
seat back must be adjustable in employees’ health when using Ireland: 0800 0320 121;
both height and tilt. computers www.hseni.gov.uk

All businesses own assets called intellectual property, which can include the name of the business
or copyright, designs, patents and trade marks. Intellectual property can be worth money. Some
types have automatic legal protection. Others can be protected by registration. You must also be
aware of and respect other businesses’ intellectual property
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

Protecting your

since publication
}
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

It worked for me
Simon Graham/Harrison Photography

How I
protected
my
business
idea
Malcolm Emery started his
42 Ballymena-based energy-
saving products business, The
One Switch, in 2008. Malcolm
explains how his business
safeguarded its intellectual
property
}Our primary product is the

StandbyOff™ plug socket,
which saves energy and money
functionality to ours. When we
looked a bit deeper we realised
their technology was different —
Safety first: Malcolm protected
his IP from the outset
by turning off electronic ours is unique. My advice? Assess your

equipment when not in use. We contacted a patent business, identify its intellectual
Because it's highly innovative attorney who advised us to file property, and decide what
and aimed at the mass market a patent application, which we you need to protect. Do some
we knew we needed to patent did with the European and UK research to find out whether
its pioneering technology. patent offices. That then gave us your IP is unique. Ask at your
I came from a food a two-year period during which local university to see whether
manufacturing background we could develop the product. If they’re aware of any products
so I’d no IP experience, but I someone came along with similar resembling yours. If you’re
realised the importance of IP technology in that time we were confident your IP is unique,
protection. If you come up with protected — our flag was already speak to a reputable patent
a good idea, the potential for in the ground. attorney.
someone to try to rip it off is We also trademarked our Part of the reason we’ve
considerable. And investors product name. Knowing the been successful is we’ve found
won't be interested unless rights we’d secured gave us good expert advice — from
your intellectual property (IP) added confidence to go through Invest NI and others. Initially
is protected. the design and manufacturing try to find free advice, but that
We filed a patent a month phases. We have every faith in will only get you so far. When
before we began trading. our manufacturers, but there are you have to pay for it, see it as
Timing is crucial. Filing too those that will try to steal your an investment, not an expense.
early or too late would have idea if it’s not protected.
~
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

Protecting your

business plan
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


since publication
years from first marketing up to of the Chartered Institute of

44
Registered design an overall limit of 15 years from Patent Attorneys, provide
first creating the design. professional paid-for advice
and design right An application for design on designs. Contact 020 7405
registration requires just a few 9450; www.cipa.org.uk
You can protect the design pictures showing different views of
of the outward shape or the design and some information
configuration of products, and about how the design might be
patterns and ornamentation applied. The design’s creation must Intellectual property
involve ‘freedom of design’ — so if a
Design right, an automatic jug has a distinctive shape it can be
protection overseas
right like copyright, and design registered because it could have a
registration give the owner variety of shapes and still be a jug. Protection of trade marks,
the right to stop other people Remember that legally patents, copyright and
making, using or selling the same licensing your design ideas to designs becomes more
or similar designs. other users can be an important complicated if you want
The appearance of a product’s source of revenue. your business to tap into
outward aspect may be crucial foreign markets or you
to its market success or failure, Next steps want to protect your rights
whatever its other attributes. abroad. The UK Intellectual
A registered design is ● Visit www.nibusinessinfo.co.uk/ Property Office can advise you
a monopoly right for the intellectualproperty
appearance of the whole or ● For more information about Trade marks are territorial; a
part of a product, resulting protecting your designs, UK trade mark offers protection
particularly from the features of contact Invest NI’s Technical only within the UK. There are
lines, contours, colours, shape, Advisory Unit: three routes to secure protection
texture and materials of a 028 9069 8825; overseas for your trade mark:
product or its ornamentation. www.investni.com ● a series of individual trade
These designs could be ● UK-IPO provides further mark applications filed in
anything from patterns on guidance on its website and each country in which you are
textiles or plates to the shape of will answer your questions on seeking protection;
a car or part of a product, such how to protect your ideas or ● for protection in all European
as a kettle handle. find out about other people’s Union countries, applying
Design right is less intellectual property rights. for Community Trade Mark
extensive, protecting just shape Contact 0845 9 500 505; registration at the Office for
and configuration but not www.ipo.gov.uk Harmonisation in the Internal
ornamentation. ● Check that any product or Market (OHIM);
A registered design, which service you are planning to ● an application to the
requires an application to the offer does not infringe any World Intellectual Property
UK Intellectual Property Office existing rights. Penalties can Organisation (WIPO) in
(UK-IPO), also provides stronger be severe, whether the breach Geneva to obtain trade mark
protection than design right. is deliberate or not. Trade registration in a number of
A registered design lasts for marks, registered designs and countries across the world.
five years initially and may be patents can be checked online
extended over four five-year at the UK-IPO website. Visit Patents are similarly territorial; a
periods up to a maximum of 25 www.ipo.gov.uk UK patent offers protection only
years. Design right lasts for ten ● Patent attorneys, members within the UK.

Protecting your
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

As well as the general regulations that all enterprises must comply with, many businesses
— from childminders and sandwich-bar owners to taxi drivers — are affected by specific regulations
and sometimes need special licences
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;

Is your business in a
specialised sector?

