Invest NI No Nonsense Guide 11 (PDF) - Invest Northern Ireland

The No-Nonsense Guide 2012 NI editionTheNo-NonsenseGuideto Government rulesand regulations forsetting up your business

Thinkingof startinga business?Need help withrules, regulationsand forms?If you’re thinking of starting a business — orif you already run one — The No-NonsenseGuide saves you time, stress and money.It tells you what you need to know aboutthe legal and official side of starting up abusiness. It also explains the regulationsthat affect growing businesses — fromgetting new premises to employing people.The Guide is brought to you by InvestNorthern Ireland, the Government’seconomic development agency. Theinformation it contains has beensourced with the full co-operation andagreement of a range of Governmentdepartments and agencies.Invest NI and its enterprise partners canprovide you with a wealth of informationand support services, including a guideto general business advice — the Start aBusiness guide.If you are thinking of starting a business,contact the Go for it Helpline on 0800027 0639 or www.goforitni.com. If youare already in business and want to grow,contact Invest NI on 028 9069 8000or www.investni.com.This guide sets out the main regulations that apply when youstart up in business, and how to comply with them. It is notcomprehensive or a substitute for independent, legal or otherexpert advice. Every reasonable effort has been made toensure that the information in this booklet is accurate, but noresponsibility can be accepted for any errors or omissions.This guidance is issued to provide users with general background,and is not intended to be, nor should it be considered asamounting to, legal advice which is capable of being relied upon.Users should seek their own independent legal advice whererequired.If you require this brochure in an alternative format (includingBraille, disk, audio cassette or in minority languages to meet theneeds of those whose first language is not English) then pleasecontact:Invest NI’s Equality TeamT : 028 9069 8273Textphone: 028 9069 8585E : equality@investni.comProvided by Invest Northern Ireland and part financed by theEuropean Regional Development Fund under the EuropeanSustainable Competitiveness Programme for Northern Ireland.© Crown Copyright 2012.

ContentsForming a business 4Sole trader 4Partnership 4Limited liability partnership 4Limited company 5Choosing the right name 8Franchises, social enterprises,co-operatives and charities 9Sorting out yourtax andNational Insurance 10Your employment status 10Employed or self-employed? 10Tax and National Insurancefor the self-employed 11Tax for a limited company 12Calculating business expenses 13Allowances forequipment and premises 15How Capital Gains Tax works 15The tax return for individuals 16The tax return for companies 17Working out tax and NI foremployees 17Paying employees’ tax and NIto HM Revenue & Customs 18Statement of employee's pay,tax and National Insurance 19Employees’ pay records atend of tax year 20Tax forms when an employeeleaves or dies 21Business vehicles and tax 21Special tax rules for theconstruction industry 22Your business rates 23What VAT will meanfor you 24What is VAT? 24What VAT rate will I have tocharge? 24Keeping VAT records 25Accounting methods for VAT 25VAT on imports 27VAT on exports 28VAT on business vehicles 29Premises and healthand safety 30Planning consent forbusinesses 30Using your home as yourworkplace 30Fire protection 31Ensuring easy access fordisabled people 32Managing and transportingwaste and packaging 33Other environmental concerns33Health and safety essentials 35Minimum workplacestandards 35Carrying out a riskassessment 36Registering your business 36Insuring your employees 37Informing your staff abouthealth and safety 37Protecting your employees 38Computers and employees 39Reporting incidents 39Protecting yourintellectual property 40Business names and domainnames 40Protecting your trade marks 40Patents and their benefits 41Understanding copyright 43Registered design anddesign right 44Intellectual property protectionoverseas 44Software copyright andlicences 45Is your businessin a specialisedsector? 46Food businesses 46Entertainment and leisure 46Health and care services 46Transport businesses 47…and many other specialcases 47The No-Nonsense Guide

Trading regulationsand data protection 48Unfair trading 48Terms and conditions of sale 48Special rules for shops 51Distance selling 51Selling and marketingelectronically 53Accepting credit and debitcards 53Getting paid on time 54Court action for debts 54Preventing money laundering 55Insuring against liabilities 56Data protection 56Recruiting your firstemployee 58How to recruit and selectemployees 58Eligibility to work in the UnitedKingdom 58Drawing up employmentcontracts 59Changes to employmentcontracts 61Understandingemployees’ rights 62Insuring your employees 62The national minimum wage 62Workers and employees 62Staff who are off sick 63Arranging employees’pensions 64Length of the working week 65Giving staff rest breaks 65People working at night 67Paid annual leave 67Time off work other thanannual leave 67Race, sex and agediscrimination 68Religious and politicaldiscrimination 70Workers with disabilities 71Rights of part-time workers 71Right to belong to atrade union 73When an employee ispregnant 74Pay on maternity leave 75Paid paternity leave 75Paid leave for adoptive parents76Unpaid leave for parents 78Employees and flexibleworking 79Resolving problemswith employees 80Discipline and grievanceissues 80The LRA Code of Practice onDiscipline and Grievance Issues81Monitoring email andweb use 81Valid reasons for dismissal 82Dismissals which areautomatically unfair 83Dismissals which areautomatically unlawful 84Giving notice of dismissal 84Written reasons for dismissal 85Constructive dismissal 85Handling redundancy 87Qualifying for redundancy pay 88Sale or transfer of a business 89Government adviceand support 90Your first steps whenstarting a business 90If your business exports orinnovates 90Raising finance for yourbusiness 91Equity finance for yourbusiness 92Tax relief and credits to helpresearch and development 93Training for you and yourworkforce 93Investing in the socialeconomy 94Support for agriculturalbusinesses 94Help with exporting 94Help from your council 95Useful contacts 96The No-Nonsense Guide

When you are setting up a business, you will need to decide on the ‘trading form’ it willtake. Getting the right option for you means finding the right balance between keeping theadministration simple, protecting your personal assets and how you will be taxed in each caseForming a business4Sole traderBecoming a sole trader is themost straightforward way toset up in business — you canget started quickly and you donot have to answer to anyoneelse. But sole traders arepersonally responsible for anybusiness lossesSetting up in business as a soletrader is quick and easy andinvolves little of the form-fillingassociated with starting andrunning a limited company. Soletraders make their own businessdecisions and have completeresponsibility for the running oftheir business.However, sole traders arepersonally responsible for anylosses the business makes. Thismeans your own possessions— including your home — couldbe at risk if you cannot pay yourdebts. You may also find it moredifficult to get finance to fundyour business.Once you are operational,you must keep a record of thebusiness’s income and outgoings.Despite the name, you do nothave to be on your own; a soletrader can take on employees.Although sole traders areoften taxed as self-employed,this is not automatically the caseeven though you will be workingfor yourself.If you are self-employed, youmust register with HM Revenue& Customs within three monthsof starting up (see Next stepsbelow).Next steps● See Employed orself-employed?, page 10● Visit www.nibusinessinfo.co.uk/legalstructures● It is a good idea to seek helpfrom a business adviser orsolicitor when deciding thebest legal form for yourbusiness● If you are self-employed youmust register with HM Revenue& Customs. Contact0845 915 4515;www.hmrc.gov.uk/startingupPartnershipForming a partnership allowstwo or more people to set upin business together, sharingprofits, management burdens— and risksPartnerships allow you to sharethe responsibility of managing abusiness. And joining forces withother people may mean thatthere is more money to invest inthe business.Partners share personalresponsibility for business debts.They put their own possessionson the line — including theirhome — if things go wrong. If onepartner cannot pay their shareof any debts, the other partnersbecome responsible for it.Remember that a partnercan make business decisionsor enter into binding contractswithout the consent of otherpartners. It is sensible to drawup a partnership agreement,setting out how the partnershipwill be run and how the proceedswill be split (it is advisable touse a solicitor). This will help toprevent disputes.Partners are often taxed asself-employed but this is notalways the case. If you are selfemployed,you must register withHM Revenue & Customs withinthree months of starting up.Next steps● See Employed orself-employed?, page 10● Visit www.nibusinessinfo.co.uk/legalstructures● It is a good idea to seek helpfrom a business adviser orsolicitor when deciding thebest legal form for yourbusiness● When setting up a partnershipagreement you should ask asolicitor for help● If you are self-employed youmust register with HM Revenue& Customs. Contact0845 915 4515;www.hmrc.gov.uk/startingupLimited liabilitypartnershipA limited liability partnershipor LLP shares many featuresof a normal partnership — butit also offers reduced personalresponsibility for businessdebtsThe No-Nonsense Guide

Forming a businessCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationMembers of a limited liabilitypartnership are protected frompersonal responsibility forbusiness debts.Their liability is limited to theamount of money they haveinvested in the business and toany personal guarantees theyhave given to raise finance.As with a traditionalpartnership, partners in a limitedliability partnership sharemanagement responsibilities andpotentially have more money toinvest in the business.But forming an LLP will bemore expensive and complicatedthan setting up a partnership. Itwill involve sending registrationdocuments to Companies Houseand paying a fee.A limited liability partnershipwill also bring a number of extrarunning costs.For example, you will berequired to make financialinformation about your businesspublicly available by sending acopy of its annual accounts toCompanies House. You will alsohave to submit an annual returngiving key details of the LLP andits members.LLPs also have to have theiraccounts audited, although thosewith a turnover of less than£6.5m and a balance sheet ofless than £3.26m are normallyexempt.As with a traditionalpartnership, it is a good ideafor anyone forming a limitedliability partnership to draw upa partnership agreement settingout how the LLP will be run andhow profits will be shared.Members of limited liability}All I needed to do onceI’d registered as a soletrader was manage acash book, work througha simple profit and lossaccount and complete mytax return~Adam EwartKaracha Music Limitedpartnerships are often taxedas self-employed but this is notalways the case. If you are selfemployed,you must register withHM Revenue & Customs withinthree months of starting up (seeNext steps below).You cannot form an LLP ifyour business will be a charity ornot-for-profit organisation.Next steps● See Employed orself-employed?, page 10● Visit www.nibusinessinfo.co.uk/legalstructures● It is a good idea to seek helpfrom a business adviser orsolicitor when deciding thebest legal form for yourbusiness● If you are self-employedyou must register with HMRevenue & Customs. Contact0845 915 4515;www.hmrc.gov.uk/startingupLimited companyA limited company offersreduced responsibility forbusiness debts. But itbrings a range of extra legalduties, too — such as filingyour accounts with CompaniesHouse each yearPrivate companies limitedby shares generally protectthe individual from personalresponsibility for business debts.Your personal risk is restrictedto how much you invest in the5The No-Nonsense Guide

It worked for meHow I wentaboutforming mybusiness6Adam Ewart set up Karacha,a musical instrument andaccessory retailer, whileat university in 2004. Hestarted small as a soletrader and after building abigger customer base anddeveloping the product range,he felt the time was right toincorporate the business}While I was at university, Iclosescraped together some moneyfrom my part-time job in a petshop and some of my studentloan and started sellingsmall accessories for musicalinstruments and vinyl. I playedalto saxophone when I wasyounger and I was looking forsomething to make a businessout of – you’re always swayedby what you know.I managed to buy someliquidated stock of sheet musicfrom a London shop and, withthat, I dropped the vinyl andspecialised in music supplies.I bought a book showing mehow to create a website andbuilt one myself. It wasn’t verygood, mind – but it did startmaking some sales.I started as a sole trader– it was the easiest way todo it. In terms of getting mytax responsibilities sortedout, there was plenty of goodadvice around online aboutwhat I needed to do in termsof registering as self-employedwith HM Revenue & Customs,bookkeeping and paying tax.I also kept an eye on webforums, like the UK Businessand Shell LiveWIRE forums tosee and learn from what otherpeople were doing. And I got alot from the programme for newbusinesses that Invest NI runs –some useful practical advice and,perhaps more than anything,access to some great contacts.Quite early on, I startedworking with an accountant. Atthat stage, we agreed it was bestto stay as a sole trader – all Ineeded to do once I’d registeredas self employed was managea cash book, work through asimple profit and loss accountand complete my tax return.Over the next few years, thebusiness developed. We rentedour first premises from the NorthDown Development Organisationin Bangor. By 2010, about 98per cent of our customers werein England, so we decided toour Bangor warehouseand showroom and rented spacein a warehouse in Oxford. Thisyear, we relocated our stockto Swindon and as of October2011 our first container of stockarrived in Arizona for directdistribution within the USA.Prior to moving ourwarehouse to England andexpanding into the USA, myaccountant and I had anotherconversation about makingKaracha a limited companyand at that stage we decidedtogether - ‘let’s do it’. Thebusiness was getting too large,there was a small financialbenefit and about 10 to 20 percent of the decision was relatedto credibility. Buying can beeasier when you’re a limitedcompany and it’s certainly easierto sell to other limited companiesand local authorities.I got my accountant to do itall. I could have done it myselfand bought an off-the-shelfcompany online for £20 orThe No-Nonsense Guide

Forming a businessAaron McCracken/Harrison PhotographyYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness planKeeping time: Adam's business typehas changed as his firm developssomething, but I thought,well, it’s better to let someoneuse their expertise on this. Itwas so simple – we discussedit for about five minutes.He handled everything, likeregistration with the NorthernIreland Companies Registry(Companies House) and settingup articles of association. Ithink it cost me something like£150 all in – and saved me theworry of getting somethingsimple but important wrong,like the dates of incorporation,for example.~Karacha Music Limited2-4 Balloo AvenueBangor BT19 7QTEmail customerservices@karacha.comwww.karacha.combusiness and any financialguarantees you have given inorder to obtain financing.However, if the companyfails and you have not carriedout your duties as a companydirector, you may be liable topay the company’s debts or maybe disqualified from acting as adirector in another company.You can raise money for thebusiness by allowing individualsor other businesses to subscribefor shares in the company.You can also give employeesthe opportunity to own a shareof the business.Alternatively, the companymay seek loans from banks orother lenders, although lenderswill normally want personalguarantees for the loan from you.Setting up a limited companymay also bring marketingadvantages if it adds to theperceived credibility of yourbusiness.Limited companies paycorporation tax on their profits,while as an owner-manager youwill be taxed as an employee ofthe company in the same way asanyone else who works for you(see Next steps below).There are extra administrativecosts associated with setting upa limited company. The companymust submit annual accountsand tax returns to HM Revenue &Customs — on top of any returnsyou must file on your own behalf(see Next steps below).A set of accounts also has tobe sent to Companies House,making financial informationabout your business publiclyavailable. You must also sendCompanies House annualreturns, giving certain details onthe company and its directorsand shareholders.Limited companies must alsohave their accounts audited.However, most small companieswith a turnover of less than£6.5m and with a balance sheettotal of less than £3.26m areexempt.To set up a limitedcompany, you need to create amemorandum of association andarticles of association, whichhave to cover issues such as whoare the founding shareholdersand how the company will berun.These documents, alongwith the standard applicationdocument (Form IN01), must beforwarded to Companies Housebefore you can start trading.The standard registrationprocess costs £40 and takesup to five days to completeor same-day registration isavailable for £100. Alternatively,you can incorporate onlineusing Business Link's WebIncorporation Service for £18(there is no same-day serviceavailable).Company formation agentscan handle the process (for afee) and, while you can do ityourself, it is worth taking advicefrom a solicitor or a formationagent to make sure you get itright first time.Next steps● See Tax for a limited company,page 12● See The tax return for7The No-Nonsense Guide

