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Establishing a successful recruitment process and clear written employment contracts for new employees can have a major impact on your business.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

All change for small firms as the new tax year begins

16 April 2024

Small businesses are looking to make significant operational changes, especially around efficiency and finances, in the 2024/25 financial year.

New year's resolutions may be commonplace in January but for business owners it is the beginning of the tax year that marks a fresh start. A survey of UK small business owners and decision-makers by Intuit QuickBooks has found that the vast majority (99.6%) of businesses say they are planning to make operational changes in the coming tax year.

Four in ten (41%) of small firms polled describe their new plans as "radical". The survey results show that the top five changes that small businesses will make in the new tax year are:

  • 52% will start using AI to improve efficiency;
  • 50% plan to find ways to reduce tax liabilities in compliance with all laws and regulations;
  • 48% say they will upgrade their financial management systems;
  • 44% will pay closer attention to potential tax rebates;
  • 41% plan to hire a new accountant or tax advisor (66% currently have a qualified accountant or tax advisor to help them manage their taxes).

While 81% of small businesses surveyed say the economy is negatively affecting their business, 68% agree that the new tax year is a good time to think about making changes in their business and 62% of firms surveyed are optimistic for the new tax year as it presents an opportunity to start afresh with financial management. Even so, 63% believe that the new tax year will be make or break for their small business.

Small businesses making cut-backs

The majority of small businesses (84%) plan to make cut-backs in the new tax year, with 44% choosing to reduce overheads and 37% expecting to make hiring freezes.

"Adapting to economic instability this year has been a challenge, but the new tax year presents a great opportunity for small business owners to start afresh, with solutions that might better meet their needs and do the accounting role for them, taking away the pain points and allowing them to remember why they started the business in the first place." Pauline Green, Intuit QuickBooks.

Many firms say that growth plans may have to be put on hold, with 34% of those polled saying that financial or economic uncertainty is preventing them from making effective plans. Furthermore, 79% could delay their investment plans until after the general election.

SME investment in growth hits three-year low

According to recent research conducted by Novuna Business Finance, the percentage of UK small businesses considering new projects to achieve business growth (66%) has actually fallen to its lowest level since January 2021. Of those that are forging ahead with new plans, the most common growth initiatives are:

  • Improving cashflow (cited by 32%);
  • Reducing fixed costs (56%);
  • Dealing with late payment (25%);
  • Investing in new equipment (20%).

The findings show that there has also been a quarter-on-quarter increase in the percentage of small business owners that plan to re-assess their financial commitments as a way to secure further growth, mirroring the findings of the Intuit QuickBooks research.

Jo Morris, head of insight at Novuna Business Finance, said: "One positive we do note from the data is that the focus on cost control in uncertain times remains a top priority - and as part of this operational prudence, more business leaders are now looking at their funding arrangements and financial commitments."

Written by Rachel Miller.

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