since publication
● nursing agencies. if you have hired the vehicle or

47
Childminders must register with
... and if you are transporting goods for
just one day.
their local Health and Social many other There are different types of
Services Trust.
Massage services and
special cases licence, depending on where you
are transporting the goods and
businesses that pierce the skin for whom you are carrying them.
(such as tattooing, cosmetic Many other businesses For safety reasons strict rules
piercing and acupuncture) must require licences or also cover the transport of a
generally get a licence from their registration and must range of hazardous materials
local authority’s environmental conform to regulations which could be poisonous,
health department. governing their operations flammable, explosive or
corrosive.
Next steps These pages give an outline Businesses which transport
of some of the special people by road for reward are
● To find your local Health and requirements applying to required to hold either a Taxi
Social Services Board or Trust, broad sectors to help you Driver’s Licence (for vehicles
visit www.hscni.net consider whether your planned capable of carrying up to eight
● Contact the Department for business might be affected. passengers) or a Road Service
Employment and Learning: But there are many other Licence (for vehicles capable
028 9025 7777; activities that are regulated of carrying more than eight
www.delni.gov.uk — from manufacturing, passengers).
● Contact the Department of farming, boarding kennels Strict rules also apply to both
Education: 028 9127 9279; and street trading to money goods- and passenger-carrying
www.deni.gov.uk lending and handling asbestos. vehicles on maintenance, the
● Contact the Regulation and number of hours drivers may
Quality Improvement Agency: Next steps work and how these hours are
028 9051 7500; recorded, and the type of driving
www.rqia.org.uk ● Visit www.nibusinessinfo. licence needed.
co.uk/licences The DVA can advise on
● Contact your local operating commercial vehicles.
authority’s environmental
Transport businesses health officers Next steps
● Check whether your
business is affected by ● Businesses operating
Businesses that transport special regulations. commercial vehicles or taxis
goods or people for reward Contact Invest NI: and private hire vehicles
normally need a licence 028 9023 9090; should contact the Driver and
www.investni.com/publications Vehicle Agency (DVA):
Businesses which transport ● For credit licences (for 0845 402 4000;
goods using a motor vehicle many activities, from www.dvani.gov.uk
allowed to weigh more than lending money to hire
3.5 tonnes when fully loaded services) check with the
need an operator’s licence from Office of Fair Trading:
the Road Transport Licensing 08457 224499;
division of the Driver and Vehicle www.oft.gov.uk
Agency (DVA). This applies even

Selling correctly, getting paid on time and properly storing and using information about other
people and businesses are covered by some straightforward rules designed to make sure you act
responsibly and get a fair deal for yourself and your customers
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

Trading regulations
and data protection

since publication
}
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

It worked for me
Marie Therese Hurson/Harrison Photography

How I meet
my legal
obligations
when selling
online
Oscar Woolley started Suki
50 Tea, based in West Belfast,
with his friend Anne Rooney
in March 2005. They now
boast customers throughout
the world and Oscar explains
how they meet their legal
responsibilities when selling
online and why it's been good
for business
}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

Trading regulations
and data protection

business plan
consumer to accept a different authority environmental health The price-marking regulations

product, a higher price or a department or apply to it for a do not apply to services or 51
reduction in their rights, for licence. products supplied as part of a
example); If your retail business will lend service (such as shampoo used
● imposing unreasonable money, offer or arrange credit, by a hairdresser).
restrictions or obligations on or hire, lease or rent out goods,
the consumer; you will probably also require a Next steps
● being unclear or difficult to consumer credit licence, issued
read. by the Office of Fair Trading. ● See Unfair trading, page 48
These cost £970 (£480 for sole ● See Terms and conditions of
Next steps traders). sale, page 48
You must clearly mark the ● Visit www.nibusinessinfo.co.uk/
● See Unfair trading, page 48 price of the products you sell, fairtrading
● Visit www.nibusinessinfo.co.uk/ whether this is in a shop or via ● The rules on price marking can
tradingstandards distance sales such as mail be complicated. Further advice
● Further advice is available order. Prices may be marked is available from Trading
from Trading Standards. either on the product itself or Standards. Contact
Contact 028 9025 3900; close to it, so a consumer can 028 9025 3900; www.detini.
www.detini.gov.uk/ easily see and understand them. gov.uk/deti-consumer-index
deti-consumer-index They must be unambiguous, ● More information about
easily identifiable and clearly credit licences is available
legible. Consumers should not in the Office of Fair Trading
have to ask for assistance to see publication Do You Need A
Special rules for the prices. Credit Licence?
In some cases, as well as Contact 0800 389 3158;
shops displaying the selling price, you www.oft.gov.uk
must show the unit price. This
Shops must comply with a applies to unpacked goods such
number of rules in addition as loose fruit and vegetables,
to the regulations laid down and to goods which are packaged Distance selling
by consumer-protection in varying quantities — such as
authorities detailed above blocks of cheese of different
weights. The unit price is There are some extra rules
You may need a licence, usually the price per kilogram if you sell goods or services
dependent upon the type of or per litre. to consumers by mail order
retail business you choose to run. Some loose goods can be sold (including catalogue shopping),
Pet shops, sex shops and street by number as well as by weight. phone, fax, Internet or digital
traders must apply to their local For instance, you can sell apples TV. But they do not apply to
authority for a relevant licence. either by the kilogram or for a contracts with other businesses
Licence fees vary. Restaurants, certain price per apple. or for financial services
shops and mobile shops selling Large shops — 280 square
food, massage services and metres or more — must also Consumers must be provided
businesses that pierce the display unit prices for packaged with clear and comprehensible
skin (including tattooing, goods. information to help them decide
acupuncture, cosmetic piercing Prices shown must be in whether to buy. You must make
and electrolysis) generally sterling and inclusive of VAT and clear:
need to register with their local any other taxes. ● your business’s name and,


since publication
}
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

Trading regulations
and data protection
● 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

or debit card payments from Bank of England base rate plus
54 customers — whether in person, eight per cent. Court action for debts
over the Internet, in writing or by You can also claim
phone or mail order. There are compensation if you wish. You
nine acquiring banking groups can claim £40 for debts of less Court action may be a last
in the UK — mostly well-known than £1,000, £70 for debts resort if another individual or
high-street names. between £1,000 and £9,999 and business fails to pay you
You will need to establish £100 for debts of £10,000 or
suitable procedures and take more. The decision whether to Before you start court action, you
advice from your acquiring bank charge interest or compensation should carefully weigh up how
to minimise the risk of fraud. You costs is a matter for you. likely you are to win your case
should be on your guard against You can challenge customers and how much money the person
accepting stolen or counterfeit who attempt to impose terms or business you take to court has.
cards or fraudulent transactions, and conditions that remove If they have no money or assets,
especially when the customer is your rights to claim interest there is nothing a court can do to
not present for the transaction. or compensation. Businesses make them pay you. Even if your
with fewer than 250 employees non-paying customer is a limited
Next steps can ask a representative body company, it may in itself have no
such as a trade association to assets.
● More information on credit go to court on their behalf to It is advisable to get
and debit card security and on challenge such terms. professional help before you
fraud prevention is available Other businesses may of launch legal action.
from Cardwatch. course choose to charge if you If you take someone to court
Visit www.cardwatch.org.uk pay their bills after the due date. for less than £2,000 you can use
While the law tries to offer a the fast-track small claims court.
remedy for late payment, good You can start this process online
credit-management procedures or by obtaining Form 125 from
Getting paid on time will be more effective in the your local county court.
long-term, significantly boosting For amounts between £2,000
your cashflow and preventing and £15,000 you need to
The law discourages people late payments in the first place. complete a civil bill — the form
from paying late by allowing required is CCR Appl Form 9.
you to charge late-payers more Next steps Amounts of more than
if you wish. There are also £15,000 can be dealt with
other options you may consider ● Visit www.nibusinessinfo.co.uk/ either in the County Court or
if getting payment proves to be promptpayment High Court.
a problem ● The Better Payment Practice When you make a claim, the
Group offers an online interest court will contact the person you
If another business pays you calculator, standard letter are taking action against and a
later than agreed, you have the templates and guidance on the hearing or trial will be organised.
right to claim interest on the law. Visit www.payontime.co.uk You will have to pay all your
overdue amount. Unless your ● For more information, read: legal fees while you are making
terms and conditions or Better Payment Practice: Your a claim. But if you win, the
invoices state otherwise, Guide To Paying and Being court may order whoever you
payment will be due after 30 Paid On Time (URN 04/606). have taken to court to repay a
days. Interest on overdue bills Contact 0845 015 0010; proportion of your costs as well
should be calculated daily at the www.berr.gov.uk/publications as what they owe you.