Forming a businessCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationHouse: 0303 1234 500;www.companieshouse.gov.uk● You can check that yourbusiness name is not thesame or similar to thatof another company or aregistered trademark. Visitwww.nibusinessinfo.co.uk/nameandtrademark● You can check availability ofdomain names at Nominet(www.nic.uk) or NetNames(www.netnames.co.uk)Franchises,social enterprises,co-operatives andcharitiesYour new enterprise mayhave different aims or ways ofrunning itself, such as thosefeatured below. But you stillneed to establish it within aconventional legal businessform, such as a partnership orlimited companyBuying a franchise allows youto set up your business withouthaving to start from scratch.You buy a licence from anexisting business (known as thefranchisor) to use their tradename, business idea or productsand services.This normally involves payingan initial fee followed by anongoing management fee orroyalties on sales. In return youget support and advice from thefranchisor.Franchising has a number ofadvantages and disadvantages— a business adviser will be ableto tell you more and you shouldget a solicitor to check anyfranchise agreement.Social enterprises arebusinesses that aim to make aprofit to help them fulfil socialaims, such as creating or savingjobs, keeping money within thelocal economy and providingservices or training to the localcommunity.Social enterprises areaccountable to their membersand to the wider community fortheir social, environmental andeconomic impact.Remember that a socialenterprise is not a ‘trading form’in itself. If you are interested insetting up a social enterprise youshould ask your business adviserwhich legal structure would bemost suitable.Co-operatives are one form ofsocial enterprise. A workers’co-operative is a business ownedand democratically controlled byits employees.An alternative tradingform — the Community InterestCompany (CIC) — is designedto give social enterprises theflexibility of the limited companyform.If you want to set up a charity,you have to apply to HM Revenue& Customs for charitablestatus (see Next steps below).Charities benefit from certaintax advantages but have a rangeof restrictions placed on theiractivities.Charities can take a range ofbusiness forms.Next steps● Visit www.nibusinessinfo.co.uk/legalstructures● For more information aboutsetting up a social enterprisevisitwww.socialenterprise.org.uk● For more informationabout Community InterestCompanies, contact 0292034 6228; www.bis.gov.uk/cicregulator/● HM Revenue & Customscan provide you with moreinformation on registering acharity. Contact:0845 302 0203;www.hmrc.gov.uk/charities9The No-Nonsense Guide

Get your income tax and National Insurance arrangements right from the beginning and one of themajor worries is out of the way. And it is not as complicated as you might thinkSorting out your taxand National Insurance10Your employmentstatusThe first stage in gettingyour tax right is defining youremployment statusWhen you run your ownbusiness, the way you are taxeddepends partly on the tradingform your business takes andpartly on the way you run yourbusiness.If you have set up as a soletrader, or are a partner in apartnership, you could be taxedeither as self-employed or as anemployee, depending on the wayyour work is organised (see Nextsteps below).If you set up a limitedcompany, you will be a directorand therefore taxed as anemployee on your earnings fromthat company — even if youwork on your own (see Nextsteps below).Next steps● Visit www.nibusinessinfo.co.uk/taxes● You must define youremployment status to makesure you are correctly taxed.If you are a sole trader or in apartnership, see Employed orself-employed?, right.If you are setting up a limitedcompany, see Tax for a limitedcompany, page 12Employed orself-employed?Whether you are employed orself-employed depends uponthe terms and conditions youwork under and the way inwhich you organise your workAlthough there is no individualtest that is conclusive, you arelikely to be classed as selfemployedif you:● are free to hire other people onyour own terms to do the workyou have taken on, and paythem out of your own pocket;● risk your own money in thebusiness;● provide the main items ofequipment needed to do thework;● are free to take on work at afixed price regardless of howlong it takes to complete;● have a lot of control over yourwork (for example, over hours,place of work, what you doand how you do it);● work regularly for a number ofdifferent people;● have to correct unsatisfactorywork in your own time and atyour own expense.Bear in mind that becauseyou are self-employed for oneparticular task or job, it doesnot necessarily mean you willbe classed in the same way foranother.You can use an online toolon the HM Revenue & Customswebsite to determine whetheryou are employed or selfemployed(see Next steps below).The HM Revenue & Customsleaflet Employed Or Self-Employed For Tax And NationalInsurance Contributions providesfurther guidance (see Next stepsbelow).Special rules may apply ifyour work is arranged throughan agency or if it is arrangedthrough a limited company orpartnership to provide yourservice or the services of othersto clients. These rules havebecome commonly referred toas IR35 (see Next steps below).In these situations, you willnormally have to pay tax andNational Insurance contributionsas if you were an employee.Next steps● See Forming a business,page 4● See Tax for a limited company,page 12● See Working out tax and NI foremployees, page 17● See Special tax rules forthe construction industry,page 22● Visit www.nibusinessinfo.co.uk/taxes● Use an online tool to checkyour employment status:www.hmrc.gov.uk/calcs/esi.htm● Further information aboutemployment status isavailable from HM Revenue& Customs. Contact:0845 300 0627;www.hmrc.gov.uk/employmentstatus● For further advice on IR35,contact the HM Revenue &Customs IR35 Helpline:The No-Nonsense Guide

Sorting out your taxand National InsuranceCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publication0845 303 3535;www.hmrc.gov.uk/ir35Tax and NationalInsurance for theself-employedIf you are self-employed, youmust register with HM Revenue& CustomsWhen you register, HM Revenue& Customs will change your taxstatus to self-employed and setup the right records for you.However, if your work comesfrom more than one source, itis worth remembering that youcould be employed in one job —with your employer deductingtax and National Insurance — andself-employed in another.You will be responsible forpaying your own personal taxand National Insurance. You willhave to fill in a tax return eachyear and you will be taxed onyour business’s profits.To work out your profit, youtake allowable expenses awayfrom your revenue. There arerules governing what you canclaim as expenses (see Nextsteps below).Income tax is charged onall profit above your personalincome tax allowance. Yourallowance depends on yourcircumstances.Remember that the incometax you pay is not based on thesalary you pay yourself. Forexample, if you make a £30,000profit, the whole amount istreated as a taxable sum, subjectto personal and other taxallowances — even if you haveonly drawn £10,000 as salaryand have retained the other£20,000 in the business.You also have to makeflat-rate National Insurancecontributions throughout the}If you’re unsure about anyaspect of the financial sideof running your business,I’d recommend seekingprofessional assistance~Alix MulhollandBog Standard11National Insurance contributions (2012–13 tax year)Class 2 contributions £2.65 a weekClass 4 contributions 9% of your annual profit between £7,605 and£42,475 and 2% on profits above £42,475Income tax (2012-13 tax year)Basic personal allowance £8,105**The allowance reduces for incomes above £100,000Tax rates on income above personal allowanceBasic rate £0–£34,370 20%Higher rate £34,371–£150,000 40%Additional rate More than £150,000 50%The No-Nonsense Guide

You also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan12year (Class 2 contributions), plusNational Insurance contributionsbased on your profits (Class 4contributions). Contributionsare due at the same times as taxpayments.Self-employed peoplepay less National Insurancethan employees but receivesignificantly fewer benefits. Youmay want to take advice fromyour accountant.Next steps● See The tax return forindividuals, page 16● See Calculating businessexpenses, opposite● See Allowances for equipmentand premises, page 15● Visit www.nibusinessinfo.co.uk/taxes● If you are self-employedyou must register with HMRevenue & Customs. Contactthe Newly Self-EmployedHelpline:0845 915 4515. Or useForm CWF1 from the SelfAssessment Orderline: contact0845 900 0404● HM Revenue & Customs offersa guide for people startingup in business: Thinking OfWorking For Yourself? (SE1).Contact the HM Revenue &Customs Newly Self-EmployedHelpline: 0845 915 4515;www.hmrc.gov.uk/startingupTax for alimited companyIf you set up a limitedcompany and work for it, thecompany will pay corporationtax on its business profitsand you will be taxed as anemployee of the companyYou will pay income tax andemployee’s Class 1 NationalInsurance contributions on youremployment income from thecompany. This is called PAYE— Pay As You Earn. Income taxis deducted from all earningsabove your personal incometax allowance. Your allowancedepends on your circumstances.Your business also has topay employer’s Class 1 NationalInsurance contributions for youand any other employees.Your company’s profits eachyear are liable to corporation tax:the company’s taxable profit isits sales income less its businessexpenses (see Calculatingbusiness expenses, opposite) andany investment allowances (seeAllowances for equipment andpremises, page 15).Companies have to calculatetheir own corporation taxliability. There are also specificrules on what can count asa business expense whencalculating the profits.You will also be taxed on anyreturn on your investment in thecompany or any dividends andbenefits you receive from thecompany, as well as on any loansthe company may make to you.Next steps● See Calculating businessexpenses, opposite● See Allowances for equipmentNational Insurance contributions (2012–13 tax year)Class 112% of weekly earnings between £146 andcontributions £817 and 2% on earnings above £817*Employer’scontributionIncome tax (2012-13 tax year)13.8% of employee’s weekly earnings above£144 a week**Lower rates apply if you belong to a contracted-outoccupational pension schemeBasic personal allowance £8,105**The allowance reduces for incomes above £100,000Tax rates on income above personal allowanceBasic rate £0–£34,370 20%Higher rate £34,371–£150,000 40%Additional rate More than £150,000 50%The No-Nonsense Guide

Sorting out your taxand National Insurance}With the right systems inplace, managing your taxand National Insuranceobligations isn’t difficult~and premises, page 15● See Working out tax and NI foremployees, page 17● Visit www.nibusinessinfo.co.uk/taxes● If you form a limited companyyou must register as anemployer with HM Revenue &Customs, even if you are thecompany's only employee.Contact the New EmployerHelpline:0845 60 70 143;www.hmrc.gov.uk/newemployersCalculating businessexpensesof your domestic bills may beallowable as business expenses:for example, if you use yourphone for business calls. Youshould check the position withHM Revenue & Customs orconsult your accountant.The cost of buying equipmentor premises (and any reductionin value following the purchase)is not allowed as a businessexpense — these areas arecovered by capital allowancesand annual investmentallowances (see page 15).You need to keep records of allincome and expenditure in orderto fill in your tax return each yearand pay the correct tax.13Alix MulhollandBog StandardYour business will be taxed onits profits: correctly workingout what your business hasspent is just as important ashow much money has come inThere are strict rules concerningwhat can and cannot be countedas a business expense whencalculating profits.Allowable expenses includethe costs of any goods ormaterials bought as stock andthen resold, rent and runningcosts for premises, marketingcosts, cost of travel to seecustomers, financing costsand general running expenses,such as postage and telephonecharges. Costs which arenot allowed include personalexpenses such as travel towork, clothes or living expenses,entertaining clients and finessuch as parking tickets.If you work from home, someNext steps● See Allowances for equipmentand premises, page 15● See The tax return forindividuals, page 16● See The tax return forcompanies, page 17● See Using your home as yourworkplace, page 30● For more information, read:How To Calculate Your TaxableProfits (HS222). ContactHM Revenue & CustomsSelf Assessment Orderline:0845 900 0404;www.hmrc.gov.uk/saThe No-Nonsense Guide

14It worked for meHow Imanage mybookkeepingAlix Mulholland started BogStandard, her County Downbasedcreative Irish giftwarebusiness, in 2003. Marketedas ‘Basic luxury from Ireland’the business has achievedhealthy online and offlinesales at home and abroad.Alix explains how she takescare of her books and taxobligationsMark Barton/Capture Photographic}The business very muchBasketstarted out as a part-timekitchen table enterprise — infact, I still had a full-timejob. We’ve since experiencedexcellent growth and now wesell to customers throughoutIreland and the UK, whichmeans I have much morebookkeeping to do.Before I started thebusiness I had hardly anyknowledge of tax, NationalInsurance or bookkeeping— I was completely clueless.Getting to grips with thefinancial aspect of running mybusiness has involved a steeplearning curve. Before I startedthe business, I went on a localenterprise course to find outabout the tax side of things.Fortunately, my boyfriend —who’s now my husband — is anaccountant. He doesn't workfor the business but he looksover my accounts, advising meon tax and helping me fulfil mylegal obligations.Being a limited companymeans I have to file accountseach year, and my husbandtakes care of that and other taxand National Insurance-relatedcorrespondence. He also helpsme with payroll. I’m lucky, I knowit saves me a lot of money I’dotherwise have to spend onaccountancy fees.Day to day, I do my own books.It is a burden, because thereare so many other things thatdemand my attention, but it'simportant.Each day I need to processorders and send out invoices— some of which I have tochase for payment. You haveto keep a close eye on moneyyou are owed and how muchyou owe and I log every pennymy business spends. I use abookkeeping software package,which ensures accuracy andsaves time. We sit down regularlyto assess our cashflow – it’shugely important.With the right systems inplace and if you keep on topof it, managing your tax andNational Insurance obligationsisn’t difficult. But if you’reof plenty: Alix's eye fordetail helps her business prosperunsure about any aspect ofthe financial side of runningyour business I’d recommendseeking professionalassistance. You don’t have toknow every technical detail,but there is information thatyou must be aware of.You’ve also got to makesure your books are wellmanaged and that yourfinancial information isaccurate and up to date. If youdon’t, you’re in serious dangerof losing control of yourfinances — and your business.~Bog Standard19a Monlough Road WestNewtownards, Co DownBT23 6NDTel 028 9081 2145Email info@bogstandard.iewww.bogstandard.ieThe No-Nonsense Guide

Sorting out your taxand National InsuranceCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationAllowancesfor equipment andpremisesWhen working out yourprofits, you cannot count asan expense the purchase ofpremises and equipment — or oftheir gradual reduction in valuethrough wear and tear. Butyou can claim allowances formost investment in plant andequipment, deducting some orall of these costs from yourtaxable profitsThe annual investment allowanceallows businesses to deduct 100per cent of the costs of mostplant and machinery (excludingcars), up to an annual limit of£25,000.If you spend more than thisamount in a year, you can claimcapital allowances on the excess.Rates of capital allowances vary,and sometimes work in slightlydifferent ways.The main rate for equipmentis 18 per cent. So for an itemcosting £5,000, you can deduct£900 in the first year (at 18 percent). The year after, £738 canbe deducted — 18 per cent ofthe remaining value of £4,100.In this way, the allowance slowlydeclines year by year.Capital allowances cannotbe claimed for purchases ofcommercial premises.A number of special schemesprovide increased first-yearallowances — for example, anallowance of 100 per cent appliesto a range of environmentallyfriendly equipment.Next steps● Visit www.nibusinessinfo.co.uk/taxes● For more information, read:How To Calculate YourTaxable Profits (HS222).Contact HM Revenue &Customs:0845 900 0404;www.hmrc.gov.uk/sa● For more information on theApril 2012 changes to capitalallowances, read: CapitalAllowances;www.hmrc.gov.uk/budget2010/bn04.pdf● For further information aboutenhanced capital allowancesfor environmentally friendlyequipment, visitwww.eca.gov.ukHow Capital Gains TaxworksIf you are planning to create andsell a business or use theproceeds from the sale of yourbusiness to fund yourretirement, you need to be awareof Capital Gains Tax (CGT). Andif you sell any assets — such asyour premises — you may berequired to pay CGTYou may have to pay CGT if yousell — or sometimes if you giveaway — what HM Revenue &Customs calls ‘assets’. An assetis something you own, such asshares, property or the goodwillof a business.If an item is worth more thanyou paid for it when you sellor ‘dispose’ of it, you may beliable to pay CGT. The differencebetween the item’s value whenyou dispose of it and when youacquired it (less certain kinds ofexpenses allowed by HM Revenue& Customs) is the capital gain.This is what you may be taxedon.You will be taxed personallyon gains you make when yousell your business. Each year acertain amount of capital gainsare exempt from CGT (£11,200in the tax year 2012-13). You canalso offset any allowable losseswhere you have sold assets forless than you paid.Gains on the sale of a businessby an individual are taxed atten per cent, up to a lifetimeallowance of £10 million. Gainsin excess of this entrepreneurs'relief are taxed at 18 per cent or28 per cent depending on yourtotal taxable income.Remember you do notnormally have to pay CGT onthe sale of your own home.And there is a range of otherexemptions and reliefs, such asgains made on the sale of privatecars, or from shares in ISAs.Limited companies paycorporation tax on any capitalgains, as they are treated as partof the company’s taxable profit.CGT can be complex. Youshould take advice from anaccountant, particularly if yourcompany sells its business,goodwill, property or shares inother companies.15The No-Nonsense Guide

