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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

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

What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

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.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

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

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

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

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

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

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

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

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

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

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

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.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

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

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

Confused about MTD for Income Tax? You're not alone

22 April 2025

A new survey suggests that there is widespread confusion about Making Tax Digital for Income Tax - despite the fact that it is due to come into effect in less than a year.

While the vast majority of self assessment tax payers (91%) have heard of Making Tax Digital for Income Tax, a new study reveals that many freelancers, business owners and landlords still don't understand what it means for them.

According to the findings of a poll of 2,000 self assessment tax payers, conducted by Censuswide for Intuit Quickbooks, there is "a critical gap between awareness and readiness" for Making Tax Digital for Income Tax self assessment - known as MTD for ITSA.

In fact, one in five taxpayers (21%) with incomes over £50,000 don't believe they're affected by MTD, despite being required to comply by HMRC. The study suggests that confusion over MTD for Income Tax, which comes into force in April 2026, is "widespread".

Making Tax Digital for Income Tax

From April 2026, Making Tax Digital for Income Tax requires all unincorporated business owners, sole traders, freelancers and landlords with annual business and/or rental income over £50,000 to keep digital records and file quarterly updates with HMRC using MTD-compatible software.

Businesses with an income between £30,000-£50,000 will have to comply from April 2027. The new system is likely to affect around 2.8 million UK tax payers.

However, the findings of the Intuit Quickbooks survey show that:

  • One in four tax payers aren't sure if MTD applies to them.
  • Only 59% say they understand their compliance obligations.
  • 41% of those earning over £50,000 wrongly believe that MTD for Income Tax is already mandatory.
  • 47% say they plan to file manually, despite HMRC's digital requirement.
  • Among those who expect to be affected, only 36% are "somewhat aware" of what they actually need to do.

The uncertainty around MTD  for ITSA is fuelling rising anxiety according to the findings of the survey:

  • 35% of those polled are concerned about submitting tax returns correctly and keeping digital records.
  • 33% don't know if they have the right software.
  • 30% aren't clear about what MTD for Income Tax actually means for their business.
  • Only 3% say they have no concerns at all.

Early adopters show the way

Some businesses have taken advantage of the opportunity to use MTD for ITSA early as part of a government pilot scheme that is open to any self-employed individual or landlord. Many others are already benefitting from using an accounting app in their business to keep financial records. However, around 50% of small businesses still don't have an appropriate software system in place.

"Adopting Making Tax Digital for income tax early was a game-changer for me. As a one-man business, staying organised is crucial, and MTD has given me the peace of mind to focus on my craft. I participated in the QuickBooks testing phase scheme, which has helped me get ahead of the changes. It has simplified my finances, reduced stress, and has been invaluable as I move towards planning for my retirement." Rob Smith, founder and sole operator of Amber Electrical Services NE.

Anyone running their own business or renting out property is being urged by the government to get ready for Making Tax Digital for Income Tax as the deadline fast approaches.

Written by Rachel Miller.

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