Trading regulations
and data protection

business plan
}
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.
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


since publication
56
Insuring against
liabilities
Sometimes things go wrong

and it may be worth insuring
your business against any
}
You must store information
securely and only use it
only for the purpose for
which you gathered it
Data protection
If you hold information on

paper or in electronic form
about employees, customers,
potential customers, suppliers
~
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

Trading regulations
and data protection
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

Taking on your first employee is a big step. But the legal requirements, explained here, can help you
think about the recruitment and appointment process and focus on what is best for your business
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.

Recruiting your
first employee

since publication
}
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

It worked for me

How I
recruited
my first
employee
Kim McDowell founded Little
Stars Private Day Nursery
in August 2001. The County
60 Down-based company took on
six employees before it even
opened its doors
}I found the first round of job

interviews quite difficult just
because I had never done one
When recruiting we need to
check we don’t discriminate
against any particular group.
First steps: a planned approach
to recruitment paid off for Kim
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

Recruiting your
first employee

business plan
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

You may be worried about your additional responsibilities when you employ people. But our
step-by-step guide provides an organised and low-stress approach to building a strong relationship
with your employees and increasing your business’s chance of success
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

Understanding
employees’ rights

since publication
}
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


business plan
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

Understanding
employees’ rights
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

It worked for me

How our
corporate
values keep
our staff
motivated
Singularity Limited develops
66 and markets software solutions
that make business processes
more agile and its customers
more efficient and competitive.
As finance director John
Cowley and HR manager
Sharon Madden explain,
Singularity’s success is built
upon its corporate values, which
also enable the business to
attract and retain staff
}We employ almost 240 people

worldwide, with staff spread
over six sites from Derry to
devise values and behaviours to
help us to achieve our goals and
mission.
Shared values keep our staff
united, say Sharon and John
,
Hyderabad in India. Crucially, Both events were hugely some for more than a decade.
our corporate values help productive. After some further Salary, benefits and interesting
to unify everyone within the refinement by teams across all work aside, we believe that if
business. Our values demand sites, we agreed upon four key you engage people and create
that we remain customer- values: Customer Focus (think excitement around what
focused, innovative and have customer, act now); Innovation they’re doing, they’ll enjoy
integrity, but they’re also (create the best); Integrity (we their work and want to stay
about ensuring all of us are say, we do); and Happy Staff with you.
motivated and enjoy our work, (engage, excite, enjoy). It shows Effective ongoing
which is just as important to how much importance we place communication is vital. We
our success. on our people. also recognise the need to
In 2008, we decided it was Singularity began as a sole invest in our people. We’ve
time to refresh our corporate trader business in 1994. Although been accredited to Investors in
values, to better align them it’s grown massively, it remains a People since 1998 and we’ve
with our guiding strategy of personable organisation that dislikes just been reaccredited. Such
agility — basically, the ability to hierarchy and values its people. a framework enables us to be
change quickly and effectively. Being an independent certain we’re doing what we
The software we produce software company, with our should to train our people and
enables our customers to own product suite competing at help them to develop.
~
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

Understanding
employees’ rights

since publication
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


business plan
Next steps employee representative for related to a disability, it may

68 consultation over collective be discriminatory to refuse the
● Visit www.nibusinessinfo.co.uk/ redundancies or business request unreasonably.
annualleave transfers;
● young people studying or in Next steps
training leading to a relevant
qualification. ● See Workers with disabilities,
Time off work other page 71
In the following cases you must ● Visit www.nibusinessinfo.co.uk/
than annual leave give employees ‘reasonable’ time employingpeople
off but it can be unpaid: ● Read: Time Off For Public
There is a range of other ● Taking action to deal with Duties (ER7); Redundancy
circumstances in which an emergency involving a Entitlement — Statutory
employees will be eligible dependant — a child, husband Rights (ER3); Time Off For
for paid or unpaid time off or wife, civil partner, parent Dependants (ER24). Visit
— including acting as a safety or someone living with the www.delni.gov.uk/erbooklets
representative, going to employee (other than a
antenatal appointments and tenant, boarder or employee
dealing with an emergency of the household) or someone
involving a dependant who reasonably relies on Race, sex and age
the employee to arrange
You must allow staff time off in a care. Valid reasons for taking
discrimination
number of circumstances. time off include helping a
Pregnant employees are dependant who falls ill, is People have the right not to
entitled to paid time off to attend injured or assaulted, arranging be discriminated against on
antenatal-care appointments a dependant’s funeral, a grounds of race, sex (including
made on the advice of a dependant giving birth, dealing being married, civil partnership
registered midwife, health visitor with an unexpected breakdown and gender reassignment),
or medical practitioner. in care arrangements for a sexual orientation and age
You must give ‘reasonable’ dependant or dealing with an
paid time off to employees incident at a school attended You must not discriminate
who are: by a child of the employee. against anyone who works for
● carrying out duties or ● Taking part in certain trade you (including self-employed
receiving training as a safety union activities. contractors) or treat them less
representative; ● A range of public duties, favourably because of their:
● carrying out industrial- including membership of ● colour;
relations duties or being a district council, district ● race (including membership of
trained as an official of a policing partnership, health the Irish Traveller community);
recognised trade union; board, school governing body, ● nationality;
● carrying out duties as a statutory tribunal or prison ● ethnic or national origin;
pension scheme trustee; visiting authority. If you do not ● age;
● looking for another job or release an employee for jury ● sex (including being married,
arranging training for future service, you can be prosecuted civil partnership and gender
employment when being made for contempt of court. reassignment);
redundant; ● sexual orientation.
● carrying out duties or If you have a worker who
receiving training as an requires time off for reasons Apart from yourself, you also