16Next steps● Further information aboutall aspects of Capital GainsTax — including entrepreneurs'relief — is available from HMRevenue & Customs. Visitwww.hmrc.gov.uk/cgt● Visit www.nibusinessinfo.co.uk/taxesThe tax return forindividualsBoth self-employed people anddirectors of limited companiesmust fill in a self assessmenttax return each year. Thisprovides HM Revenue &Customs with the detailsneeded to calculate your taxbill for the year.HM Revenue & Customs shouldsend you a letter in Aprilreminding you that you need tocomplete your tax return. Youwill need to complete all thedetails of taxable income, gainsand tax allowances.If you want to submit a paperreturn, you must send it to HMRevenue & Customs by October31. If you file your return online,you have until January 31. Youwill need to register for HMRevenue and Customs OnlineServices if it is the first time youhave filed your return online.Allow plenty of time for this -activation details will be sent toyou by post, so you will not beable to use the service straightaway.HM Revenue & Customs will}I use a bookkeepingsoftware package toensure accuracy andsave me time~Alix MulhollandBog Standardwork out how much tax you owe.If you are self-employed, youwill need to use the records youkeep while running your businessto fill in your tax return.After your first year inbusiness, your tax will bedue in two equal instalmentson January 31 (during thecurrent year) and July 31 (inthe following tax year). Theseinitial amounts are based on theprevious year’s tax bill.A balancing payment is dueon the following January 31,to adjust for any differencebetween the amounts paid andthe tax due as a result of youractual profits and gains.If you are a director of alimited company, you will need tokeep information relating to yourpay, tax, expenses and benefitsin kind (such as the informationcontained on forms P60 andP11D, for example) as well asrecords of any dividends youhave received (see Next stepsbelow).As a company director,your tax is due on January 31following the end of the tax year.You will have to pay any tax youowe after taking into account thetax that has already deductedunder the PAYE system. If youowe less than £2,000 and submityour online return by December30, this tax can probably becollected under PAYE as well.Next steps● If you are running a limitedcompany, you will be taxed asan employee and need to setup your own payroll, even ifThe No-Nonsense Guide

Sorting out your taxand National InsuranceCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationyou are the only employee.See Working out tax and NI foremployees, below;See Statement of employee'spay, tax and NationalInsurance, page 19;See Employees’ pay records atend of tax year, page 20● Visit www.nibusinessinfo.co.uk/taxes● For more information, contact0845 900 0444;www.hmrc.gov.uk/sa● To register for HM Revenueand Customs Online Servicesor file your self-assessmentincome tax return online, visithttps://online.hmrc.gov.ukThe tax return forcompaniesYour company is responsiblefor calculating and paying taxon its profitsIf your business is a limitedcompany or limited liabilitypartnership registered withCompanies House, you must letHM Revenue & Customs knowthat it is operating within threemonths — unless they havealready been in touch with you.Accounting periods are thebasis periods for corporationtax. Your first accounting periodbegins when your company startsoperating. Accounting periods donot have to mirror the tax year,but they must not be longer than12 months.You must keep detailedrecords relating to all incomeCorporation tax (2012–13 financial year)Taxable profitsTax rate£0–300,000 20%£300,001–£1.5m Rate rises gradually from 20%–24% (marginal relief)More than £1.5m 24%and expenses. If you are a limitedcompany, you must ensure thatyou operate the correct Pay AsYou Earn (PAYE) procedures foryou and any other employees.Once you have registeredyour limited company, you willbe responsible for working outand paying any corporation taxdue within nine calendar monthsand one day after the end of itsaccounting period. You can befined for inadequate tax recordsor paying tax late. You must keepcompany records for at least sixyears.It is your responsibility toobtain and submit a returnand to pay the tax owed. Yourcompany tax return must be filedonline and corporation tax paidelectronicallyCorporation tax bands are setout in the table on this page. Thelevels may be reduced for certaincompanies, especially if thereare other companies under thesame control. For example, if youown and run two companies, thethresholds will be halved for eachcompany.Next steps● See Working out tax and NI foremployees, opposite● Visit www.nibusinessinfo.co.uk/taxes● More information aboutcorporation tax is availablefrom HM Revenue & Customs.Visit www.hmrc.gov.uk/ct● To register for HM Revenue& Customs Online Services orfile your company tax returnonline, visit https://online.hmrc.gov.ukWorking out tax andNI for employeesIf your business has employees,you will need to set up payrollarrangements. You have towork out the tax and NationalInsurance contributions owedand pay them to HM Revenue &Customs. Some of this processcan be completed manually,but it is now a requirement foralmost all employers to file anumber of key forms onlineIncome tax is deducted from anemployee’s pay through the PayAs You Earn system, PAYE.You must register as anemployer with HM Revenue &Customs. You will be sent a PAYE17The No-Nonsense Guide

18reference number and a linkto online PAYE guidance. Thiscontains all the forms, tables andinformation you need to operateyour payroll system. You can alsoaccess all of this informationon the HM Revenue & Customswebsite.For each employee, you mustuse a form P11 to record wagepayments, the income tax andNational Insurance contributionsdue from the employee and theemployer's National Insurancecontributions you must pay.You can use paper P11s or youcan keep electronic records usingcommercial payroll software orthe free P11 Calculator includedin the HM Revenue & CustomsBasic PAYE tools. HM Revenue &Customs recommends keepingelectronic records as it simplifiesyour end-of-year tasks nowthat almost all employers arerequired to file their EmployerAnnual Return online.When a new employee startswork with you, you will need tofind out their National Insurancenumber and their tax codebefore you can fill in form P11.If they have worked before,ask the employee for partstwo and three of the P45 formprovided by their previousemployer. This gives theirNational Insurance number andtax code, as well as details oftheir tax and pay to date in thecurrent tax year.If the employee does not havea P45, ask for their NationalInsurance number and get themto fill in the relevant part of aform P46. With this information,the table in the Paying Someonefor the First Time booklet (seeNext steps below) will show youthe tax code to use.Then call the HM Revenue &Customs New Employer Helpline,which will tell you whether youneed to send the P46 to your taxoffice.Updating an employee's formP11 or equivalent payroll recordfor each payday tells you howmuch net pay needs to go to theemployee — and how much is dueto HM Revenue & Customs. Otherdeductions such as pensionscan also affect the size of anemployee's pay packet.If you are asked to do so, youhave to deduct student loanrepayments from an employee’spay packet and pay them toHM Revenue & Customs. Youmust record any student loanpayments deducted on theemployee's form P11. You thenadd the student loan deductionsto the income tax and NationalInsurance that you are due topay to HM Revenue & Customs.Next steps● For more information on yourpersonal tax and NationalInsurance: if you are selfemployed,see Tax and NI forthe self-employed, page 11;if your business is a limitedcompany, see Tax for a limitedcompany, page 12● For information on youremployment status, seeEmployed or self-employed?,page 10● For information on PAYE,including student loandeductions, or to downloadPAYE tools, visit www.nibusinessinfo.co.uk/paye● For more information on PAYEor to register as an employerwith HM Revenue & Customs,contact 0845 60 70 143;www.hmrc.gov.uk/paye● For information on newemployees, read PayingSomeone For The First Time(P49). Contact 08457 646646; www.hmrc.gov.uk/forms/p49.pdf● For information on howto pay employees’ tax andNational Insurance, see Payingemployees’ tax and NI, below● To register for HM Revenueand Customs Online Servicesor file PAYE forms online, visithttps://online.hmrc.gov.ukPaying employees’tax and NI to HMRevenue & CustomsTax and National Insurancecontributions are paid to HMRevenue & Customs everymonth unless your businesscollects less than £1,500 amonth, in which case it can bepaid quarterlyKeep records of your totalmonthly or quarterly paymentsto HM Revenue & Customs onform P32 or electronically.Tax and National Insurancecontributions must be paid toHM Revenue & Customs by the19th of each month if you pay bycheque, or by the 22nd if you payelectronically or through yourThe No-Nonsense Guide

Sorting out your taxand National InsuranceCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publication}We sit down regularly toassess our cashflow – it’shugely important~Alix MulhollandBog Standardbank. If you collect less than£1,500 a month in income tax,National Insurance and studentloan repayments, you can payquarterly: by January 19, April 19,July 19 and October 19 if you payby cheque, or by the 22nd of thosemonths if you pay electronically orthrough your bank.You will automaticallyreceive a payment booklet fromyour HM Revenue & CustomsAccounts Office to send withyour payments if you pay by post.You can also pay by Bacs DirectCredit, your bank’s telephoneor internet banking, BillPay orCHAPS.You can pay your tax andNational Insurance contributions toHM Revenue & Customs in euros ifyou wish.Next steps● For more information onPAYE or to download PAYEtools, visit www.nibusinessinfo.co.uk/paye● HM Revenue & Customs canprovide detailed informationon how to pay tax andNational Insurance. Visitwww.hmrc.gov.uk/payinghmrc● For more information on usingeuros to make payments toHM Revenue & Customs, visitwww.hmrc.gov.uk/euro● Form P32, the EmployerPayment Record, is availableonline or can be ordered fromthe HM Revenue & CustomsEmployer Orderline. Contact08457 646 646;www.hmrc.gov.uk/ebu/p32.pdfStatement ofemployee's pay,tax and NationalInsuranceYou must give each employeea payslip or statement eachtime you pay them. It must setout their gross and net pay andthe amounts of tax, NationalInsurance and other deductionsThe itemised payslip orstatement must show:● their gross wages or salarybefore you make anydeductions;● details of deductions fromtheir pay which vary from oneperiod to the next (incometax and National Insurancecontributions, for example);● details of any fixed deductionswhich stay the same every payperiod (such as trade unionsubscriptions);● their net wages or salaryafter tax;● a breakdown of payments ifparts of the salary are paid indifferent ways.Instead of itemising eachfixed deduction in every paystatement that you give anemployee, you can include themall on an annually updatedstanding statement.If there are any changes thataffect these fixed deductions,you must either inform theemployee in writing or providethem with a new standingstatement.19The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication20Next steps● Visit www.nibusinessinfo.co.uk/taxes● For more information, read:Pay Statements: What TheyMust Itemise (ER12). Visitwww.delni.gov.uk/er12Employees’ payrecords at end of taxyearThere are other forms that haveto be sent to HM Revenue &Customs — and given out toyour staff — at the end of everytax year. Almost all employersare now required to file theirEmployer Annual Return onlineThe tax year runs from April6 to April 5. At the end of thetax year, and no later than May19, you must file an EmployerAnnual Return (forms P35and P14) to HM Revenue &Customs. Almost all employersare required to file their annualreturn online.You will need to completeand submit a form P14 for eachemployee for whom you haveprepared a form P11 during thetax year (see Working out taxand NI for employees, page 17).You also have to complete aform P35, which summarises theend-of-year payroll figures fromall the P14s you have prepared.You will be sent a reminder tofile your Employer Annual Returntowards the end of the tax year.}We’re meticulous whenit comes to recordingexpenditure and keepingreceipts~Alix MulhollandBog StandardYou must also provideeach employee with a writtensummary of their pay, tax andNational Insurance figures forthe tax year. You do this usingform P60, which most payrollsoftware will allow you to printautomatically once you’vecompleted the employee’sform P14. You must give youremployees their P60s by May 31.You must complete a formP11D for all directors and everyemployee who earns £8,500or more a year and has beenpaid expenses or benefits thatare taxable. It lists the taxableexpenses and benefits providedto them during the tax year. Youmust also file a form P11D(b),which shows the total Class 1ANational Insurance contributionsdue on these expenses andbenefits.A form P9D must be sentto HM Revenue & Customs foreach employee earning lessthan £8,500 a year who hasbeen paid taxable expenses orbenefits.Forms P11D, P11D(b) and P9Dmust all reach HM Revenue& Customs by July 6 eachyear. You are obliged to giveemployees a copy of their P11Dor P9D by the same date.Next steps● Visit www.nibusinessinfo.co.uk/paye● HM Revenue & Customsprovides a wide range offurther information aboutcompleting your end-of-yearpayroll tasks. Contact 084560 70 143;The No-Nonsense Guide

Sorting out your taxand National Insurancewww.hmrc.gov.uk/paye● To register for HM Revenueand Customs Online Servicesor file PAYE forms online, visithttps://online.hmrc.gov.ukTax forms when anemployee leaves ordiesIn both cases, you complete aP45 formWhen an employee leaves, fill ina P45 with details of their grosspay, tax code and tax deductedin the year to the date of leaving.You then send one part of theform online to HM Revenue &Customs and give the otherthree parts to the employee.If an employee dies, completea P45 and send all four partsof it to your HM Revenue &Customs office.Next steps● Visit www.nibusinessinfo.co.uk/taxes● Further information isavailable from HM Revenue &Customs. Contact 0845 60 70143 or visitwww.hmrc.gov.uk/paye● To register for HM Revenueand Customs Online Servicesor file PAYE forms online, visithttps://online.hmrc.gov.ukBusiness vehiclesand taxThe tax you pay related tovehicles used for your businessdepends on a variety ofelements, including the legalform your business takes andyour employment statusEvery vehicle must display a taxdisc, though some vehicles areexempt from vehicle excise duty(for example, historic vehiclesand purely agricultural vehicles).The rates vary; check with theDriver and Vehicle Agency (seeNext steps below).Personal taxation on the useof cars for business works in twoways: one for the self-employedand another for employees,including directors of limitedcompanies (see Next steps below).If you are self-employed, youhave two choices.You can claim the actualexpenses of using a vehicle forbusiness when you are workingout your profits. If you take thisoption, you can also claim capitalallowances if you own the vehicle(see Next steps below).Alternatively, you can usethe rates from the ApprovedMileage Allowance Payments(AMAP) scheme to calculateyour vehicle expenses using afixed rate for each business mile.Rates depend on the level ofmileage — full details are on theHM Revenue & Customs website.Under this system, you cannotclaim for capital allowances orany interest you pay on a loan tobuy the vehicle.In both cases you must keepadequate records to back up thefigures on your tax return.If you are employed, the rulesare different. If the businessmakes a car available to anemployee for their private aswell as business use (a ‘companycar’), the employee will normallybe taxed on it as a benefit.Remember: you will be treatedas an employee for tax purposesif your business is a limitedcompany.Employees will not normallybe taxed on the use of thevehicle if — including the valueof the vehicle benefit — theyearn less than £8,500 in a taxyear or if they use a pool car ofthe business. (This is a vehicleroutinely used by more thanone employee and not kept atan employee's home when notbeing used for business, norused privately in any other way.)Otherwise, employees aretaxed on the benefit, the chargebeing a percentage of thevehicle’s list price. For almost allcars, the tax depends on the levelof carbon dioxide emissions andthe fuel the vehicle uses. There isgenerally a lower tax charge onmore energy-efficient cars.If employees receive any fuelfor private use which they do notpay for themselves, they will alsobe taxed on this benefit.If employees use their owncars for business purposes, theycan be reimbursed under theApproved Mileage AllowancePayments (AMAP) scheme at aset rate per business mile.The rate depends on thenumber of business miles theytravel. If you pay the employeeno more than the maximumcalculated using the appropriate21The No-Nonsense Guide

22rate, you can make the paymentfree of tax and NationalInsurance.Businesses that make vehiclesavailable to employees for theirprivate use must annually reportthe taxable value of the benefitto HM Revenue & Customs onform P11D. Employers must alsopay Class 1A National Insuranceon the taxable value of cars andfuel made available to employeesfor their private use. Thereare also VAT rules on businessvehicles (see Next steps below).If your business buys a car,it can claim a capital allowance(see Next steps below). If yourbusiness leases vehicles, the costcan be deducted from taxableprofits.The rules in this area arecomplex. You should checkthe position with HM Revenue& Customs or consult youraccountant.Next steps● See VAT on business vehicles,page 29● See Allowances for equipmentand premises, page 15● See Employed orself-employed?, page 10● Visit www.nibusinessinfo.co.uk/businessvehicles● You must arrange your vehicleexcise duty on any businessvehicles. Contact the Driverand Vehicle Agency:0845 402 4000;www.dvani.gov.uk● HM Revenue & Customs cangive you further informationon business vehicles and tax.Contact the New EmployerHelpline: 0845 60 70 143. Ifyou are self-employed, call theSelf Assessment Helpline:0845 900 0444.● Further information abouttax on business vehicles isavailable on the HM Revenue& Customs website:www.hmrc.gov.uk/cars● For more information read:Using Your Own VehicleFor Work — Information ForEmployees. Contact theHM Revenue & CustomsEmployer Orderline:08457 646 646;www.hmrc.gov.uk/mileageSpecial tax rulesfor the constructionindustryThe Construction IndustryScheme (CIS) provides aset of rules for the paymentof income tax and NationalInsurance if you are in theconstruction industryIn the construction industry,businesses fall into two maincategories: contractors andsubcontractors (though itis possible for a business tobe both a contractor and asubcontractor).A contractor is any personor business that pays othersto carry out constructionwork. (Businesses outsidethe construction sector canbe classified as contractors iftheir construction expenditureaverages more than £1 millionover three years.)Broadly, a subcontractor is anyperson or business that carriesout construction work.Contractors must register withHM Revenue & Customs. Theymust also must verify the taxstatus of subcontractors beforepaying them for the first time— HM Revenue & Customs willdetermine whether the paymentshould be gross or whetherdeductions should be made.The standard rate ofdeduction is 20 per cent. Ahigher rate of 30 per centapplies for subcontractors thatHM Revenue & Customs has notbeen able to verify.Contractors must make amonthly return to HM Revenue &Customs detailing the paymentsmade to all subcontractors.Subcontractors must alsoregister with HM Revenue &Customs. They can apply to bepaid gross by contractors if theymeet turnover, business andcompliance criteria.Next steps● Visit www.nibusinessinfo.co.uk/constructionindustry● You can get further detailson the Construction IndustryScheme from HM Revenue &Customs. Contact0845 366 7899;www.hmrc.gov.uk/cisYour business ratesThe No-Nonsense Guide

