Frequently asked questions
There are a variety of legal structures available for your business, ranging from sole trader to partnership, limited company or PLC. The question as to what is right for you will depend on a number of factors, including the type of business, tax planning issues, and how the owners of and workers in the business are to be remunerated.
You will need to register for VAT if you expect your turnover to exceed £70,000 during the next month or once your turnover exceeds £70,000 in a 12-month period. You may also want to register for VAT even though your sales do not exceed the threshold. For example, if a significant part of your sales are "zero-rated" or "reduced rate" for VAT purposes, then if you register for VAT you may be able to claim a refund of some or all of the VAT you pay on inputs.
If your business has employees, it is required to have employer liability insurance. In addition, many businesses also carry public liability insurance -- since most businesses, one way or another, interact with the public. Depending on the nature of your business, you may need motor insurance, product liability insurance and/or special types of risk cover such as professional indemnity insurance or performance bonds.
Employers must use the PAYE ('pay as you earn') system to deduct taxes from their employees' earnings and remit them to HMRC. Nearly all businesses are required to make such deductions. You are also required to pay a separate employer's National Insurance contribution. The amounts that you are required to deduct depend on each individual employee's tax coding. Many businesses choose to out-source their payroll accounting, but some do their own. For people who run small businesses and want to handle their own payroll, HMRC offers free assistance.
Yes, all businesses need to prioritise health and safety. If your business is labour-intensive, and especially if it involves physical labour and/or transportation services, it will likely present a range of health and safety issues and may be subject to inspections to ensure regulatory compliance. You will need to determine how you will ensure compliance, and how much it will cost the business to do so.
Although most people try to avoid lawsuits and prefer not to breach contracts, there are times when people find it necessary to take a contract dispute to court. This article provides a basic overview of the law relating to breaches of contract and the remedies for breach of contract.
- School Holiday Fine Proceedings
- Enhanced redundancy issue
- How can I apply for a Stay in Proceedings Please?
- Advice needed
- Which service to go for Tier 2 General visa?? (Premium/Priority/Postal)
- Compulsory Purchase Orders
- Mistake in salary on contract of employment
- Bromborough paints / Crown paint defective paint and they dont seem to care
- 35 hrs to 25
- Charges in lease
- Wrongly posted in 'Uncategorized' section?
- Police crime ref no: - ?
- Freeholder & leaseholder the same person - problem with mortgage
- declare caution for tier 2 visa?
International: man arrested in New York accused of being a Russian spy
A Russian man has been arrested by the FBI on charges of attempting to gather intelligence on behalf of Russia and trying to recruit Americans into their spy network, reports the Huffington Post. Evgeny Buryakov, 39, is said to have...
Property law: Pubs considered important to communities to be legally protected
New Government proposals could see preferred English pubs legally preserved unless planning applications are made, The Guardian reports. Under new Government proposals, English public houses that make it onto a list of pubs considered to be important to communities will...
Medical law: Scottish assisted suicide law 'needs tougher safeguards'
The medical profession says the Scottish assisted suicide law must be more robust to protect doctors and patients alike, the BBC reports. Giving evidence to Members of the Scottish Parliament (MSPs) on Holyrood's health committee, doctors specialising in palliative care...
Privacy: European report says mass surveillance endangers 'fundamental human rights'
The Parliamentary Assembly of the Council of Europe says mass surveillance threatens human rights, endangers lives and consumes anti-terrorist resources, The Guardian reports. The leading human rights body in Europe says that mass surveillance techniques represent a threat to "fundamental...
Property law: Law lords consider challenge to £1m chalet lease
The Supreme Court is to hear an appeal concerning chalet charges that could increase to over £1m, the BBC reports. A property case, which will leave holiday chalet owners with charges exceeding £1m in the final year of their lease...
Discrimination: Jewish leaders lobby for Europe-wide anti-Semitism law
Jewish leadership mobilises itself to call for pan-European legislation outlawing anti-Semitism, The Guardian reports. With support from former heads of State and Government, European Jewish leaders are lobbying for Europe-wide legislation to make anti-Semitism illegal. During a three-year consultation, four...
Prisons: Prisoners caught taking 'legal highs' face new punishment
Concern about "legal high" drugs fuelling prison violence has led to a crackdown being launched this week, Sky News reports. New Government plans will see prisoners who are caught taking "legal high" drugs face tougher penalties. Punishments will include prisoners...
International: Ousted Thai prime minister banned from domestic politics
Yingluck Shinawatra, the former prime minister of Thailand, has been banned from politics and may face a criminal conviction, reports the Guardian. Ms Shinawatra has been banned from politics for five years by the current military government, led by General...
Smoking: Tobacco firms criticise new law banning cigarette packet branding
Tobacco companies denounce proposed legislation mandating plain packaging for cigarettes, the BBC reports. The tobacco industry has come out in force to oppose Government proposals to introduce standardised plain packaging for cigarettes. According to the Tobacco Manufacturers Association, plans for...
Trademark law: Rihanna triumphs in legal battle with Topshop over 'image rights'
Court of Appeal upholds a ban on Topshop selling Rihanna t-shirts without her permission, The Daily Telegraph reports. Pop singer, Rihanna, 26, has emerged victorious in a legal battle with UK high street store, Topshop, over a t-shirt bearing the...
Criminal law: Child abuse inquiry in trouble over claims of intimidation
The child abuse enquiry connected to claims of paedophiles operating in Westminster in the 1980s has run into trouble over claims those giving evidence are being bullied, reports the Telegraph. The claim of bullying and intimidation comes from Ms Sharon...
Property law: MPs demand review of manorial rights from feudal area
MPs insist the Law Commission should conduct a review to assess whether manorial rights law should be changed, The Guardian reports. MPs have hinted that exercising ancient manorial rights in Britain could soon be made illegal. Potentially, this means that...
Discrimination: Communities Secretary discriminated against Gypsies and Travellers in 'green belt' applications
The High Court has ruled that the Communities Secretary, Eric Pickles, breached equality and human rights laws by subjecting Romany Gypsy planning applications to special scrutiny, The Guardian reports. In the judgment of the court, Mr. Pickles and his Government...
International: Parisian mayor threatens to sue Fox News over "no-go zones"
Anne Hidalgo, mayor of Paris, has threatened to sue Fox News over comments made on the US television network that stated areas of Paris were "no-go areas" for non-Muslims, reports Reuters. Fox News, reporting after the attacks on Paris over...
Smoking: Germans face time limit for smoking on their balconies
Supreme Court ruling could see German smokers facing 'smoking timetable' on their own balconies, The Daily Telegraph reports. The German Supreme Court has ruled that smoking on private balconies must be a restricted activity. Judges sided with a couple who...