Understanding
employees’ rights
}
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

}
against someone on grounds their religious belief or political
70 of age in any area of the opinions.
employment relationship, You must not recruit in a
including recruitment, pay, If you engage people and discriminatory way. You must not
working conditions, training and offer less favourable contractual
promotion.
create excitement around terms or reduced access to
There is a default retirement what they’re doing, promotion, transfers, training
age of 65. This means you can they’ll enjoy their work and and any other schemes, facilities
only set a lower retirement want to stay with you or services on these grounds.
~
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

Understanding
employees’ rights

since publication
Next steps working hours. You must not dismiss staff

on the grounds of disability 71
● See How to recruit and select The level of adjustment deemed or victimise anyone who
employees, page 58 necessary will depend on makes a complaint of disability
● Visit www.nibusinessinfo.co.uk/ circumstances including the discrimination against you.
discrimination resources available. Change
● For more information, contact might not be necessary if the Next steps
the Equality Commission: adjustment would:
028 9089 0890; ● make no significant difference ● See How to recruit and select
www.equalityni.org to the disabled person’s ability employees, page 58
● Read: Step By Step Guide To to do the job; ● Visit www.nibusinessinfo.co.uk/
Monitoring. Contact ● not be practical; disabilities
028 9089 0890; ● cost more than you could ● The Equality Commission can
www.equalityni.org afford, particularly when there provide more help and advice.
is no financial help available to Contact 028 9089 0890;
you; www.equalityni.org
● contravene other legislation, ● Read: Disability Code of
Workers with such as health and safety Practice — Employment and
rules. Occupation.
disabilities Contact 028 9089 0890;
The way you recruit staff www.equalityni.org
You must not treat staff less (including self-employed
favourably for reasons relating contractors) should not
to a disability. This applies to discriminate against people with
businesses of all sizes disabilities. Rights of part-time
You may need to make
Disability is defined as a physical reasonable adjustments to your
workers
or mental impairment which recruitment process to make
has a substantial and long-term sure people with disabilities Part-time workers are
adverse effect on a person’s are not disadvantaged in their generally entitled to the same
ability to carry out normal day- application. For example, this treatment as comparable
to-day activities. This can include may mean holding an interview full-timers — from the same
conditions such as diabetes, in a room that is accessible to hourly rates of pay to access
epilepsy and asthma. a wheelchair user, removing a to promotion opportunities,
You must be prepared to make requirement that people phone pension schemes and training
‘reasonable adjustments’ for in to discuss a vacancy or
disabled people — changes that providing special equipment or a You must not treat part-time
would assist them to work or sign-language interpreter for an workers less favourably than
continue to work for you. interview. comparable full-timers — anyone
Examples might include: You must not offer less working for the same employer
● making alterations to your favourable contractual terms doing the same or broadly
premises; — including those covering pay similar work. The rules cover
● giving some of the disabled and benefits — to staff because employees, freelances or casual
person’s duties to another they are disabled. Nor can you workers, but not the genuinely
member of staff; deny them access to promotion, self-employed. However, you
● buying special equipment; transfers, training or any other may be able to treat a part-timer
● changing the person’s schemes, facilities or services. differently from a full-timer if

It worked for me
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
}Before setting up on my own I

worked for various companies,
large and small. I was always
happiest working for those
Flexible: Paul's approach to time
off is based on mutual trust
But what that means is

to install covert CCTV systems
and people might have to work
through the night. They're happy
to do that so we feel we have to
that gave me flexible working that it’s not essential for us to give something back. Generally,
— and when I enjoyed my work, have strict working hours — it’s if he needs to people to work
I didn't need the same amount customer-driven. We know unsociable hours, he’ll give them
of money as reward. This may roughly when we can expect some hours back or they’ll work
sound very shrewd now I'm the bulk orders to come in and six unsociable hours for the
an employer, but that's an working hours can be planned same amount of pay as an eight-
obvious benefit of flexibility. around that. As long as the order hour normal day, whichever suits
You also have a duty of book is fulfilled I don't mind the best.
care as an employer. Your when the work is done. We both believe that happy
responsibility goes deeper We try to keep the phones staff are more productive. Mark’s
than just paying people's manned 8.30am to 5pm Monday just changed some of the working
wages. to Friday but I always answer it hours on his side of the business,
I’m lucky as the nature myself if necessary. There’s no as one of the team’s girlfriend
of my business lends itself need for us to be working the comes back from college for the
very well to flexible working. strict 9 to 5 when things are weekend on a Friday afternoon.
Much of our trade is sales to quieter. So long as the hours are So instead of working standard
repeat customers, many of made up I’m happy — and 100 per hours, the team member starts
whom place bulk orders once cent of the time I do see those at 8am each day and finishes at
a month. We also sell online hours coming back, plus some. 2.30pm on Fridays.
so we’ll often get orders in The installation business, And if anyone needs a bit of
overnight. which Mark runs, sometimes has time to go to the doctor or the

Understanding
employees’ rights

since publication
you can show that it is necessary ● The Labour Relations Agency

and appropriate to achieve a real can provide further help and 73
business aim. advice. Contact
Part-time workers should get 028 9032 1442; www.lra.org.uk
the same hourly rates of pay as ● Read: Part-Time Work: The Law
comparable full-timers. Overtime And Best Practice. Visit www.
rates must be the same, too — delni.gov.uk/erpublications
but legally you do not need to
pay overtime rates until they
have exceeded normal full-time
hours. Right to belong to
In addition, part-time
employees enjoy leave
a trade union
proportionate to the number of
days they work each week. So if You must not penalise workers
a full-time employee who works for joining — or refusing to join
five days a week receives 30 — a trade union
days’ annual leave, a part-timer
who works two days a week is You must not base recruitment
entitled to 12 days. decisions on whether or not
You must also treat part- a worker belongs to a trade
dentist, we’ll always allow the timers the same as full-timers union. Staff do not need your
time. Sometimes it’s straight when calculating entitlement to permission to belong to a union.
time off, or other times Mark maternity and parental leave and You cannot take any other
may be able to find work for calculating levels of sick pay and action to prevent, penalise or
someone close to where their maternity pay. deter a worker from belonging
appointment will be to make You must give them the same to a union, such as refusing to
it easier for them to get there. access as full-time workers to promote them. Nor can you
It’s not a problem because of promotion opportunities and make a worker join or stay in a
the levels of appreciation and pension schemes. union. In addition, you cannot
commitment the businesses Part-timers must not be treated dismiss or threaten to dismiss an
get in return. unfavourably if you are selecting employee for being a member of
Flexibility for both our positions for redundancy. a union.
businesses is about us being You should not exclude people If you employ 21 or more
teams. It comes under the from training because they people and refuse to recognise
umbrella of having a happy, work part-time. Where possible, a union for collective bargaining
motivated workforce – and I'd training should be organised purposes, you may be required
highly recommend it. when all staff can attend. to do so after a ballot or if
~
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