Sorting out your taxand National InsuranceCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publication}Make sure your booksare well managed oryou could be in seriousdanger of losing control ofyour finances – and yourbusiness~Alix MulhollandBog StandardWhen you start your business,you will probably have topay business rates for yourpremises — sometimes even ifyou work from homeUsually the occupier of businesspremises has to pay nondomesticrates. This can be theowner-occupier or a leaseholder.Agricultural land and buildingsare exempt from businessrates. And most manufacturingpremises in Northern Irelandqualify for industrial derating —rate relief — meaning that only30 per cent of the full businessrates is payable.Rates are based on aproperty’s assessed rental value,with the annual bill calculatedby multiplying the relevant ratein the pound (depending on thedistrict council area).In Northern Ireland, therate in the pound is typicallybetween 50p and 60p, so ratesbills for most businesses (exceptmanufacturers) are currentlyabout 50 to 60 per cent ofrateable value. Small businesseswith a rateable value of less than£2,000 automatically receivea discount of 50 per cent. Forrateable values between £2,000and £5,000 there is a 25 percent discount.New occupiers of businesspremises should contact Land &Property Services. You shouldalso notify Land & PropertyServices if any physical changesthat might affect the rateablevalue have been made since youtook up occupation.If you work at home, businessrates may be payable for thepart of the property you use forwork. You would pay domesticrates in the usual way for theremainder of the property.Check with your local Land &Property Services office.Next steps● Visit www.nibusinessinfo.co.uk/businessrates● Inform Land & PropertyServices that you are goingto be occupying businesspremises and that you wantan assessment of the businessrates you will have to pay● For details of your local Land& Property Services office,contact: 0300 200 7801 orvisitwww.dfpni.gov.uk/lps23The No-Nonsense Guide

If your business supplies goods or services exceeding £77,000 each year, you must register for valueadded tax (VAT). You will have to charge VAT on your sales and pay it on most purchases. But don’t bedaunted — a lot of the paperwork is the kind of thing a well-run business should be doing in any caseWhat VAT will meanfor you24What is VAT?Value added tax (VAT) is a taxon sales of goods and services.It is not a tax on profits.Businesses must registerfor VAT if they exceed theregistration thresholdRegistration for VAT is compulsoryfor most businesses that supplygoods and services amountingto more than £77,000 (2012-13tax year) in any 12-month period.You must register within 30 daysof reaching the threshold, orif you expect your turnover toexceed the threshold in the next30 days alone.Businesses collect VAT onthe Government’s behalf. Allbusinesses pay VAT on mostpurchases. This is called inputtax. Registered businessescharge VAT on the goodsand services they sell. Thisis output tax.If a VAT-registered businessreceives more output tax fromsales than it pays in input taxon purchases, it must pay thedifference to HM Revenue &Customs at fixed intervals (seeNext steps below).If more input tax has beenpaid than output tax charged,HM Revenue & Customs willrefund the difference to yourbusiness.Businesses with a turnoverbelow the £77,000 threshold canregister voluntarily. Sometimesthere can be a business advantagein doing this. For example,registering can allow you toreclaim the VAT you pay on yourstart-up costs.Next steps● See Keeping VAT records,opposite● Visit www.nibusinessinfo.co.uk/vat● You can register with HMRevenue & Customs for VATonline or by using form VAT 1.Contact: 0845 010 9000;www.hmrc.gov.uk/vat● Further information about VATis available from HM Revenue& Customs. Contact 0845 0109000; www.hmrc.gov.uk/vat● For further information onregistering voluntarily contactHM Revenue & Customs on0845 010 9000 — or seekadvice from your accountantWhat VAT rate will Ihave to charge?The rate of VAT that you mustcharge varies according to thetype of product or service youofferGoods and services (supplies) aredivided into four categories forVAT purposes. They can be:● taxed at a standard rate (20per cent, increased from 17.5per cent from 4 January 2011);● taxed at a reduced rate (fiveper cent);● taxed at a zero rate;● exempt from VAT.All goods and services thatare not exempt are referred toby HM Revenue & Customs as‘taxable supplies’.VAT-registered businesses mustadd the standard rate of VAT tothe value of most products andservices when they are sold.The reduced rate must becharged on some products andservices, including: domesticfuel or power; various kinds ofalterations and improvementsto premises; women's sanitaryproducts; smoking cessationproducts; children's car seats.There are also specific ruleson products and services thatare zero-rated. In these areas,VAT is applied at zero per cent.Businesses that offer zero-ratedproducts or services can stillreclaim the input tax they havepaid on purchases. Zero-ratedproducts include: most food (butnot meals in restaurants or cafésand hot food and drink); books;newspapers; young children’sclothing and shoes; exportedgoods; most public transportservices.Exempt products and servicesinclude: insurance; providingcredit; certain types of educationand training; certain servicesfrom doctors and dentists;selling, leasing or letting landand buildings (but not garages,parking spaces or hotel andholiday accommodation).Any business which offerssome goods or services that aresubject to VAT and some thatare not has ‘partial exemption’.This means it can generally onlyreclaim input tax on purchasesused for making non-exemptproducts or services.The No-Nonsense Guide

What VAT will meanfor youCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationNext steps● Visit www.nibusinessinfo.co.uk/vat● Check if your products orservices are standard-rated,reduced-rated, zero-rated orexempt. Contact HM Revenue& Customs VAT Helpline:0845 010 9000;www.hmrc.gov.uk/vatKeeping VAT recordsBeing registered for VAT meansthat you must keep full andaccurate recordsYou must start keeping recordsand charging VAT to yourcustomers from the date youknow you have to be VATregistered.Each invoice orreceipt must show clearly therate and amount of VAT chargedand the VAT number given toyour business by HM Revenue &Customs when you registered.You must also ensure your VATregisteredsuppliers do the same,so you have evidence that youare entitled to reclaim the inputtax you have paid.You must keep copies of allinvoices or receipts and a noteof all the VAT you have chargedand paid.You must submit a VAT return— showing how much VAT youhave received and paid — andforward payment of the balanceto HM Revenue & Customs.}You must keep on topof your obligationsif VAT rules apply toyour business – it’s notsomething you can affordto ignore or get wrong~Alan AndersonBlue Tube DesignBusinesses that registered forVAT after April 2010 must filetheir VAT returns online.You must complete a VATreturn for each accountingperiod. This is usually every threemonths, but if you expect theinput tax you pay to be greaterthan the output tax you charge,you can make monthly returns.You will automatically be sent aVAT return form to fill in beforeeach payment is due. You mustreturn it to HM Revenue &Customs no later than one monthafter the accounting period.There is no set way to keeprecords, but they must be easyfor HM Revenue & Customs toinspect whenever it asks to doso. Full records must also be keptfor a minimum of six years.Next steps● Visit www.nibusinessinfo.co.uk/vat● For more information contactHM Revenue & Customs:0845 010 9000;www.hmrc.gov.uk/vatAccounting methodsfor VATThere are a number of methodsyou can use to accountcorrectly for VAT. Choosethe one that best suits yourbusinessUnless you arrange otherwisewith HM Revenue & Customs,your output tax must be entered25The No-Nonsense Guide

It worked for meHow I meetmy VATobligations26Formed in June 2009,Bangor-based start-up BlueTube Design charges VATon most of the services andproducts it sells. However,owner Alan Anderson wassurprised at how easy it wasto become VAT registeredand the range of expensesfrom which his business couldreclaim VAT}For many years I’d beenUseful:freelancing. Businesses wouldhire me for fixed terms: I’dcome in, help them with theircorporate identity, website,branding and marketing. Iwas also doing sales training.I realised I could earn moremoney by setting up my ownbranded business, which iswhat I finally did this year.My knowledge of VAT was— and is — fairly basic, but Iknew that if I expected mybusiness to turnover a certainamount, I’d have to becomeVAT registered. I might notexceed the VAT threshold thisyear, but it’s better to be safethan sorry.Becoming VAT registeredwas incredibly straightforward.It was dead easy and I didn’teven have to ring up andspeak to anyone — I did itonline in a few minutes.Obviously, experience toldme which of my products andservices I’d have to charge VATon. Probably nine out of everyten invoices I issue includesVAT. But when I looked into ita little bit more, I was surprisedto find out how much VAT I couldreclaim. This even applies toutility and telephone bills, whichis important, because I run mybusiness from home. Being ableto reclaim VAT — money thatyour business has already paidout — aids cashflow.I’m in the process ofcompleting my first quarterlyVAT return. If I’m honest, it’s abit of a learning curve. I couldhave paid an accountant orbookkeeper to do it for me, butI’m trying to limit my costs soI've decided to do it myself.I’m very lucky because I cancount on help from my fiancéeKatherine, who comes from abanking background. We had ourson in 2008 and Katherine leftwork, but later she enrolled in abookkeeping course at our localcollege because she plans to stayin finance if she returns to work.Thanks to help fromKatherine, filling out my first VATreturn hasn’t been too difficult.She’s done most of it. The taskis certainly much easier if yourbooks are well maintained.Alan found registeringfor VAT helps his cashflowObviously, I have plans to growmy business and more saleswill mean more invoices andaccounts work. And if doingsuch things as VAT returnsrequires significantly moreeffort, I might consider payinga bookkeeper.If you run or plan to run abusiness and your knowledgeof VAT rules is lacking youcould do an introductorycourse to VAT. If not, then getprofessional advice. You mustkeep on top of your obligationsif VAT rules apply to yourbusiness — it’s not somethingyou can afford to ignore or getwrong.~Blue Tube DesignBangor, North DownTel 07526 832343Email: alan@bluetubedesign.comwww.bluetubedesign.comThe No-Nonsense Guide

What VAT will meanfor youYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness planon the next VAT return afteryou charge your customer —regardless of whether they havepaid you or not. Similarly yourinput tax must be entered on thenext VAT return after you arecharged by your supplier, whetheryou have paid them or not.However, there are a numberof other accounting schemesthat may suit your business:● cash accounting● the flat-rate scheme for smallbusinesses● specific retail schemes● annual accountingIf your estimated turnoversubject to VAT does not exceed£1,350,000 a year, your businesscan use the cash accountingscheme. This may be useful ifyour customers are slow payers.You only have to record youroutput tax on your VAT returnafter your customer has paidyou and your input tax is onlyentered on your return when youhave paid your supplier.You can change to this systemat the beginning of any taxperiod. However, you must becareful to separate any outputtax or input tax dealt with underyour previous system.You do not need permissionfrom HM Revenue & Customsto use this scheme but thereare certain conditions you mustmeet, set out in Notice 731 (seeNext steps below).The flat-rate scheme for smallbusinesses is designed to reducethe time you spend accountingfor VAT. It allows you to calculateyour VAT payment as a fixedpercentage of your turnover.The percentage depends onthe type of business you are in.Businesses in the first year ofVAT registration qualify for aone per cent reduction.To be eligible for the flat-ratescheme, your estimated annualturnover subject to VAT mustnot exceed £150,000 (excludingVAT). You can apply by fillingin Form VAT 600FRS. If youuse this scheme, you will notnormally be repaid any inputtax as it is already allowedfor as part of the percentagecalculation.A selection of specialistschemes are available to retailerswho would otherwise find itimpossible or costly to complywith standard VAT accountingrules. Specialist advice isavailable from HM Revenue &Customs or your accountant.The annual accounting systemrequires one VAT return to befiled each year. You can registerfor this scheme if your estimatedannual turnover subject to VAT isnot more than £1,350,000.Under the annual accountingsystem, VAT payments based onan estimate are usually madenine times each year, with abalancing payment due whenyou submit your return. Byallowing you to pay a set amounteach month, the scheme canhelp you manage your cashflowwith more certainty — and youhave two months to submityour return rather than one.Annual accounting can be usedat the same time as the flat-ratescheme.Next steps● Visit www.nibusinessinfo.co.uk/vat● Ask your accountant orfinancial adviser if you areconsidering changing the VATaccounting scheme you use● For more information read:Cash Accounting (Notice 731);Flat Rate Scheme For SmallBusinesses (Notice 733);Retail Schemes (Notice 727);Annual Accounting (Notice732). Contact HM Revenue &Customs VAT Helpline: 0845010 9000;www.hmrc.gov.uk/vat● HM Revenue & Customs willcomplete your application forthe flat rate scheme on yourbehalf. Contact0845 010 9000VAT on importsIf your business importsgoods, there are a number ofimportant VAT rules you willneed to consider. And in somecases, you may also have topay import dutyThe regulations that governVAT on imports into the UK arecomplex and businesses shouldseek advice from HM Revenue& Customs. In general terms, VATis payable on all imports at thesame rate that would apply tothe product or service if suppliedin the UK.27The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication28You must enter on yourVAT return details of VAT ongoods acquired from withinthe European Union (EU) —including the Republic ofIreland. This is known asacquisition tax. However, youare entitled to reclaim input taxon the goods as if they weresupplied in the UK subject to thenormal rules.If you import goods worthmore than £77,000 a yearfrom other EU countries youmust register for VAT. If yourEU imports exceed £600,000you must file more detaileddeclarations, known as IntrastatSupplementary Declarations.For goods imported fromoutside the EU, import VATand duty must be paid beforethe goods are released byHM Revenue & Customs.Duty is an additional tax,based on the value of importedgoods. Duty varies according totype of product and country oforigin. In some cases no dutymay be payable. HM Revenue& Customs can advise you on therate of duty which applies to aparticular product.Duty cannot generally bereclaimed by VAT-registeredbusinesses, except where goodshave been imported underInward Processing Relief (seebelow). There is no duty ongoods which originate from anEU country (except excise goodslike tobacco or alcohol) or whichhave already been importedwith customs charges paid.For example, when goods aresupplied from the US to Belgium,duty and other taxes are paidin Belgium. Once in the EU, thegoods are in free circulation.If they later enter the UK, nocustoms charges are payable.When importing goodsfrom outside the EU, you canstore them in an approvedHM Revenue & Customswarehouse if you do not intendto sell them immediately. VATand import duty become payablewhen the goods leave thewarehouse.If you intend to re-exportthe goods outside the EU afterprocessing them, you can applyfor Inward Processing Relief. VATand duty only become payable ifyou sell the goods in the EU orfail to comply with the scheme’sconditions.If you import regularly,you can operate a defermentaccount, settling your VAT andduty monthly. You may need abank guarantee for this.Next steps● Visit www.nibusinessinfo.co.uk/customs● Further guidance about VATfor imported goods andservices is available fromHM Revenue & Customs.Contact 0845 010 9000;www.hmrc.gov.uk/vat● For more information aboutdeferment accounts, read:Deferring Duty, VAT And OtherCharges (Notice 101). ContactHM Revenue & Customs VATHelpline: 0845 010 9000;www.hmrc.gov.uk● For more information aboutIntrastat visit:www.uktradeinfo.comVAT on exportsThe value of any exports youmake — whether to countrieswithin or outside the EU —must be entered on your VATreturn. In many cases thesetransactions will be zero-ratedfor VATBusinesses in the UK that sellto VAT-registered businessesin other parts of the EU —including the Republic of Ireland— must submit details of thetransactions to HM Revenue& Customs.If you have a high levelof export trade with otherEU countries, you may haveto submit more detaileddeclarations, known as IntrastatSupplementary Declarations.If you export goods to acustomer outside the EU and areVAT-registered, the goods can bezero-rated.If you are VAT-registeredand supply goods that are sentfrom the UK to a VAT-registeredcustomer in another part of theEU, the goods can be zero-rated.The supply of some servicesto customers outside the UK isalso zero-rated, but many attractstandard-rate VAT.Complex rules surroundexports and VAT. Check withHM Revenue & Customs foradvice.The No-Nonsense Guide

