Tag Archive for Small Business Legal Issues

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Should I go sole trader, partnership or limited company?

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By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs
You’ve finally mustered up the courage to wave goodbye to your boss and are now going solo. Surely you didn’t think this would be easy, did you?
As a matter of fact, many who have made the same choice know that this is just the beginning.
This is the time for a series of decisions to be made. You can take comfort in the fact that once your company formation is in place, each step along the way will be easier.
A key decision to be made when starting your own business, or becoming self-employed for the first time, is to decide what type of business structure you want to follow.
There are a number of options, all of which have their merits and differ in legal and taxation terms – but your four key options are as follows:

Sole trader
Partnership
Limited liability partnership (LLP)
Limited company

Simon Renshaw, director of AABRS, explains what you need to know about each.
On your own as a sole trader
By opting for the sole trader route, you and your business are effectively one and the same – from both a tax and legal perspective.
This means that you

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Are purchase orders legally binding?

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Originally written by Paul Barnes on Small Business
Understanding the legal implications of purchase orders is important. After all, if faced with a client refusing to pay an invoice, or you receive an invoice for twice the amount stated on a purchase order (PO), you need to understand your position.
So, is a PO legally binding? And above and beyond the legal ramifications, are there other advantages to raising POs? Here, Paul Barnes, MD of MAP, an outsourced finance function for digital creative agencies, provides his purchase order insights.
Purchase orders are a legal contract
If you issue or receive a PO, it’s a legally binding document once accepted. In essence, it’s a contract between the buyer and the seller. As a supplier, if you raise a PO and send it to your customer, this is notifying them of their legal obligations to pay you the agreed amount. As a customer, you need to be aware that when you receive a PO, this is obliging you to pay the amount on the purchase order. If the amount is incorrect, this must be disputed immediately and a new PO issued. Failure to dispute a PO at the time of issuing will place you in a

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Hot Business News Today

Are purchase orders legally binding?

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Originally written by Paul Barnes on Small Business
Understanding the legal implications of purchase orders is important. After all, if faced with a client refusing to pay an invoice, or you receive an invoice for twice the amount stated on a purchase order (PO), you need to understand your position.
So, is a PO legally binding? And above and beyond the legal ramifications, are there other advantages to raising POs? Here, Paul Barnes, MD of MAP, an outsourced finance function for digital creative agencies, provides his purchase order insights.
Purchase orders are a legal contract
If you issue or receive a PO, it’s a legally binding document once accepted. In essence, it’s a contract between the buyer and the seller. As a supplier, if you raise a PO and send it to your customer, this is notifying them of their legal obligations to pay you the agreed amount. As a customer, you need to be aware that when you receive a PO, this is obliging you to pay the amount on the purchase order. If the amount is incorrect, this must be disputed immediately and a new PO issued. Failure to dispute a PO at the time of issuing will place you in a

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Do I need to pay employee for travelling time?

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Originally written by Amy Paxton on Small Business
Your employee is confusing travelling time during work with travelling time to and from work. There is no right to be paid for time spent travelling to and from work unless this is specifically set out within the contract. The only time you would normally look at making a payment or some contribution towards travel to and from work is if you require your employee to work at a different location from usual.
The obligation on an employer is to pay an employee in respect of their actions in carrying out their work. This doesn’t include covering the costs of getting to and from work unless you have specifically agreed to do so. Any travelling you require for work, such as visiting a customer within the employee’s working hours, is time spent carrying out work under the contract and so counts towards the time the employee should be paid for but the time spent getting to work and back is his choice and responsibility, not yours. Ensuring that time spent travelling is counted towards working hours is particularly important if the employee is paid at, or very near, to the national minimum wage rate

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Hot Business News Today

Do I need to pay employee for travelling time?