}
advice. Contact medical practitioner, midwife or
74 028 9032 1442; www.lra.org.uk health visitor.
● For more information, read: All pregnant employees are
Union Membership: Rights Of We like to think we're entitled to 26 weeks’ ordinary
Members and Non-Members maternity leave and a further
(ER31). Visit
approachable. People 26 weeks' additional maternity
www.delni.gov.uk/er31 need to feel they can tell leave immediately after that,
● The Industrial Court adjudicates you that they're having a regardless of how long they have
on applications relating to rough time and need to been working for you.
statutory recognition of trade take some time off Many women will be entitled
unions. Visit to receive 39 weeks’ statutory
~
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

Understanding
employees’ rights

business plan
employment remained in place recover 100 per cent of statutory

75
during additional maternity Pay on maternity pay plus an additional
leave. 4.5 per cent.
You must allow a woman to
maternity leave If your National Insurance
return to her old job after taking contributions are above £45,000
ordinary maternity leave. If she Many pregnant women have you can recover 92 per cent of
takes additional maternity leave the right to receive a minimum the payments you make.
you can offer her a similar job level of pay during their You must record maternity
instead, if it is not reasonably ordinary maternity leave. You payments in the relevant
practical to allow her to return to can claim all or most of it back sections of your P11, P14 and
her old job. from HM Revenue & Customs P35 tax forms (see Next steps
If her job becomes redundant below).
during the maternity leave, Pregnant women and those who You can also use form SMP2
you must offer any suitable have just given birth are entitled to keep a record of statutory
alternative work available. to receive 39 weeks of statutory maternity payments if you
You must also seriously maternity pay during their wish. This is available from
consider a returning employee's maternity leave if they: HM Revenue & Customs.
request for flexible working. ● have worked for you for a All records must be kept for
Refusal to offer such an option continuous period of at least three years.
may amount to indirect sex 26 weeks by the end of the
discrimination. 15th week before the week the Next steps
If there is an unavoidable baby is due; and
health or safety risk to a new ● earn more than the lower ● Visit www.nibusinessinfo.co.uk/
or expectant mother or her earnings limit for National maternity
baby, and you cannot find other Insurance contributions (£95 ● Read: Pregnancy And Work:
suitable work for her, you must for the 2009–10 tax year). What You Need To Know As An
suspend her on full pay. Employer. Visit www.delni.gov.
It is illegal for new mothers to The rate of SMP for the first uk/workandfamilies
return to work within two weeks six weeks is 90 per cent of ● For further information
of giving birth (four weeks for the woman’s average weekly contact the HM Revenue
factory workers). earnings. For the remaining 33 & Customs Employers’
weeks, SMP is either £123.06 per Helpline: 08457 143 143;
Next steps week (2009-10) or 90 per cent www.hmrc.gov.uk/paye
of the woman's average weekly ● To use an online calculator for
● Visit www.nibusinessinfo.co.uk/ earnings, whichever is the lower. maternity pay, visit
maternity Statutory maternity pay www.hmrc.gov.uk/calcs/
● For more information, read: is subject to income tax and smp.htm
Maternity Rights — A Guide National Insurance contributions
For Employers And Employees in the same way as normal pay.
(ER16); Suspension From Employers recover statutory
Work On Medical Or Maternity maternity pay from the income
Grounds (ER10). Visit tax and National Insurance
www.delni.gov.uk/erbooklets contributions they pay to
● The Labour Relations Agency HM Revenue & Customs.
advises on maternity leave and If your business’s total annual
pay. Contact 028 9032 1442; National Insurance contributions
www.lra.org.uk are £45,000 or less, you can


since publication
evidence of their entitlement to claim back all statutory paternity

76
Paid paternity leave statutory paternity pay. You can pay plus a compensation
use HM Revenue & Customs form payment of 4.5 per cent on top.
Becoming A Parent (SC3). Otherwise, you can claim 92 per
Working fathers and partners Eligible employees can take a cent of the payments you make.
can take up to two weeks’ block of either one or two whole You should record paternity
leave following the birth of a weeks’ leave — but not odd days. payments in the relevant
baby. While off work they are Leave must be taken within 56 sections of the P11, P14 and
entitled to a minimum level of days of the child’s birth or, if the P35 tax forms available from
statutory paternity pay child is born early, in the period the HM Revenue & Customs; a
from the actual date of birth number of explanatory booklets
To qualify for statutory paternity until 56 days after the expected are also available. All records
leave, an employee must: week of birth. With adoption, must be kept for three years.
● have or expect to have a paternity leave must be taken
responsibility for the child’s within 56 days of the child’s Next steps
upbringing; placement.
● be the child’s father or the Employees have the right ● Visit www.nibusinessinfo.co.uk/
mother’s husband, civil to return to the same job after paternity
partner or partner; taking paternity leave. You must ● The Labour Relations Agency
● have worked continuously not dismiss an employee or treat can offer advice.
for you for at least 26 weeks them unfairly because they have Contact 028 9032 1442
by the end of the 15th week taken paternity leave. ● For more information, read:
before the week the baby They are entitled to keep their Rights To Paternity Leave And
was due and have continued normal terms and conditions Pay (ER34). Visit
working for you until the birth. of employment — except those www.delni.gov.uk/er34
relating to wages or salary Pay And Time Off Work For
Paternity leave is also available — while taking paternity leave. Parents (E15);
to adoptive parents — to one Most are also entitled to Statutory Paternity Pay
person in a couple adopting statutory paternity pay. The rate Record Sheet (SPP2);
jointly or to the partner of an is £123.06 per week (2009-10) Becoming A Parent: Self-
individual adopter. or 90 per cent of the employee’s Certificate (SC3). Contact
The adoptive parent taking average weekly earnings, 0845 7 646 646;
paternity leave must have whichever is the lower — though www.hmrc.gov.uk/paye
worked for you for at least 26 you can pay more than this if ● Further information is
weeks at the time they were you wish. available from the HM Revenue
matched with a child and Staff who earn less than the & Customs Employers’
continued to work for you since. lower earnings limit for National Helpline. Contact
It is not the case that only Insurance contributions do not 08457 143 143
men can take paternity leave. qualify for statutory paternity pay. ● HM Revenue & Customs
In some instances a woman will You can recover statutory Employer Orderline provides
be entitled — for example, if she paternity pay from the income all relevant forms. Contact
is the civil partner of a woman tax and National Insurance 0845 7 646 646;
who has given birth, or if she is contributions you pay to www.hmrc.gov.uk/paye
adopting jointly and her husband HM Revenue & Customs. ● To use an online calculator for
or partner takes adoption leave. If your business’s total annual paternity pay, visit
You can ask an employee to National Insurance contributions www.hmrc.gov.uk/calcs/
fill in a self-certificating form as are £45,000 or less, you can stat-calcs.htm