All you need to know about the rules for business premises, using your home as a workplace andthe health and safety measures that you will have to adopt once your business is operationalPremises andhealth and safety30Planning consent forbusinessesIf you want to change theuse of premises or extend abuilding, you may need planningpermission from your localauthority. Any significantbuilding work must comply withbuilding regulationsPlanning permission is managedby the Planning Service. Buildingregulations are managed by thebuilding control department ofyour local authority.Special considerations applyfor people working from home(see Using your home as aworkplace, below).You may require planningpermission to change the waypremises are used — from a shopto offices, for example. Beforeleasing or buying a property,check with the Planning Servicewhether you will need permissionfor your intended use.In general, any buildingwork which significantly altersthe external appearance of abuilding — such as an extension,for example — requires planningpermission.Most significant buildingwork, such as removing internalwalls or adding extensions, mustcomply with building regulations,regardless of whether planningpermission is needed.If your building is listed asbeing of architectural or historicalinterest, you may also need toapply to the Planning Servicefor listed building consent, evenfor minor changes to décor.Unauthorised alterations to alisted building are a criminaloffence.It is advisable to check if anyof these requirements will affectyou before negotiating a lease orbuying a property.Next steps● See Ensuring easy access fordisabled people, page 32● Visit www.nibusinessinfo.co.uk/health_and_safety● The Planning Service canadvise on planning permission.Contact 028 9041 6700;www.planningni.gov.uk● Your local authority’s buildingcontrol department can adviseon complying with buildingregulations. Visitwww.buildingcontrol-ni.comUsing your home asyour workplaceThere are special rules forpeople who use their home as aworkplaceMortgage or tenancy agreementsmay prevent you from running abusiness from your home. Checkwith your lender or landlordbefore you start.You should also check withyour insurance provider to makesure you are adequately coveredfor running a business from yourhome. You may need to take outnew policies to make sure yourhome is protected.You have health and safetyresponsibilities if you work athome and you must carry out arisk assessment (see Next stepsbelow). As part of this process,you must consider the healthand safety of visitors and otherpeople in your household.If running your business fromhome means the use of thebuilding is significantly changed orhas an impact on the surroundingarea, you may need to apply forplanning permission (see Planningconsent for businesses, above).For example, your business mightcreate additional traffic or parkingin a residential road. The keyquestions you need to answer are:● Will your home no longerbe used mainly as a privateresidence?● Will your business result ina marked rise in traffic orpeople calling, or involveany unusual activities in aresidential area?● Will your business disturbyour neighbours at unreasonablehours or create other nuisances,such as noise or smells?If the answer is ‘yes’ to any ofthese questions, you will have toapply to the Planning Service forplanning permission.There are also taxconsiderations for people whowork at home. If you have setaside a room to work in and it hasno domestic purpose, you maybe liable for Capital Gains Tax ifthe property is later sold. Yourbusiness will be able to claim taxrelief on domestic bills for theareas of the house used for thebusiness.The No-Nonsense Guide

Premises andhealth and safetyCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationAdditionally, you may have topay business rates for the part ofthe property you use for work —it depends on the circumstancesof each case. You would paydomestic rates for the remainderof the property. Check for advicewith Land & Property Services.}Carry out a health andsafety induction for staffand ensure you stay on topof any changes in the law~Employers On Health AndSafety.Contact 01787 881165;www.hse.gov.ukFire protection31Next steps● See Planning consent forbusinesses, opposite● See Your business rates,page 23● Visit www.nibusinessinfo.co.uk/homeworkplace● You must check to see if yourequire planning permission.Contact the Planning Servicefor advice: 028 9041 6700;www.planningni.gov.uk● You must check with the Land &Property Services to see if youwill be charged business rates.Contact 101 or 02891 513101;www.dfpni.gov.uk/lps● You should check with yourmortgage lender, landlord and/or freeholder to see if there areany reasons why you cannotbase your business at home● You should check your taxposition with HM Revenue &Customs or an accountant● You must carry out a healthand safety risk assessmentwhen you start trading.See Carrying out a riskassessment, page 36● For more information abouthealth and safety whenworking at home, read:Risk Assessment Simplified.Contact 0800 0320 121;www.hseni.gov.ukHomeworkers: Guidance ForBrian McMahonMcMahon EngineeringA fire can have disastrouseffects. Every business needsto undertake simple steps tominimise the riskA fire risk assessment iscompulsory for almost allpremises other than privatehomes. If you control any part ofthe premises — for example, asthe occupier or owner — you areresponsible for carrying out afire risk assessment.You must take reasonablesteps to reduce the risk from fireand to ensure that people areable to escape safely if there is afire. You must:● carry out a risk assessmentand identify possible dangersand risks;● think about who might beparticularly at risk;● get rid of the risk from fire asfar as reasonably possible;● put in place fire precautions todeal with any remaining risks;● make sure there is protectionif you use or store flammableor explosive materials;● have a plan to deal withemergencies;● review your risk assessmentwhen necessary (for example,if you alter the premises).The No-Nonsense Guide

You also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan32If you employ five or more people,you must keep a written record ofyour fire risk assessment.As a minimum, you must havean appropriate fire detection andwarning system. You should thinkabout safe routes of escape andwhat fire-fighting equipment toprovide.You must provide employeeswith appropriate training so thatthey know what to do in the eventof a fire. You should carry out afire drill at least once a year.Since November 2010,businesses are no longerrequired to hold a fire certificate.Next steps● See Carrying out a riskassessment, page 36● Visit www.nibusinessinfo.co.uk/fireprotection● Read: Make Sure You're FireSafe. Contact 028 9266 4221;www.nifrs.org● You can get further guidanceon how to comply with fireregulations from the NorthernIreland Fire & Rescue Service.Contact 028 9266 4221;www.nifrs.orgEnsuring easy accessfor disabled peopleMake sure disabled people canaccess the goods and servicesyour business offers}We needed to makesubstantial changes toour premises to set upin business. Bear in mindmany landlords don't liketenants making changes totheir property~Brian McMahonMcMahon Engineeringgoods or services, who applyto work for you or whom youalready employ.If you provide services tothe public, you must make‘reasonable adjustments’ tothose services if disabledcustomers would otherwise findit impossible or unreasonablydifficult to access them.Making a reasonable adjustmentmight mean you have to:● change a policy, practice orprocedure (waiving a ‘no dogs’policy for customers withguide dogs, for example);● provide an extra aid or service(such as a hearing loop);● arrange goods on shelves sopopular items are at a rangeof shelf heights;● overcome a physical featureof your premises that makesit impossible or unreasonablydifficult for a disabled personto access your service, egby removing it, altering it,providing a reasonable meansof avoiding it or providingthe service by a reasonablealternative method.You are required to makeadjustments that are reasonablegiven the circumstances. Factorssuch as practicality and costare taken into account. What isconsidered reasonable will differbetween larger organisationsand smaller businesses withlimited resources.Next stepsYou must not discriminate against— that is, treat less favourably —disabled customers who use your● See Workers with disabilities,page 71● Visit www.nibusinessinfo.co.uk/The No-Nonsense Guide

Premises andhealth and safetydisabilities● You must review your servicesand premises with disabledaccess in mind● Contact the EqualityCommission for NorthernIreland: 028 90 890 890;www.equalityni.org● Read: Goods, facilities,services and premises - ashort guide to discriminationlaw.Contact 028 90 890 890;www.equalityni.orgManaging andtransporting wasteand packagingYour business is responsiblefor any waste it creates.Remember that good wastemanagement could save youmoneyYou must store waste safelyand securely in suitable sacks,containers or skips, making sureit does not harm the environment.All waste collected from yourbusiness must be disposed ofcorrectly using an ‘authorisedperson’ such as the districtcouncil or a waste contractor.When you hand over yourwaste, you must complete awaste transfer note clearlydescribing the waste and itsorigin and keep the note for atleast two years.Special rules apply if youdispose of hazardous waste suchas oils, acids, solvents andsolvent-based products (includingpaints) or fluorescent light tubes.A good indication that materialis covered by these rules is if ithas a hazard symbol or safetydatasheets. You must complete aconsignment note when this typeof waste is moved or disposed of.Everyone involved must retain acopy of the note, with copiespassed to the Northern IrelandEnvironment Agency.Businesses that turn overmore than £2m and handle morethan 50 tonnes of packaginga year must register with theNorthern Ireland EnvironmentAgency or join an approvedcompliance scheme. You mustprovide evidence that you arerecovering and recycling a setamount of packaging waste (acompliance scheme can do thisfor you). Handling packagingcan mean manufacturing rawmaterials used for packaging,turning these raw materials intopackaging, putting goods intopackaging, selling packaging orpackaged goods, or importingpackaging.Businesses that transportwaste, or arrange to collect ortransport waste on behalf ofothers need a licence from theNorthern Ireland EnvironmentAgency.If you manufacture electricaland electronic equipment(EEE) you must join a producercompliance scheme, mark yourgoods with a crossed-out wheeliebinsymbol, and meet recoveryand recycling targets. Sellers ofEEE must enable users to returntheir waste goods (WEEE) freeof charge when buying newreplacements — this can alsobe done through a collectivedistributor takeback scheme.Next steps● Visit www.nibusinessinfo.co.uk/environment● Envirowise gives free,independent and confidentialadvice designed to help you toreduce waste and save money.Contact 0800 585794;http://envirowise.wrap.org.uk● For advice on packagingwaste legislation, andthe management andtransportation of waste,contact the Northern IrelandEnvironment Agency:0845 302 0008;www.doeni.gov.uk/nieaOther environmentalconcernsYour business can affect peopleand property around youBusinesses that dischargewaste water from their premisesinto the sewerage system mustget consent from NorthernIreland Water.If waste water from yourpremises goes directly intorivers, streams, lakes, ponds,canals, estuaries, coastal watersor groundwater, you must applyfor a permit from the NorthernIreland Environment AgencyWater Management Unit.Businesses that cannot meettheir water needs through the33The No-Nonsense Guide

It worked for meHow Imade surewe got ourpremisesrightAaron McCracken/Harrison Photography34Brian McMahon, co-founderof McMahon Engineering,leased the most cost-effectivepremises when his businesswas starting up. But as thefirm grew he needed morespace, so has since foundnew land and premises thathave significantly helped hisexpansion efforts}When I set up the businesswith my son back in 2001we knew we had to leasesome premises because wecouldn’t afford to buy or buildour own. We needed to getthe business up and runningwithout spending too muchmoney. Our firm does a rangeof engineering work, frommanufacturing metal gatesto producing steel supportsfor buildings, so we neededenough space for a workshopbut nowhere too expensive.Initially, we leased a smallplace on the outskirts ofArmagh. Contacts in theengineering industry helped usfind a property within budget.The premises were just anopen-plan shed, so we had toput in all the wiring and installthe basics.We got an insuranceassessor in straightaway tohave a look at the place andadvise us on the cover weneeded.We also asked the Healthand Safety Executive to visit ourpremises and carry out a riskassessment. It’s essential to keepon top of your health and safetyobligations, whether it’s carryingout training that staff need orremoving the risk of trips andfalls. Because we do weldingon the premises a key safetyrequirement for us is ensuringour paint and oil supplies arestored securely — there's a firerisk if they're not.The location met our needsfor the first few years, but as webuilt up the business we grewout of it. We didn’t have enoughspace to do structural steel workand were restricted in the workwe could do until we moved.Looking back, our first premisesshould have had plenty of roomto expand, as it’s difficult topredict how much or how quicklyyour business will grow.But when we wanted to movethere was a shortage of suitablepremises in our area. We had towait and look further afield andeventually acquired the land weLooking ahead: room to expandis a priority for Brianneeded, with premises whichwere substantially larger thanwhat we had before.As it turned out, the newlocation has been good forus — it's closer to the borderwith the Republic of Irelandand has much better transportlinks, which enable us to easilydistribute our products to bothDublin and Belfast. And theincreased work space allowsus to take on bigger jobs anda greater volume of work. Wealso put in new toilets for ouremployees and a rest areawith kitchen facilities.~McMahon EngineeringCounty ArmaghTel 07881587701Email: info@mcmahonengineering.comThe No-Nonsense Guide

Premises andhealth and safetyCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationmains water supply may requirea licence and should contact theNorthern Ireland EnvironmentAgency Abstraction andImpoundment Licensing Team.Any emissions into the air thatyour business creates should bechecked with your local authorityand the Industrial PollutionUnit of the Northern IrelandEnvironment Agency.The use of ozone-depletingsubstances such as CFCs, HCFCsand halons is being phased outand restrictions cover their use,storage and disposal.Next steps● Visit www.nibusinessinfo.co.uk/environment● For more information aboutallowing waste water flow intothe sewerage system, contactNorthern Ireland Water:08457 440088;www.niwater.com● If your business dischargeswaste water into the waterenvironment contact theNorthern Ireland EnvironmentAgency Water ManagementUnit: 028 9262 3100;waterinfo@doeni.gov.uk;www.doeni.gov.uk/niea/● If your business cannot meetits water needs through themains supply, contact theNorthern Ireland EnvironmentAgency Abstraction andImpoundment Licensing Team:028 9263 3482;ail@doeni.gov.uk;www.doeni.gov.uk/niea/● If your business createsemissions into the air youshould contact the NorthernIreland Environment AgencyIndustrial Pollution andRadiochemical Inspectorate:028 9056 9296;ipri@doeni.gov.uk;www.doeni.gov.uk/niea/● Check with your localauthority if any restrictionsapply to your emissions orvisit www.airqualityni.co.ukHealth and safetyessentialsThe Health and Safety at Work(Northern Ireland) Order 1978sets out general guidelines forhealth and safety and requiresevery business to conduct arisk assessmentEmployers, the self-employedand employees all have aresponsibility to ensure thesafety of premises, equipmentand the working environmenteven if you work on your own orat home.In summary, you need toensure as far as possible yourown safety as well as that of anyemployees, visitors, contractorsand customers at your businesspremises. All employees needto be aware of their ownresponsibilities and make suretheir working environment is assafe as possible.Every business has to formallyassess the health and safetyrisks created by its workingactivities and act on the resultsof that assessment to eliminateor reduce risks (see Next stepsbelow).There are also specialrequirements if your businessdeals with dangerous substances.Next steps● See Carrying out a riskassessment, page 36● See Using your home as yourworkplace, page 30● Visit www.nibusinessinfo.co.uk/health_and_safety● Further information isavailable from Health &Safety Works NI. Contact0300 020 0030; www.healthandsafetyworksni.gov.ukMinimum workplacestandardsThere are rules designed toensure the comfort and safetyof everyone in a workingenvironmentIn any workplace there mustbe clean, working toilets. Mixedfacilities are allowed, providedthey are enclosed and lockablefrom the inside. Hot and coldwater, soap and towels or ahand-dryer must be available.There must be a supply of mainsor bottled drinking water.Working areas should becleaned and waste removedregularly, and there must besufficient space and ventilationfor people to work comfortably.Employees should have atleast 11 cubic metres each as35The No-Nonsense Guide

