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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.

One in three contractors driven out by IR35 changes

26 October 2021

New research by IPSE has found that changes to IR35 tax rules have had a devastating effect on UK contractors, prompting many of them to leave self-employment altogether.

A survey of contractors by the Association of Independent Professionals and the Self-Employed (IPSE) has found that 35% have left self-employment since the changes to IR35 came in, either moving into permanent employment, retiring, working overseas or simply not working.

Of those who remain, more than a third again (34%) are now working through unregulated umbrella companies and another third (36%) are working through engagements deemed "inside IR35".

Working inside IR35 leaves contractors essentially in no-rights employment, according to IPSE. It also has significant financial consequences: 80% of contractors working inside IR35 said they had seen a drop in their quarterly earnings, by an average of 30%. A quarter said their income had dropped by over 40%.

A significant problem seems to be the implementation of the rule changes - clients are now required to give contractors a Status Determination Statement (SDS) to confirm their IR35 status, but 38% of contractors polled said their clients had not done this.

The findings also show that:

  • 21% of contractors said their clients had blanket assessed all engagements as inside IR35;
  • 11% said their clients had blanket banned contractors altogether;
  • 34% said they were now having to work through unregulated umbrella companies for their clients;
  • 23% of all contractors working through umbrella companies said they are dissatisfied with their umbrella company, compared to 46% who are satisfied.

Andy Chamberlain, IPSE director of policy, said: "This research shows the devastating impact the changes to IR35 have had on contractors, needlessly compounding the financial damage of the pandemic and the unnecessary gaps in support. Now, just when contractors are needed most - amid mounting labour shortages across the UK and particularly in haulage - government decisions have driven out a third of the sector."

For those that remain, IR35 changes have made things "needlessly and enormously more complex" said Chamberlain. "Contractors now find themselves with myriad different and complex ways of working - each with its own pitfalls. They are now divided between those still managing to work outside IR35, those working through unregulated - and sometimes unscrupulous - umbrella companies, those working inside IR35 for less pay and with no rights, and others now on client or agency payrolls."

He added: "There is one word and one word only for this situation: a mess. Now, government must clear it up. We are urging government to review the situation in the contracting sector and be open to radical steps based on that - including, if necessary, repealing the changes altogether. Government must also urgently set out detailed regulations for how umbrella companies should operate and also work to clear the confusion across self-employment by clarifying when it is right for people to operate as sole traders, employees or limited companies."

Written by Rachel Miller.

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