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Originally written by Amy Paxton on Small Business
Your employee is confusing travelling time during work with travelling time to and from work. There is no right to be paid for time spent travelling to and from work unless this is specifically set out within the contract. The only time you would normally look at making a payment or some contribution towards travel to and from work is if you require your employee to work at a different location from usual.
The obligation on an employer is to pay an employee in respect of their actions in carrying out their work. This doesn’t include covering the costs of getting to and from work unless you have specifically agreed to do so. Any travelling you require for work, such as visiting a customer within the employee’s working hours, is time spent carrying out work under the contract and so counts towards the time the employee should be paid for but the time spent getting to work and back is his choice and responsibility, not yours. Ensuring that time spent travelling is counted towards working hours is particularly important if the employee is paid at, or very near, to the national minimum wage rate

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Getting ready for Brexit – 6 steps you need to take to prepare

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Originally written by sarahgunton on Small Business
6 steps to getting ready for Brexit
Here, we guide you through the six steps companies should be looking at if they’re getting ready for Brexit with detailed advice as to how firms can best prepare.
#1 – Tax, tariffs and customers
From January 1 2021, an Economic Operators Registration and Identification (EORI) number is required to move goods into or out of the EU. Register for an EORI number here. All goods imported to the UK will also be subject to UK Global Tariffs from 2021. As a business owner you check what these will be here.
 >See also: EORI number: What it is and how to get or check one
If the UK leaves the EU without a deal, there will be new tariffs on many goods and services that are exported from the UK to the EU. Even if a deal is agreed, there may still be tariffs to pay on some traded items. Those goods that we export to the rest of the world that are currently subject to EU-negotiated tariffs will be subject to new duty rules too, many of which have yet to be agreed.
Getting ready for Brexit

Monitor announcements about new foreign tariffs

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Getting ready for Brexit – 6 steps you need to take to prepare

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Originally written by sarahgunton on Small Business
6 steps to getting ready for Brexit
Here, we guide you through the six steps companies should be looking at if they’re getting ready for Brexit with detailed advice as to how firms can best prepare.
#1 – Tax, tariffs and customers
From January 1 2021, an Economic Operators Registration and Identification (EORI) number is required to move goods into or out of the EU. Register for an EORI number here. All goods imported to the UK will also be subject to UK Global Tariffs from 2021. As a business owner you check what these will be here.
 >See also: EORI number: What it is and how to get or check one
If the UK leaves the EU without a deal, there will be new tariffs on many goods and services that are exported from the UK to the EU. Even if a deal is agreed, there may still be tariffs to pay on some traded items. Those goods that we export to the rest of the world that are currently subject to EU-negotiated tariffs will be subject to new duty rules too, many of which have yet to be agreed.
Getting ready for Brexit

Monitor announcements about new foreign tariffs

Read more...

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Pivoting to an online business – 8 legal mistakes to avoid

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Originally written by Marion Kennedy on Small Business
Many small businesses are pivoting to an online business to stay relevant and retain customers during the Covid-19 lockdown.
Having a strong presence online will of course continue to be useful after the lockdown restrictions are lifted, as it builds brand awareness and improves accessibility for customers.
However, when pivoting to an online business, there are a number of legal mistakes to avoid.
>See also: What’s the best website builder for my small business?
In a recent news story, Joe Wicks, aka The Body Coach, had trouble trying to use copyrighted music for his online fitness classes. Like Joe, if you are setting up online you will need to take care not to use copyrighted material online like music, pictures or writing, without permission. This is just one example of a legal issue that might arise when you are pivoting to an online business – read on to avoid eight common legal mistakes.
#1 – Not making the most of your website build
Various online website builders are available that let you create and run your website yourself. Alternatively, you could commission a bespoke website from a website designer, if your budget allows. To help ensure your website is

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Does my small business require a licence?

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Originally written by Anna Jordan on Small Business
Before you even start trading, it’s essential that you get your business licence applications in place.
Most firms will need a licence of some kind – in fact, some may need several. They include the ones you expect like an alcohol licence… but then you’ve got the more obscure ones like putting chairs and tables on the pavement.
We’ll help you establish just what licences you need for your small business.
Which types of businesses need a licence?
Anywhere that sells liquor will need an alcohol licence and if you’re in a building, you’ll need a premises licence too.
You will definitely need a licence if your business is involved in the following areas:

Childcare
Dog breeding
Ear piercing
Gambling services
Taxi driver
Fitness coach/personal trainer
Pet shop owner
Credit and financial services
Security guard
Goods hauling (HGV)
Import and export
Food businesses
Tattoo parlour

Let’s take a couple of examples to see how it all adds up.
Beauty salon
The first thing to check is the media that’s playing within your salon, whether that be a TV licence or a licence to play music. After that, apply for a CCTV licence, a pavement or street display licence and a premises licence – that’s if you intend to give your clients a glass of

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