You also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan36a working space.The temperature should becomfortable — at least 16 degreesCelsius if people are seated or donot have to move much and atleast 13 degrees Celsius if peopleare active. If the temperaturemust be lower, people should notbe exposed to it for too long andmust wear suitable clothing. Ifyou have employees, you mustprovide this clothing.Smoking is prohibited inenclosed workplaces.Next steps● Visit www.nibusinessinfo.co.uk/health_and_safety● For more information, read:Workplace Health, Safety andWelfare. Contact the Healthand Safety Executive forNorthern Ireland:0800 0320 121;www.hseni.gov.uk● For guidance on complyingwith the smoking ban, visitwww.spacetobreathe.org.ukCarrying out a riskassessmentBy law, every business has tocarry out a risk assessment— even if you do not employanyone or you work from homeA risk assessment is a carefulexamination of what, in yourwork, could cause harm topeople, so you can weigh upwhether you have taken enoughprecautions.Risks could be caused bya range of common hazards,including:● slips, trips and falls;● working at height;● manual handling of loads;● exposure to hazardoussubstances;● high noise levels;● vibration from tools orequipment;● vehicles moving around theworkplace;● fire and explosion.The important things you needto decide are whether a hazardis significant and whether youhave it covered by satisfactoryprecautions so that the risk issmall. You need to check thiswhen you assess the risks. Forexample, electricity can killbut the risk of it doing so inan office is remote, providedlive components are insulatedand metal casings are properlyearthed.If your business has relativelyfew risks, you can carry out theassessment yourself.Businesses with morecomplicated health and safetyrequirements (using chemicalsor manufacturing, for example)may find it useful to have theassessment carried out by aspecialist.There is no need for the riskassessment to be written downunless you employ more thanfour people.If you are responsible for themaintenance of your premises,you have a duty to identify andmanage any asbestos-relatedrisks in your workplace.Next steps● Visit www.nibusinessinfo.co.uk/health_and_safety● Read: Risk AssessmentSimplified. Contact the Healthand Safety Executive forNorthern Ireland: 0800 0320121; www.hseni.gov.ukRegistering yourbusinessYou may need to register withhealth and safety authoritiesSince April 2009, mostbusinesses no longer need toregister with the Health andSafety Executive for NorthernIreland. If you work withhazardous substances or in ahazardous industry, you shouldcheck (see Next steps below).Some businesses may needto register with their localauthority. This includes foodbusinesses and services suchas acupuncture. Your localauthority can advise you onany registration or licensingrequirements applying to yourbusiness.Next steps● Check if your business needsto be registered with theHealth and Safety Executivefor Northern Ireland (HSENI)or your local authority.Contact 0800 0320 121;www.hseni.gov.ukThe No-Nonsense Guide

Premises andhealth and safety● A list of local authoritywebsites and phone numberscan be found atwww.direct.gov.uk● See Is your business in aspecialised sector?, page 46Insuring youremployeesYou must insure againstclaims arising from illnesses,diseases or injuries your staffmay pick up as a result ofworking for youEmployers’ liability insurance,which protects your businessagainst claims from employeesfor accidents or sickness theymay suffer as a result of workingfor you, is a legal requirement.The statutory minimum cover is£5m and you should display thecertificate in any place of work.Keep your certificates even afterthey have expired — employeescould make a claim many yearsafter they have worked for you.Next steps● Visit www.nibusinessinfo.co.uk/insurance● Read: Employer's Liability(Defective Equipment AndCompulsory Insurance)(Northern Ireland) Order1972: A Guide For Employers.Contact the Health andSafety Executive for NorthernIreland: 0800 0320 121; www.hseni.gov.uk}Ensure you have theright insurance in placewhen you set up inbusiness. Employers'liability insurance is alegal requirement~Brian McMahonMcMahon EngineeringInforming your staffabout health andsafetyIf you have staff, you need ahealth and safety policy andyou must keep employees upto date and involved with yourhealth and safety proceduresYou must have a health andsafety policy, and if you havemore than four employees itneeds to be in writing. This policymust be made easily availableand revised regularly, particularlywhenever the physical natureof your workplace changes. Youmust also have procedures inplace in case of fire or otheremergencies.You should either display theposter Health and Safety Lawin Northern Ireland in any placeof work, or give employees thesame information in a leaflet orpocket card. It is available fromHSE Books, The Stationery Officeand book shops.You must give employeesinformation about risks to theirhealth and safety and aboutthe preventive measures thatare in place to control risks. Allemployees also have a rightto be consulted on health andsafety issues that may affectthem.If you do not oversee healthand safety in your business, youmust appoint someone to doso. They will need to be awareof all relevant law and industrystandards that exist and youmust give them the authority to37The No-Nonsense Guide

38implement the health and safetypolicy.Next steps● Visit www.nibusinessinfo.co.uk/health_and_safety● The poster ‘Health and SafetyLaw in Northern Ireland’ andpocket cards can be orderedfrom HSE Books (01787881165; www.hsebooks.com)or The Stationery Office(028 9023 8451;www.tsoshop.co.uk)● For more information,read: An Introduction ToHealth And Safety. ContactHealth and Safety WorksNI: 0300 020 0030; www.healthandsafetyworksni.gov.ukProtecting youremployeesThere are specific regulationsthat help businesses minimisethe risks of accidentshappeningYou must check and maintainall equipment on a regular basisto ensure that it complies withthe necessary safety regulations.You must keep certificates toshow certain types of equipmenthave been tested.You also have a duty toassess the risks to youremployees if their job involvesheavy loads or repetitivehandling of objects. Potentiallyhazardous handling operationsneed to be identified andappropriate actions put in placeto reduce the risk of injury.Providing suitable first-aidfacilities is compulsory andstaff need to know where anyfirst-aid boxes are located. Youneed to nominate someone tobe responsible for restockingfirst-aid boxes and to take chargein an emergency (and call anambulance if necessary). Youshould carry out a first-aid needsassessment to see whether thisperson ought to hold a first-aidcertificate.You must supply all employeeswith suitable protective equipmentfor their job, if risks to their healthand safety cannot be controlledin other ways. You must notcharge employees for protectiveequipment they require.Protective equipment shouldbe maintained to a high standard,stored appropriately anddiscarded once it is no longereffective. Personal protectiveequipment includes protection forthe body, head, eyes, feet, handsand arms. This includes goggles,hard hats, safety boots, hairnets,crash helmets, gloves, overallsand aprons.Precautions should beput in place to minimiseyour employees’ exposure tohazardous substances. Staff whowork or will work with potentiallydangerous substances need tobe informed of hazards, fullytrained and made aware of theirhealth and safety duties.There are other rules thatapply to specific types ofbusiness or business activity.Check with the Health and Safety}Plan any move in detail anddon't underestimate theamount of time it will take.You may lose trade if youcan't keep supplying yourcustomers during the move~Brian McMahonMcMahon EngineeringThe No-Nonsense Guide

Premises andhealth and safetyCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationExecutive for Northern Ireland.Next steps● Visit www.nibusinessinfo.co.uk/health_and_safety● For more information contactHealth and Safety WorksNI: 0300 020 0030; www.healthandsafetyworksni.gov.ukComputers andemployeesYou have to make sure you andyour employees use computerssafely. As well as checking thatmonitors and keyboards allowusers to work comfortably,you should give users regularbreaks and carry out riskassessmentsVisual display units (VDUs)or monitors must show clearcharacters with adequatespacing and the screen imagemust be stable with no flickering.Users should be able to adjustthe brightness and contrasteasily. The screen must tilt andswivel and be free of reflectedglare.The keyboard must be tiltable,and separate from the screen(unlike most laptops), allowinga comfortable working positionand avoiding fatigue in the armsor hands.The work chair must be stable,with height adjustment, and theseat back must be adjustable inboth height and tilt.Workstation and workplacelayout should be planned toprevent possible disturbing glareor reflections on the screen fromsources of light such as windows.Workstations should give theuser sufficient space to changeposition and vary movements.Training must be given tousers on health and safety andhow to use software.Employers must plan theactivities of users so that theirdaily work on display screensis periodically interrupted bybreaks or changes of activity. Itis recommended that users takeintervals away from screens atleast every two hours.Employees using computersare entitled to eyesight tests paidfor by you at regular intervals orwhen they are requested.You must carry out regularrisk assessments on computerworkstations and the peoplewho use them to ensure theyare safe. You need to assess theentire workstation (includingequipment, furniture and its workenvironment), the work beingdone on the computer and anyspecific needs of the staff usingthe workstation. Pay particularattention to users’ posture. Youmust take steps to reduce anypotential health risks you find.Next steps● You must carry outworkstation health checksand take any steps necessaryto minimise any risk toemployees’ health when usingcomputers● For more information read:Working With VDUs (INDG36).Contact 0800 0320 121;www.hseni.gov.ukReporting incidentsThe Reporting of Injuries,Diseases and DangerousOccurrences Regulations(RIDDOR) require you to reportand keep records of accidentsand other workplace incidentsIf there is a serious injury, death,work-related disease or otherdangerous incident in yourworkplace, you must report it tothe Health and Safety Executivefor Northern Ireland or your localauthority.Reportable injuries includemajor injuries such as brokenbones or loss of consciousness,as well as less severe injuriesthat result in someone beingaway from work or unable tocarry out their normal duties formore than seven days.You must also keep recordsof any reportable occurrence forthree years.Next steps● Visit www.nibusinessinfo.co.uk/health_and_safety● You must keep an accident book● Further information isavailable from the Health andSafety Executive for NorthernIreland: 0800 0320 121;www.hseni.gov.uk39The No-Nonsense Guide

All businesses own assets called intellectual property, which can include the name of the businessor copyright, designs, patents and trade marks. Intellectual property can be worth money. Sometypes have automatic legal protection. Others can be protected by registration. You must also beaware of and respect other businesses’ intellectual propertyProtecting yourintellectual property40Business namesand domain namesThe name of your businessis generally protected bythe common law principle ofpassing offPassing off can occur if yourbusiness name has, throughuse, established a reputation fortrading in a particular field and acompetitor starts using the sameor a similar name for the sameor similar goods and services.You can take court action on thebasis that your rival is falselypassing off their goods orservices as yours.Sometimes duplication ofnames is caused by genuineoversight and may be settled bynegotiation, but you should seeklegal opinion at an early stage.A domain name (your websiteaddress) has to be registered foruse on the internet. Nominet UKis the registry for .uk internetnames and also provides adviceon registering and maintainingyour internet name.If you believe that somebodyelse has registered yourbusiness name, brand nameor registered trade mark asa domain name, and that thisconstitutes an infringement of atrade mark or an act of passingoff, you should seek a qualifiedlegal opinion.Nominet UK cannot offerlegal advice but it may be able,through its Dispute ResolutionService, to help if a disputearises over a domain name. Thismight avoid your having to go tocourt.Next steps● See Choosing the right name,page 8● Visit www.nibusinessinfo.co.uk/nameandtrademark● It is best to get legal adviceat an early stage if you thinksomebody else is using yourbusiness name or trade mark,or something close to it, eithergenerally or as an internetdomain name● Nominet UK can give adviceon domain names and theirregistration. Contact01865 332211; www.nic.uk● Check availability of domainnames with Nominet UK atwww.nic.uk or NetNames atwww.netnames.co.ukProtecting yourtrade marksTrade marks are symbols,signs or even words, soundsor shapes which distinguishthe goods and services of onetrader from those of othersTrade marks help customers andother businesses recognise abusiness and identify it with thequality of product or service forwhich it is known.They are often the singlemost valuable marketing toola business will have, whateverits size, and can be essential indeveloping a brand.Trade marks do not need tobe registered. Provided sufficienttrading reputation and goodwillhave been built up in a mark, adegree of protection is affordedby common law.For a court action based on anunregistered mark to succeed,you have to show that the markembodies a reputation and thatits use by somebody else is liableto confuse or deceive the publicand has done actual damage toyour business.Registration of a trade markgives an immediate right to stopsomeone using the same or asimilar mark on the same orsimilar goods and services. Youdo not have to prove reputationor demonstrate confusion.Owners of trade marks areadvised to register the trademark with the IntellectualProperty Office where thisis possible. A trade mark isregistered for ten years andcan be renewed every tenyears. Once registered it can berenewed indefinitely.Registered trade marks canbe enforced by going to court.You can pursue damages andan injunction to stop furtherinfringement.Next steps● Visit www.nibusinessinfo.co.uk/intellectualproperty● For more information abouttrade marks, contact Invest NI:www.investni.com● The Intellectual PropertyOffice provides furtherguidance on its website andwill answer your questions onThe No-Nonsense Guide

Protecting yourintellectual propertyCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationhow to protect your ideas orfind out about other people’sintellectual property rights.Contact 0300 300 2000;www.ipo.gov.uk● Check that any product orservice you are planning tooffer does not infringe anyexisting rights. Penalties canbe severe, whether the breachis deliberate or not. Trademarks, registered designs andpatents can be checked onlineat the Intellectual PropertyOffice website. Visitwww.ipo.gov.uk● A trade mark attorney canprovide professional paid-foradvice. Contact the Institute ofTrade Mark Attorneys at020 7101 6090;www.itma.org.uk● Members of the CharteredInstitute of Patent Attorneyscan also advise you.Contact 020 7405 9450;www.cipa.org.ukPatents and theirbenefitsPatents protect yourinventions and prohibit othersfrom making, using or sellingan invention without theinventor’s permissionPatents, which are registeredat the Intellectual PropertyOffice, are concerned with thefunctional and technical aspectsof products and processes.The invention could be a newproduct, a new process, a new}My idea and product areunique, that's what makesthem valuable~Ian ElliotTap Strapapparatus for performing aprocess or possibly a new usefor a known product. Patentedinventions can simply beimprovements on an earlierinvention.You are not obliged to applyfor a patent to protect yourproduct or processes — you couldrely on keeping the informationconfidential. But without a patentyou would lack the right to stopothers from making, selling orimporting the product or processyou have developed.Patents, which can protectyour invention for a maximumof 20 years, can be a valuablecommercial asset.● By preventing competitorstrading in products or usingmethods covered by thepatent, patent owners canget premium prices for theirproducts.● The patent owner can earnroyalties by licensing productsthat use the patent.● Patents can be bought andsold like any other asset.Patents are enforced by legalaction. You can get damagesand an injunction to stop furtherinfringement.Next steps● Visit www.nibusinessinfo.co.uk/intellectualproperty● For more information aboutpatents, contact Invest NI:www.investni.com● The Intellectual PropertyOffice provides furtherguidance on its website andwill answer your questions on41The No-Nonsense Guide