Understanding
employees’ rights
}
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

}
cent of the payments you make.
78 You must record statutory Unpaid leave for
adoption pay in the relevant
sections of your P11, P14 and
parents
A more mature employee
P35 forms available from HM
Revenue & Customs; a number
may have family Parents can take extra, unpaid
of explanatory booklets are also commitments and need time off during the first few
available (see Next steps below). flexibility, but they can years of their children’s lives.
All records must be kept for be very trustworthy, Generally, you agree with your
three years. responsible and reliable employee how this parental
Paternity leave can also be leave is to be taken
~
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

Understanding
employees’ rights

business plan
there is no agreement. Under You are required to consider Next steps

this, up to four weeks’ leave can seriously any requests for 79
be taken in one year, in blocks of flexible working patterns that ● Visit www.nibusinessinfo.co.uk/
one week or more at a time. you receive from: flexiblework
You can postpone parental ● parents of children under six ● For more information read:
leave if you think an employee’s or of disabled children under Flexible Working: A Guide For
absence would cause too much 18; Employers And Employees
disruption for your business ● carers of adults — the carer (ER36). Contact
— perhaps at a seasonal peak must be the spouse, partner, www.delni.gov.uk/er36
or when an employee’s skills civil partner or a near relative ● See Workers with disabilities,
are essential to the business of the adult in question, or page 71
at a particular time. You must must live at the same address
discuss the postponement with as them.
the employee and give them
written notice. The leave can be In order to make a request for
postponed for a maximum of six flexible working, an employee
months. must have worked continuously
for you for at least 26 weeks. If
Next steps you have a clear business reason
why the work pattern cannot be
● Visit www.nibusinessinfo.co.uk/ accommodated, you may refuse
parentalleave the request.
● The Labour Relations Agency Flexible working covers a wide
can offer advice on your range of working patterns, such
employees’ entitlement to as annualised hours, flexitime,
unpaid parental leave. job-sharing, shift-working and
Contact 028 9032 1442; term-time working. Or it might
www.lra.org.uk simply involve an employee
● For more information about starting half an hour later and
parental leave, read: making up the time later in the
Parental Leave: A Guide For day.
Employers And Employees Employees have to make
(ER25). Contact a written application to work
www.delni.gov.uk/er25 flexibly. You are required to meet
them within 28 days to discuss
their request.
You then have 14 days to write
Employees and to the employee with your decision.
Staff have a further 14 days to
flexible working appeal if they disagree with it.
If a disabled person needs to
Parents and carers of adults work different hours for a reason
may request flexible working related to their disability — for
patterns. In many cases you example to avoid using public
must consider their request transport during rush hour — it
seriously and provide a clear may be discriminatory if you
business reason if you refuse it refuse this.

All businesses need a framework for both employees’ and employers’ conduct and procedures for
handling disciplinary, grievance and dismissal issues. Here’s the way to go about it
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

Resolving problems
with employees

since publication
}
● 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’


business plan
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

Resolving problems
with employees
}
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.


since publication
}
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,

Resolving problems
with employees
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

It worked for me

How I
maintain
good staff
conduct
Formed in 1954,
Toomebridge-based McCauley
Trailers Ltd has grown to
86 become a market-leading
manufacturer of agricultural
and commercial trailers. As
operations manager Jonathan
Hanna reveals, thankfully
staff misconduct isn’t a major
issue for the company, but
that is a result of effective
management and a highly
motivated workforce
}Staff misconduct can

severely damage a business.
Unnecessary absence and poor
right so we worked with Invest
Northern Ireland to draw up
rules for our employees, which
Communicating: Jonathan saw
the value of a staff handbook
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

Resolving problems
with employees

business plan
}
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


since publication
}
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

Resolving problems
with employees
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

There is a wide range of help for new and developing businesses in Northern Ireland — ranging
from professional advice and training to grants and other forms of financial help
Government advice and

support for your business
Growth programme: once you for it and Growth programmes
90
Your first steps when have established your new mentioned above.
business, have reached VAT
starting a business turnover and are ready to start Other organisations: there is a
thinking about expanding, the wide range of other bodies that
If you are thinking of starting Growth programme is there to may be able to help you. These
a business in Northern help you. It will give you access include:
Ireland, there are a number of to a wide range of experts who ● your district council;
programmes and organisations will help you identify and fill any ● Northern Ireland Chamber of
in place to help you turn gaps in your skills or experience Commerce and Industry;
your business idea into a real that may be holding you back. ● for businesses in rural areas,
business This kind of targeted support can the Department of Agriculture
make all the difference to your and Rural Development (DARD);
Go for it: the Go for it competitiveness. ● InterTradeIreland, which
programme is at the heart promotes access to finance,
of the support and advisory Support for young people: business development and
services for start-up businesses starting your own business can increased trade links with the
in Northern Ireland. It is provided be both financially rewarding Republic of Ireland;
by Invest NI, but delivered on the and hugely satisfying. If you ● a variety of networks
ground by our partners. are aged 30 or under, you can supporting women in business;
If you are an aspiring benefit from a range of support ● the Ulster Community
entrepreneur with a business especially developed for young Investment Trust, which
idea you would like to develop, entrepreneurs. This is provided provides loans and support to
the Go for it programme can by our youth enterprise partners, community enterprises.
team you up with a personal Advantage NI and The Prince’s
business adviser and provide you Trust. Next steps
with a tailored support package Advantage NI offers support
that will help you think about, and advice to anyone aged ● Contact the Go for it
plan and launch your business. between 16 and 30 looking programme: 0800 027 0639;
Specialist support is to start up and develop their www.goforitni.com
also available for female own business. The Prince's ● Contact the Growth
entrepreneurs, minority Trust is a charity providing programme: 0800 223 0266;
communities and community training, mentoring and financial www.growthni.com
enterprises. assistance to people aged ● See Female entrepreneurship,
between 14 and 30 to help them page 94
Online advice: the start their own business. ● Enterprise Northern Ireland.
www.nibusinessinfo.co.uk website Contact 028 7776 3555;
provides you with more than Enterprise Northern Ireland www.enterpriseni.com
5,000 pages of constantly (ENI): a network of 32 ● Prince’s Trust NI. Contact:
updated guidance, as well as enterprise agencies which 028 9074 5454;
all the links, helplines and tools support businesses with a local- www.princes-trust.org.uk
you’ll need to succeed. It is a market focus and community ● Advantage NI. Contact:
fast track to business success, enterprises. Enterprise Northern 028 9335 6730;
offering all the information, Ireland offers business advice, www.advantage-ni.com
advice and support needed by information and financial support. ● NI Chamber of Commerce and
Northern Ireland businesses. It delivers a number of Invest NI’s Industry. Contact
programmes, including the Go 028 9024 4113; www.nicci.co.uk