It worked for meHow IprotectedmybusinessideaMarie Therese Hurson/Harrison Photography42Tap Strap is a locking deviceborn of a desire to reducechild-scalding accidents.Electronics design engineerIan Elliot explains how afteralmost three years’ researchand development, he finallymade his patent application} I conceived the Tap StrapSafetyconcept after meeting amother whose young childhad suffered horrific scaldinginjuries. Some basic researchsuggested there were noexisting devices that preventedchildren turning on bath taps.Although I came up withthe Tap Strap concept in mid-2007, I didn’t file my patentapplication until March 2010and I got help from a patentattorney. A licence agreementfor the product was signed sixmonths later.Tap Strap is a part-timeventure. My day job is in theR&D department of a largeelectronics company in Antrim.My idea and product areunique. That’s what makesthem valuable, and potentiallymeans others might try toencroach on my design. TapStrap is protected throughoutEurope, which means I can actagainst any company that triesto bring a device to marketwhich works in the same way.Between 2007 and 2009,I spent hours developingprototypes. Early on, I wasaccepted onto the InvestNorthern Ireland’s BusinessInnovation Link (BIL) programme[now closed], and a patentattorney’s opinion showed thatalthough my first concept was anew product, the method wasn’tnovel enough for a patent.More thinking gave riseto what was to become theTap Strap. I produced moreprototypes and finally had a solidplastic version. The concept wassufficiently novel for a patentapplication.To realise the concept thestrap needed to be made froman elastic material. I created amould from my 3D plastic modeland baked a resin Tap Strap – inour oven at home.Fortunately, the BIL programpaid for the initial patentapplication. The process is stillnot finished – it may be anothertwo years before the patent isfinally granted. To date, it’s costa few thousand pounds, but like Isay, I’ve had some assistance.The application is for theEU. When the process nearsfirst: Ian's uniquedesign is worth protectingcompletion, I’ll have to choosewhere I want to have itenforceable – guided by howTap Strap is selling in eachof those places. The patentpending coverage allows me tolicense the product.~Tap StrapTel 07717 706031E-mail info@tapstrap.co.ukwww.tapstrap.co.ukThe No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication44Registered designand design rightYou can protect the designof the outward shape orconfiguration of products, andpatterns and ornamentationDesign right, an automaticright like copyright, and designregistration give the ownerthe right to stop other peoplemaking, using or selling the sameor similar designs.The appearance of a product’soutward aspect may be crucialto its market success or failure,whatever its other attributes.A registered design isa monopoly right for theappearance of the whole orpart of a product, resultingparticularly from the features oflines, contours, colours, shape,texture and materials of aproduct or its ornamentation.These designs could beanything from patterns ontextiles or plates to the shape ofa car or part of a product, suchas a kettle handle.Design right is lessextensive, protecting just shapeand configuration but notornamentation.A registered design, whichrequires an application to theIntellectual Property Office, alsoprovides stronger protectionthan design right.A registered design lasts forfive years initially and may beextended over four five-yearperiods up to a maximum of 25years. Design right lasts for tenyears from first marketing up toan overall limit of 15 years fromfirst creating the design.An application for designregistration requires just a fewpictures showing different views ofthe design and some informationabout how the design might beapplied. The design’s creation mustinvolve ‘freedom of design’ — so if ajug has a distinctive shape it can beregistered because it could have avariety of shapes and still be a jug.Remember that legallylicensing your design ideas toother users can be an importantsource of revenue.Next steps● Visit www.nibusinessinfo.co.uk/intellectualproperty● For more information aboutprotecting your designs,contact Invest NI: www.investni.com● The Intellectual PropertyOffice provides furtherguidance on its website andwill answer your questions onhow to protect your ideas orfind out about other people’sintellectual property rights.Contact 0300 300 2000;www.ipo.gov.uk● Check that any product orservice you are planning tooffer does not infringe anyexisting rights. Penalties canbe severe, whether the breachis deliberate or not. Trademarks, registered designs andpatents can be checked onlineat the Intellectual PropertyOffice website. Visitwww.ipo.gov.uk● Patent attorneys, membersof the Chartered Institute ofPatent Attorneys, provideprofessional paid-for adviceon designs. Contact 020 74059450; www.cipa.org.ukIntellectual propertyprotection overseasProtection of trade marks,patents, copyright anddesigns becomes morecomplicated if you wantto tap into foreign markets orprotect your rights abroad. TheIntellectual Property Office canadvise youTrade marks are territorial; aUK trade mark offers protectiononly within the UK. There arethree routes to secure protectionoverseas for your trade mark:● a series of individual trademark applications filed ineach country in which you areseeking protection;● for protection in all EuropeanUnion countries, applyingfor Community Trade Markregistration at the Office forHarmonisation in the InternalMarket (OHIM);● an application to theWorld Intellectual PropertyOrganisation (WIPO) inGeneva to obtain trade markregistration in a number ofcountries across the world.Patents are similarly territorial; aUK patent offers protection onlywithin the UK.The No-Nonsense Guide

Protecting yourintellectual propertyAt present there is no suchthing as a world patent, and toget protection abroad there arethree choices:● separate national applicationscan be made in each countryin which you are seekingprotection;● the European PatentConvention, under whichprotection can be obtainedin one or more Europeancountries by a singleapplication to the EuropeanPatent Office;● the Patent CooperationTreaty, which includes mostof the major industrialisedSoftware copyright and licencesWhen using software youmust comply with theconditions of the licenceand the software publisher’scopyright. Do not makeillegal copies or use softwareon more computers than thelicence allowsYou must not breach thelicence of any computersoftware you use in yourbusiness. The licence setsout the software publisher’sconditions for your use of thesoftware.You also must not commitsoftware ‘piracy’ by doingthings such as making illegalcopies.Software offences include:● making or selling illegalcopies of software;● installing or using illegalcopies, even unknowingly;● allowing a consultant toinstall unlicensed softwareon your system;● using legally acquiredsoftware on morecomputers than the licenceallows (the licence will statethe number of computerson which you may use thesoftware; unless it statesotherwise, you may only useone copy of the softwareon one computer - however,many licences allow you toretain up to two copies forback-up purposes)● allowing employees toinstall unlicensed softwareon your system;● allowing employees orbusiness contacts tomake unlicensed copies ofsoftware;● using software forcommercial purposes whenit is provided free or at areduced price for academicor personal use.Next steps● For more information onsoftware piracy andlicensing contact theFederation Against SoftwareTheft (0845 521 8630;www.fastiis.org) or theBusiness Software Alliance(ukinfo@bsa.org;www.bsa.org/uk)countries and simplifies filingprocedures if protection isrequired in more than one ofthe member states.Copyright is automatic in manycountries, though you may needto mark your work with the© symbol, your name and theyear of publication. However,copyright is not widely respectedin some countries, and makingclaims through a court in thosecountries can be difficult.Through OHIM a RegisteredCommunity Design providesa single registered rightgiving design protection inall EU countries. A numberof other countries (mainlyCommonwealth) recognise UKregistereddesigns without theneed for local registration.Next steps● Visit www.nibusinessinfo.co.uk/intellectualproperty● The Intellectual PropertyOffice provides furtherguidance on its website andwill answer your questions onhow to protect your ideas orfind out about other people’sintellectual property rights.Contact 0300 300 2000;www.ipo.gov.uk45The No-Nonsense Guide

As well as the general regulations that all enterprises must comply with, many businesses— from childminders and sandwich-bar owners to taxi drivers — are affected by specific regulationsand sometimes need special licencesIs your business in aspecialised sector?46Food businessesIf you run a business whichmakes, handles or sells food,you must comply with hygienerules to make sure the food issafe to eatFood businesses must meet arange of requirements relating tothe design of their premises, theway staff handle food and thetemperature at which food is kept.Food businesses must registerwith their local authority atleast 28 days before they begintrading. They must also providedetails of any premises used forstoring, selling, distributing andpreparing food — from cafés,restaurants and market stalls tofacilities in the home and fooddeliveryvehicles.Some other types of foodbusiness must be approved orlicensed before they begin trading(such as butchers’ shops).Businesses selling packagedfood to consumers or to otherfood businesses must includecertain information on thepackaging.There is a range of productspecificregulations you mayhave to comply with. Thesegenerally affect manufacturersof animal-based products suchas dairies. Contact your localauthority’s environmental healthdepartment for guidance.Next steps● For more information aboutfood law, contact the FoodStandards Agency:028 9041 7700;www.food.gov.uk● The Food Standards Agencyproduces Starting Up: YourFirst Steps To Running ACatering Business and a rangeof Safer Food, Better Businesspacks to help you managefood safety. Contact 028 90417700; www.food.gov.uk● The environmental healthdepartment of your localauthority can advise onspecific food-related issues— contact it early if you areconsidering setting up afood business. A list of localauthority websites and phonenumbers can be found atwww.direct.gov.uk● For more information, read:Food Hygiene: A Guide forBusinesses. Contact 028 90417700; www.food.gov.ukEntertainment andleisureBusinesses which sell alcoholor provide entertainment orleisure services to the publicoften need a licencePublic houses, restaurants,nightclubs, hotels, shops andother establishments sellingalcohol must get a licence fromtheir local county court.Cinemas, theatres, indoorsports venues, night clubsand any type of establishmenthosting public entertainmentevents have to apply to theirlocal authority for a licence. Feesvary, depending on capacity andtype of entertainment.Next steps● To find your nearest countycourt, contact the Courts andTribunals Service: 028 90328594; www.courtsni.gov.uk● Links to all local authoritywebsites can be found atwww.direct.gov.ukHealth and careservicesChildminders, care homes andother businesses that lookafter people have to registerwith the relevant bodyBoarding schools and residentialspecial schools should contactthe Department of Educationand the Regulation and QualityImprovement Authority (RQIA).Further education collegesshould contact the Departmentfor Employment and Learning.Most health and social careservice providers must registerwith the RQIA. These include:● children’s homes;● day care settings;● independent clinics;● independent hospitals;● nursing homes;● residential care homes;● domiciliary care agencies;● adult placement agencies;● nursing agencies.Childminders must register withThe No-Nonsense Guide

Is your business in aspecialised sector?Check for changes in the lawRegulations, figures and sumsof money may have changedsince publicationtheir local Health and Social CareTrust.Businesses that pierce theskin (such as tattooing, cosmeticpiercing and acupuncture) mustgenerally get a licence from theirlocal authority’s environmentalhealth department.Next steps● To find your local Health andSocial Care Trust, visitwww.hscni.net● Contact the Department forEmployment and Learning:028 9025 7777;www.delni.gov.uk● Contact the Department ofEducation: 028 9127 9279;www.deni.gov.uk● Contact the Regulation andQuality Improvement Agency:028 9051 7500;www.rqia.org.uk... andmany otherspecial casesMany other businessesrequire licences orregistration and mustconform to regulationsgoverning their operationsThese pages give an outlineof some of the specialrequirements applying tobroad sectors to help youconsider whether your plannedbusiness might be affected.But there are many otheractivities that are regulated— from manufacturing,farming, boarding kennelsand street trading to moneylending and handling asbestos.Next stepslicence, depending on where youare transporting the goods andfor whom you are carrying them.For safety reasons strict rulesalso cover the transport of arange of hazardous materialswhich could be poisonous,flammable, explosive orcorrosive.Businesses which transportpeople by road for reward arerequired to hold either a TaxiDriver’s Licence (for vehiclescapable of carrying up to eightpassengers) or a Road ServiceLicence (for vehicles capableof carrying more than eightpassengers).Strict rules also apply to bothgoods- and passenger-carryingvehicles on maintenance, thenumber of hours drivers maywork and how these hours arerecorded, and the type of drivinglicence needed.The DVA can advise onoperating commercial vehicles.47Transport businessesBusinesses that transportgoods or people for rewardnormally need a licenceBusinesses which transportgoods using a motor vehicleallowed to weigh more than3.5 tonnes when fully loadedneed an operator’s licence fromthe Road Transport Licensingdivision of the Driver and VehicleAgency (DVA). This applies evenif you have hired the vehicle orif you are transporting goods forjust one day.There are different types of● Visit www.nibusinessinfo.co.uk/sectors for informationon your business sector● Contact your localauthority’s environmentalhealth officers● Check whether yourbusiness is affected byspecial regulations. ContactInvest NI: www.investni.com● For credit licences (formany activities, fromlending money to hireservices) check with theOffice of Fair Trading:08457 224499;www.oft.gov.ukNext steps● Businesses operatingcommercial vehicles or taxisand private hire vehiclesshould contact the Driver andVehicle Agency (DVA):0845 402 4000;www.dvani.gov.ukThe No-Nonsense Guide

Selling correctly, getting paid on time and properly storing and using information about otherpeople and businesses are covered by some straightforward rules designed to make sure you actresponsibly and get a fair deal for yourself and your customersTrading regulationsand data protection48Unfair tradingMisleading descriptions ofthe goods and services yourbusiness provides or unfairmarketing and sales practicesare prohibitedDescriptions of your goodsmust not be misleading.The rules cover descriptionsgiven orally, in writing (in anadvertisement or brochure, forinstance) or as an illustration(perhaps in an advertisementor on packaging).You must deal with consumersfairly and honestly. Unfairpractices which are likelyto harm the interests of theaverage consumer are notallowed. These include:● conduct that fails to meet thestandard of honest marketpractice and acting in goodfaith;● misleading practices (suchas leaving out importantinformation);● aggressive sales tactics.Various unfair tactics arespecifically prohibited, including:● falsely claiming accreditation(eg, pretending that you areregistered with a trade bodywhen you are not);● advertising a product at aprice that you know you willnot be able to honour orwith the intention of sellinga different (more expensive)product;● phony competitions;● pyramid selling schemes;● refusing to leave a consumer’shome when asked to orpestering someone withpersistent phone calls oremails.Next steps● Visit www.nibusinessinfo.co.uk/tradingstandards● For more information, read:Consumer Protection FromUnfair Trading Regulations2008. Contact 0300 123 6262;www.detini.gov.uk/deti-consumer-indexTerms and conditionsof saleWhen a customer purchasesgoods or services from yourbusiness, you are entering intoa legal contractBy displaying priced goods ina shop or window display, in abrochure or on a price list, youare inviting customers to makeyou an offer for the goods —which you can either accept orrefuse. A contract is normallyformed when payment is made.At this point you and yourcustomer have made formal legalcommitments to one another —though this may not be the casein distance-selling arrangements.The contract cannot be cancelledwithout both parties' consentunless either party is in breachof contract (although there is acooling-off period for distancesales — see Next steps below).If, before a contract is formed,you make factual claims about aproduct or service which turn outto be untrue, and the customercan show they have basedtheir decision to buy on theserepresentations, they may be ableto make a claim against you.Certain terms are implied inevery transaction for the sale andsupply of goods. The goods must:● match any description givenof them;● be of satisfactory quality;depending on thecircumstances, this couldcover aspects such assuitability for their intendedpurpose, appearance andfinish, freedom from minordefects, safety and durability;● be fit for their purpose; thepurpose for which goods willbe used may be obvious (apen, for example); but if acustomer expressly indicatesthey want to use goodsfor a particular purpose,the goods must meet thisrequirement and you must tellthe customer if you doubt thegoods’ suitability.If the goods do not meet theseconditions, customers can rejectthe goods and demand a fullrefund provided they have notaccepted the goods. Acceptanceis signified by them telling youthey have accepted the goods(they must have had the chanceto examine them first), alteringthem in some way or keepingthem for a reasonable lengthof time (this varies accordingto the nature of the goods). Butthey are not considered to haveThe No-Nonsense Guide

Trading regulationsand data protectionCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationaccepted goods if they allow youto repair them when they arefirst found to be faulty. Whengoods have been accepted thecustomer cannot reject them.But the customer may still beentitled to some compensation.If the goods are faulty, thecustomer can ask for a repair orreplacement. If neither of theseis feasible the customer can thenask for a full or partial refund.Customers have no rights inrelation to defects brought totheir attention before a sale orif they examined the goods andany defects would have beenreadily noticeable. Neither canthey complain if they changetheir mind (unless the contractwas concluded at a distance:see Next steps below), damagethe goods themselves or ignoreyour advice about the product’ssuitability.Services have to be carried outwith reasonable skill and care, fora reasonable price (unless a pricehas already been agreed) andwithin a reasonable time (unlessa date was agreed at the time thecontract was made).You must not try to restrictconsumers’ statutory rights orimpose contract terms which tryto exclude or limit your liabilityfor death or personal injuryresulting from your negligence.In contracts with otherbusinesses (but not consumers)you may be able to excludeor limit your liability for anyother types of loss or damageresulting from negligence — butyou will have to show that this isreasonable.Your standard terms are}When you collect or storecustomer information, youmust comply with dataprotection rules. That mayinclude having to notify theInformation Commissioner~Oscar WoolleySuki Teathose you decide in advancerather than negotiate with anindividual consumer. They do nothave to be in writing, but youshould usually include them inthe ‘small print’ on the back oforder forms, bills and so on. Theyshould be expressed in plain andeasily understandable languageand customers should have anopportunity to read them beforeentering into a contract.If one of these standard termsis unfair, a consumer will notbe bound by it. However, thisdoes not cover terms which setthe price (provided they are inplain and easily understandablelanguage), terms which tell youwhat you are and are not gettingfor your money or terms whichmust be included in the contractby law.An unfair term is one which isnot made in ‘good faith’ and whichputs consumers at a disadvantageby — for example — imposingunfair penalties, restrictions orobligations or making it unclearwhat they have to pay.Potentially unfair termstypically involve one or more ofthe following problems:● limiting or excluding thevendor’s legal obligations;● limiting or excluding theconsumer’s legal rights;● imposing excessive financialpenalties on the consumer;● allowing the vendor to retainpre-payments if the contract iscancelled;● binding the consumer tohidden terms;● allowing the vendor to changethe terms after they havebeen agreed (forcing the49The No-Nonsense Guide