general business advice – from
business plan
}
● 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


since publication
}
Next steps
92
Raising finance for
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

HALO initiative helps connect

93
entrepreneurs with business Tax relief and credits Training for you and
angels (see Next steps below).
InterTradeIreland’s Equity
to help research and your workforce
Network helps businesses development
identify potential sources of A range of training help is
finance, including venture capital Tax relief and credits are available for people setting
firms and business angels. available to small and medium- up and running their own
Members of the British Private sized companies to encourage businesses
Equity and Venture Capital investment in research and
Association invest in unquoted development Invest NI supports training
businesses, from start-ups and and development with a
expanding businesses with growth When you are working out wide range of programmes
potential to management buy-outs. your company's profits for tax and services, including the
The Irish Venture Capital purposes you can deduct 175 Business Improvement Training
Association represents venture per cent of qualifying research Programme. Support includes
capital firms in Northern Ireland and development spending. practical advice and guidance
and the Republic of Ireland. This is called R&D (research and as well as contributions toward
Northern Ireland Spin-Out development) tax relief. the costs of course fees, training
(NISPO) Funds provide a range If your company is not in materials and salaries.
of support for early-stage profit or if its profits are less The Department for
technology companies, including than the R&D tax relief to which Employment and Learning
venture capital and a proof-of- you are entitled, you can claim (DEL) runs a training support
concept grant. a payment worth up to 14 per programme called the Bridge
cent of your company's losses to Employment. This provides
Next steps due to spending on research customised training courses
and development. This is called built around the skill needs of
● Visit www.nibusinessinfo.co.uk/ the payable R&D tax credit and participating businesses.
equityfinance the payment is made to you by Learndirect for Business
● Halo matches entrepreneurs HM Revenue & Customs. can help you gain skills to deal
and private investors. Contact A company can claim R&D tax with the day-to-day issues that
www.haloni.com relief and the payable R&D tax confront your business.
● Contact InterTradeIreland’s credit even though it has not Steps to Work is a programme
Equity Network: 028 3083 started to trade for tax purposes. that provides free training, work
4100; Check with your accountant if experience and opportunities to
www.intertradeireland.com you think you might benefit from gain qualifications. It is available
● Contact the British Private this option. to anyone aged 18 or over who is
Equity and Venture Capital receiving certain benefits or who
Association: 020 7420 1800; Next steps is not working and not receiving
www.bvca.co.uk benefits.
● Contact the Irish Venture ● Visit www.nibusinessinfo.co.uk/ Pathways to Work helps
Capital Association: rdtaxrelief people with health conditions
00 353 1 276 4647; ● To find out more about R&D and disabilities to consider their
www.ivca.ie tax relief and credits, contact options for returning to work.
● Contact Northern Ireland Spin- your HM Revenue & Customs Participants are allocated a
Out Funds: office or specially trained advisor to help
www.nispofunds.com www.hmrc.gov.uk/randd them decide on the steps to take.

94
A boost for To help remove barriers to
enterprise in disadvantaged
Northern Ireland is available
on the HM Revenue & Customs
business in communities, measures website: www.hmrc.gov.uk/so/
Enterprise have been introduced to
support businesses and
dar/nireland.pdf
However, wherever you are
Areas boost investment in specially located you should check with
designated Enterprise Areas Invest NI whether your business
across Northern Ireland. You is eligible for one of the schemes
may be able to obtain loan outlined below, as some help
finance from a community is not exclusive to businesses
lender, or business support based in Enterprise Areas.
from HM Revenue & Customs If you are in an Enterprise
Area, you may benefit from one
The first thing you need to do is of several new or existing forms
to check whether your intended of assistance:
or existing business is in an
Enterprise Area. A list of the ● Help from a Community
Enterprise Areas located across Development Finance
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


business plan
Institution (CDFI). CDFIs ● A targeted package of existing business is in an 95

provide mainly loan finance support for employers from Enterprise Area. Contact:
to small and medium-sized HM Revenue & Customs. A www.hmrc.gov.uk/so/dar/
enterprises, in disadvantaged wide range of help is available nireland.pdf
communities, which cannot from HM Revenue & Customs ● To find the contact details
access mainstream finance advice teams, including of your nearest HM Revenue
to meet their needs. The assistance on tax and National & Customs Office, contact:
Government is encouraging Insurance matters. www.hmrc.gov.uk/enq/
private investors to invest in Contact 028 9053 2755; nireland.htm
CDFIs through the Community www.hmrc.gov.uk/bst
Investment Tax Relief. To
find out whether there is a Next steps
CDFI in your area, contact
the Community Development ● Before seeking Enterprise
Finance Association: Area help and contacting
020 7430 0222; the organisations above,
www.cdfa.org.uk check whether your new or
encourage women entrepreneurs Invest NI’s Passport to Export

to grow and develop their Programmes offer targeted Help from your
business by: support for first-time exporters,
● facilitating peer learning, as well as helping existing
council
shared experience and exporters to expand their
learning from female role overseas markets. Invest NI can Local councils also provide
models; also help you access the support support for people setting up
● improving productivity in services offered by UK Trade & in business, and for people
participating businesses. Investment, the Government’s wanting to expand their
export agency. These include an business
Next steps online tool to help you assess
whether you are ready for Help from your district council
● Visit www.nibusinessinfo.co.uk/ exporting. includes support from their
womenentrepreneurs Economic Development
● For more information contact Next steps Departments and advice
Invest NI: 028 9023 9090; on environmental health
www.investni.com ● Visit www.nibusinessinfo.co.uk/ regulations.
internationaltrade
● Invest NI can provide further Next steps
advice on exporting. Contact
Help with exporting 028 9023 9090; ● To find out your local
www.investni.com/export council contact details, go to
● For more information from UK www.direct.gov.uk and use
There is a range of help if you Trade & Investment, contact the A-Z search of local
are planning to export products 020 7215 8000; government
or services www.uktradeinvest.gov.uk

Useful contacts
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
Fifth Floor, Forming a business

Bedford Square
Bedford Street 100-114 Timber Quay
Strand Road, Londonderry Companies House: to form a
Belfast BT2 7ES limited company.
Co Londonderry, BT48 7NR
Contact 028 7126 7257; Contact 0303 1234 500;
Contact 028 9023 9090; www.companieshouse.gov.uk
www.investni.com; nwo@investni.com
www.nibusinessinfo.co.uk; UK Intellectual Property
email info@investni.com Science Innovation Centre
Cromore Road Office: to check for registered
Coleraine BT52 1ST trademarks that conflict with
Contact 028 7028 0055; your business name.
nwo@investni.com Visit www.ipo.gov.uk

Useful contacts
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

Department for Employment
98
Trading standards Employment rules and Learning (DEL): infomation
about the Bridge to Employment
and payment scheme. Contact
Department for Employment and
Learning: extensive information 028 9044 1880;
Trading Standards Service: www.delni.gov.uk/bte
information about consumer- on employment rules and
protection and other trading regulations. Visit
www.delni.gov.uk/erbooklets College of Agriculture, Food
regulations. Contact and Rural Enterprise (CAFRE):
028 9025 3900; courses for agricultural
www.detini.gov.uk/ Labour Relations Agency (LRA):
information and publications on businesses, including farmers
deti-consumer-index starting new on-farm enterprises.
employment issues. Contact
028 9032 1442; www.lra.org.uk Contact 0800 028 4291;
Office of Fair Trading: to apply www.cafre.ac.uk
for a consumer credit licence.
Contact 08457 22 44 99; UK Border Agency: how to check
www.oft.gov.uk; email someone is entitled to work in
enquiries@oft.gsi.gov.uk the UK. Contact 0300 123 4699;
www.ukba.homeoffice.gov.uk Pension advice
Better Payment Practice Group:
advice on getting paid on time. Industrial and Fair Employment The Pensions Regulator:
Visit www.payontime.co.uk Tribunals: details of what to do if stakeholder pension information.
you’re taken to a tribunal. Contact 0870 606 3636;
Contact 028 9032 7666; www.thepensionsregulator.gov.uk
www.employmenttribunalsni.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

Useful contacts
British Private Equity and Disablement Advisory Service:

99
Venture Capital Association. Legal help practical support including
Contact 020 7420 1800; funding for people with
www.bvca.co.uk Law Society for Northern Ireland. disabilities when setting up a
Contact 028 9023 1614; business. Contact
Irish Venture Capital Association. www.lawsoc-ni.org 028 9025 2085;
Contact 00 353 1 276 4647; www.delni.gov.uk/das
www.ivca.ie
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
Association of Chartered Federation of Small Businesses.

Certified Accountants: to find a Contact 028 2766 6090;
chartered accountant. Contact www.fsb.org.uk
020 7059 5000;
www.accaglobal.com Institute of Directors. Contact
028 9023 2880; www.iod.com
The Chartered Institute of
Management Accountants. Investors in People. Contact
Contact 020 8849 2251; 028 9044 1794;
www.cimaglobal.com www.investorsinpeople.co.uk
Councils and local authorities. To

find your local council, visit
www.direct.gov.uk
Part-funded by the European
Regional Development Fund

2010 NI edition
Bedford Square
Bedford Street
Belfast BT2 7ES
T: 028 9023 9090
F: 028 9043 6536
W: www.investni.com

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The

The Guide is brought to you by Invest

Invest NI and its enterprise partners can

If you are thinking of starting a business,

This guidance is issued to provide users with general background,

If you require this brochure in an alternative format (including

Invest NI’s Equality Team

Provided by Invest Northern Ireland and part financed by the

© Crown Copyright. January 2010.

The No-Nonsense Guide The No-Nonsense Guide

The No-Nonsense Guide

Check for changes in the law

Regulations, figures and sums

The No-Nonsense Guide

}While I was at university, I

The No-Nonsense Guide

You also need business advice

Aaron McCracken/Harrison Photography

business and any financial Companies House annual

The No-Nonsense Guide

The No-Nonsense Guide

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Regulations, figures and sums

● For more information on You buy a licence from an form.

The No-Nonsense Guide

Sorting out your tax

The No-Nonsense Guide

Check for changes in the law

Regulations, figures and sums

National Insurance contributions (2009–10 tax year)

Class 2 contributions £2.40 a week

Class 4 contributions 8% of your annual profit between £5,715 and

Income tax (2009-10 tax year)

Basic personal allowance  £6,475

Tax rates on income above personal allowance

Basic rate £0–£37,400 20%

Higher rate More than £37,400 40%

The No-Nonsense Guide

This guide covers regulations.

You also have to make year are liable to corporation tax:

Basic rate £0–£37,400 20%

Higher rate More than £37,400 40%

The No-Nonsense Guide

The No-Nonsense Guide

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}The business very much

The No-Nonsense Guide

Check for changes in the law

Regulations, figures and sums

The No-Nonsense Guide

The No-Nonsense Guide

Check for changes in the law

Regulations, figures and sums

end of tax year, page 20

due within nine calendar months ● Visit www.nibusinessinfo.co.uk/

The No-Nonsense Guide

The No-Nonsense Guide

Check for changes in the law

Regulations, figures and sums

The No-Nonsense Guide

Regulations, figures and sums

The No-Nonsense Guide

Basic personal allowance £6,475

Basic rate £0–£37,400 20%

Higher rate More than £37,400 40%

Basic rate £0–£37,400 20%

Higher rate More than £37,400 40%