It worked for meHow I meetmy legalobligationswhen sellingonline50Oscar Woolley started SukiTea, based in West Belfast,with his friend Anne Rooneyin March 2005. They nowboast customers throughoutthe world and Oscar explainshow they meet their legalresponsibilities when sellingonline and why it's been goodfor business} Originally we planned toOnlineopen a teahouse, but realisedwe’d enjoy more success byselling our exclusive teas tocafés, restaurants and hotels.Naturally, we realised we couldsell more if we made ourproducts available online.We didn’t start selling onlineuntil 2006 because it tooka while to sort out. Onlinesales now account for about15 per cent of our turnoverbut we expect this figure torise considerably becausewe’re launching a new websiteand have been working witha consultant to find ways tomaximise our online presence.Most of our customerslive in the UK but we sellthroughout the world — weeven have a customer in Iraq.There are legalrequirements when yourbusiness sells online somake sure you display all theinformation you're legallyobliged to on your website.You'll also need a shoppingcart function on your siteto collect payments, as wellas a secure method by whichcustomers can enter theirdetails. Setting up our merchantaccount wasn’t difficult. Wereceived advice from our sitedesigner and spoke to our bank,which specialises in merchantaccounts.Because we were new torunning a business we had tocarry out a lot of research andseek advice. We did an Invest NIcourse that provided lots of help,including advice about settingup a website and complying withe-commerce rules.When you collect or storecustomer information youmust comply with dataprotection rules. That mayinclude having to notify theInformation Commissioner,which is what we had to do.You must store informationsecurely and use it only for thepurpose you gathered it. Weplace great importance ononline security, and pay a lot ofmoney for it.As well as generating newinfusion: Suki Tea profitsfrom selling products onlinebuyers, we want existingcustomers to keep comingback. For that to happen,people must have confidencein your ability to safeguardtheir details and useinformation properly. It’s notjust about making sure youdon’t break the law, it’s alsoabout giving your customerscomplete faith in your businessand added peace of mind whenthey buy from you online.Complying with onlineselling rules isn’t difficult,especially if you seek advice,which needn’t even cost youanything. The information isout there.~Suki TeaBelfast, County AntrimTel 028 9033 0938www.suki-tea.comThe No-Nonsense Guide

Trading regulationsand data protectionYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness planconsumer to accept a differentproduct, a higher price or areduction in their rights, forexample);● imposing unreasonablerestrictions or obligations onthe consumer;● being unclear or difficult toread.Next steps● See Unfair trading, page 48● Visit www.nibusinessinfo.co.uk/tradingstandards● Further advice is availablefrom Trading Standards.Contact 0300 123 6262;www.detini.gov.uk/deti-consumer-indexSpecial rules forshopsShops must comply with anumber of rules in additionto the regulations laid downby consumer-protectionauthorities detailed aboveYou may need a licence,dependent upon the type ofretail business you choose to run.Pet shops, sex shops and streettraders must apply to their localauthority for a relevant licence.Licence fees vary. Restaurants,shops and mobile shops sellingfood, and businesses that piercethe skin (including tattooing,acupuncture, cosmetic piercingand electrolysis) generallyneed to register with their localauthority environmental healthdepartment or apply to it for alicence.If your retail business will lendmoney, offer or arrange credit,or hire, lease or rent out goods,you will probably also require aconsumer credit licence, issuedby the Office of Fair Trading.These cost £1,225 (£585 for soletraders).You must clearly mark theprice of the products you sell,whether this is in a shop or viadistance sales such as mailorder. Prices may be markedeither on the product itself orclose to it, so a consumer caneasily see and understand them.They must be unambiguous,easily identifiable and clearlylegible. Consumers should nothave to ask for assistance to seethe prices.In some cases, as well asdisplaying the selling price, youmust show the unit price. Thisapplies to unpacked goods suchas loose fruit and vegetables,and to goods which are packagedin varying quantities — such asblocks of cheese of differentweights. The unit price isusually the price per kilogramor per litre.Some loose goods can be soldby number as well as by weight.For instance, you can sell appleseither by the kilogram or for acertain price per apple.Large shops — 280 squaremetres or more — must alsodisplay unit prices for packagedgoods.Prices shown must be insterling and inclusive of VAT andany other taxes.The price-marking regulationsdo not apply to services orproducts supplied as part of aservice (such as shampoo usedby a hairdresser).Next steps● See Unfair trading, page 48● See Terms and conditions ofsale, page 48● Visit www.nibusinessinfo.co.uk/fairtrading● The rules on price marking canbe complicated. Further adviceis available from TradingStandards. Contact028 9025 3900; www.detini.gov.uk/deti-consumer-index● More information about creditlicences is available from theOffice of Fair Trading.Contact 0800 389 3158;www.oft.gov.ukDistance sellingThere are some extra rulesif you sell goods or servicesto consumers by mail order(including catalogue shopping),phone, fax, internet or digitalTV. But they do not apply tocontracts with other businessesor for financial servicesConsumers must be providedwith clear and comprehensibleinformation to help them decidewhether to buy. You must makeclear:● your business’s name and,if payment is required inadvance, your postal address;● a description of the goods or51The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication52services;● the price, including all taxes;● delivery costs if applicable;● arrangements for payment;● arrangements and datefor delivery of goods orperformance of services(within 30 days of the order ifno date is specified);● information about the right tocancel the order;● how long the price or offerremains valid;● the minimum duration of acontract to supply goods orservices continuously (egmobile phones) orrecurrently (such as a monthlybook club);● the cost of any premium-ratelines customers have to use.You must also specify if you wantto offer substitute goods if thoseordered are not available and, ifthis is the case, make it clear youwill meet the costs if any suchgoods are returned.When an order has beenplaced, you have to provide thecustomer with confirmationof this information by durablemeans such as post, fax or email,unless they have already beengiven it (in an advertisement orcatalogue, for instance).You must also includeinformation on when and howthe customer can cancel theorder, who will be responsible forthe costs if goods are returned,a full postal address where theycan contact you and details ofany after-sales services andguarantees. This has to be done— at the latest — by the timegoods are delivered or, for aservice, before or at an earlystage during its performance.With some exceptions, thecustomer has a cooling-offperiod of at least seven workingdays during which time they cancancel the order for any reason:they must give you notice bydurable means such as post, faxor email. For goods, the sevendays runs from the day afterthey or the information arereceived, whichever is later. Theposition is more complicated withservices. The cooling-off periodgenerally runs from the day afterthe contract date or after theinformation is received, whicheveris later, but there are exceptionsdepending on what has beenagreed with the customer.Businesses which provide aservice which lasts for more thanone year or has no specified enddate (providing cable television,for example) also have tosend details on when and howcustomers can end the contract.If your business uses coldcalltelephone selling, callersmust clearly state the business’sname and the call’s commercialpurpose at the beginning of theconversation.Additional rules apply if yousell electronically — via theinternet, email, mobile phones ordigital television, for example.Next steps● See Selling and marketingelectronically, opposite● Visit www.nibusinessinfo.co.uk/tradingstandards● More information is availablefrom Trading Standards.}Complying with onlineselling rules isn’t difficult,especially if you seekadvice, which needn’t evencost you anything. Theinformation is out there~Oscar WoolleySuki TeaThe No-Nonsense Guide

Trading regulationsand data protectionContact 028 9025 3900;www.detini.gov.uk/deti-consumer-indexSelling and marketingelectronicallyBusinesses that sell or marketonline must provide potentialcustomers with informationand protect their privacyIf you advertise or sell goods orservices to consumers online— over the internet, by email,on interactive digital televisionor using mobile phone textmessages — you must:● provide customers andpotential customers with thefull name and contact detailsof your business, including anemail address;● give your VAT number ifapplicable;● give a clear indication ofprices if you refer to them,together with details of anyassociated taxes anddelivery costs.If you use electroniccommunications to promotegoods and services — such asmarketing emails — you must:● make sure they are clearlyidentifiable as commercialcommunications;● clearly identify the person ororganisation on whose behalfthey have been sent;● for unsolicited emails toconsumers, sole traders orunincorporated partnerships,obtain the recipient’s priorconsent unless you collectedtheir email address during aprevious sale or negotiation,are marketing similarproducts and services and therecipients had the opportunityto opt out when their detailswere collected;● enable recipients to identifyunsolicited commercial emailsimmediately;● provide a valid email addressrecipients can use to opt outfrom your marketing mailings;● clearly identify any discountsor promotions and anyqualifying conditions thatapply;● include information aboutmembership of professionalbodies (such as the Gas SafeRegister) if applicable.Mobile phone text messagesare likely to be too short forall necessary details — in thiscase you can direct customersto information on your websiteinstead.If you allow customers toplace orders online, you must:● clarify what steps are involvedto conclude a contract;● give customers the chance tocheck their order and correctany errors before placing it;● acknowledge receipt of anyorders electronically andwithout undue delay;● make sure customers canstore and reproduce any termsand conditions you supply.You must also give users ofyour website the opportunity torefuse cookies — small files whichallow you to recognise and trackhow visitors use your website.Data-protection rules prohibityou from revealing recipients’email addresses in emails beingsent to a bulk mailing list. Puttingrecipients’ addresses in the ‘bcc’field of your email software canprevent this.Businesses selling over theinternet or on digital televisionmust also comply with rules ondistance selling.Next steps● See Distance selling, page 51● Visit www.nibusinessinfo.co.uk/ebusiness● For more information, read:A Guide For Business ToThe Electronic CommerceRegulations 2002 (URN02/1131). Contact0845 015 0010;www.bis.gov.uk/publicationsGuidance For Marketers OnThe Privacy And ElectronicCommunications Regulations.Contact 08453 091 091;www.ico.gov.ukAccepting credit anddebit cardsAccepting credit and debitcards will mean opening adifferent type of bank accountto receive paymentsYou must open a merchantaccount with an ‘acquiring bank’if you want to accept creditor debit card payments from53The No-Nonsense Guide

54customers — whether in person,over the internet, in writing or byphone or mail order. There areseveral acquiring banking groupsin the UK — mostly well-knownhigh-street names.You will need to establishsuitable procedures and takeadvice from your acquiring bankto minimise the risk of fraud. Youshould be on your guard againstaccepting stolen or counterfeitcards or fraudulent transactions,especially when the customer isnot present for the transaction.Next steps● More information on credit anddebit card security and on fraudprevention is available fromFinancial Fraud Action UK. Visitwww.financialfraudaction.org.ukGetting paid on timeThe law discourages peoplefrom paying late by allowingyou to charge late-payers moreif you wish. There are alsoother options you may considerif getting payment proves to bea problemIf another business pays youlater than agreed, you have theright to claim interest on theoverdue amount. Unless yourterms and conditions orinvoices state otherwise,payment will be due after 30days. Interest on overdue billsshould be calculated daily at theBank of England base rate pluseight per cent.You can also claimcompensation if you wish. Youcan claim £40 for debts of lessthan £1,000, £70 for debtsbetween £1,000 and £9,999 and£100 for debts of £10,000 ormore. The decision whether tocharge interest or compensationcosts is a matter for you.You can challenge customerswho attempt to impose termsand conditions that removeyour rights to claim interestor compensation. Businesseswith fewer than 250 employeescan ask a representative bodysuch as a trade association togo to court on their behalf tochallenge such terms.Other businesses may ofcourse choose to charge if youpay their bills after the due date.While the law tries to offer aremedy for late payment, goodcredit-management procedureswill be more effective in the longterm, significantly boosting yourcashflow and preventing latepayments in the first place.Next steps● Visit www.nibusinessinfo.co.uk/promptpayment● The Better Payment PracticeGroup offers an online interestcalculator, standard lettertemplates and guidance on thelaw. Visit www.payontime.co.uk● For more information, read:A User's Guide To LatePayment Legislation(URN02/883). Contact0845 015 0010;www.bis.gov.uk/publicationsCourt action for debtsCourt action may be a lastresort if another individual orbusiness fails to pay youBefore you start court action, youshould carefully weigh up howlikely you are to win your caseand how much money the personor business you take to court has.If they have no money or assets,there is nothing a court can do tomake them pay you. Even if yournon-paying customer is a limitedcompany, it may in itself have noassets.It is advisable to getprofessional help before youlaunch legal action.If you take someone to courtfor less than £2,000 you canuse the small claims court. Youcan start this process online orby obtaining Form 125 from yourlocal county court.For amounts between £2,000and £25,000 you need tocomplete a civil bill — the formrequired is CCR Appl Form 9.Amounts of more than£25,000 are dealt with in theHigh Court.When you make a claim, thecourt will contact the person youare taking action against and ahearing or trial will be organised.You will have to pay all yourlegal fees while you are makinga claim. But if you win, thecourt may order whoever youhave taken to court to repay aproportion of your costs as wellas what they owe you.But court action should alwaysThe No-Nonsense Guide

Trading regulationsand data protectionYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness planbe a last resort. Even if you win,there is no guarantee you willget your money and you willprobably have to pay at leastsome of your costs, whatever theoutcome.Next steps● Visit www.nibusinessinfo.co.uk/debt● The Court Service can tell youwhere your nearest countycourt is. Contact028 9032 8594;www.courtsni.gov.uk● For information about makinga small claim, read: SmallClaims Guide. Visitwww.courtsni.gov.uk/en-gb/publicationsPreventing moneylaunderingCertain businesses — includingthose which accept large cashpayments — must take steps toavoid money launderingBusinesses which must put antimoney-launderingprocedures inplace include:● money service businesses(MSBs) — bureaux de change,money transmitters and thirdpartycheque cashers;● high-value dealers (HVDs) —businesses that deal in goodsand accept (or are prepared toaccept) in cash the equivalentof 15,000 euros or more(£12,500 approximately) forany single transaction;}It’s not just about makingsure you don’t break thelaw, it’s also about givingyour customers completefaith in your business~Oscar WoolleySuki Tea● estate agents;● trust or company serviceproviders;● independent legalprofessionals;● accountants, tax advisers,auditors and insolvencypractitioners;● casinos.Businesses affected must:● register with HM Revenue& Customs unless alreadysupervised by a designatedbody such as the FinancialServices Authority or the LawSociety;● identify and manage themoney laundering risks intheir business;● pay an annual fee basedon the number of premisesthrough which they trade;● report changes during theregistration year;● train staff in preventingmoney laundering;● verify the identity of certaintypes of customers;● keep records of customers andtransactions for at least fiveyears;● set up procedures to report andidentify suspicious transactions.Next steps● Visit www.nibusinessinfo.co.uk/moneylaundering● You can get further guidancefrom HM Revenue & Customs.Contact 0845 010 9000;www.hmrc.gov.uk/mlr55The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication56Insuring againstliabilitiesSometimes things go wrongand it may be worth insuringyour business against anydamage caused to customersor the public, although this isnot compulsoryYou are not obliged to insureyour business against the effectsof any harm it may cause tocustomers or the public — but itis advisable.Public liability insurancecovers claims made following anincident related to your business’sproperty, premises or staff.Product liability insuranceprotects against claims followingincidents caused by productsyou sell.Professional indemnityinsurance covers businesses thatoffer professional services oradvice against any legal actionlaunched by a customer.Remember that if you haveemployees, you must haveemployers’ liability insurance.Next steps● If you have employees, youmust purchase employers’liability insurance. See Insuringyour employees, page 62● Visit www.nibusinessinfo.co.uk/businessinsurance● Talk to your insurance brokeror company, or your financialadviser, about the usefulnessof liability and indemnityinsurance}You must store informationsecurely and only use itonly for the purpose forwhich you gathered it~Oscar WoolleySuki TeaData protectionIf you hold information onpaper or in electronic formabout employees, customers,potential customers, suppliersor other business contacts,you must treat this informationwith care and what you do withit is covered by the lawThe data-protection laws coverthe ‘processing’ of any personalinformation — which meansobtaining, holding, retrieving,disclosing, erasing or destroyingit. The laws cover informationheld on computers and in certainmanual filing systems.Businesses which processinformation using computers —or which use CCTV equipment— generally have to notify theInformation Commissioner of theinformation they are collecting,and for what purpose. Notificationcosts £35 for businesses withup to 250 employees, and mustbe renewed annually. But manybusinesses will not need tonotify. You will be exempt if youonly process people’s personalinformation for a limited numberof core business activities. Theseare:● staff administration —processing information forpersonnel purposes such ashiring, paying, managing,disciplining and dismissingstaff;● advertising, marketing andpublic relations activitiesrelating to your business or itsgoods or services; you keepThe No-Nonsense Guide

Trading regulationsand data protectionthis exemption even if you buyin information for marketingpurposes;● accounts and records: thiscovers keeping information onpast, existing or prospectivecustomers and suppliersnecessary to help you keepyour accounts, make decisionsabout whether to do businesswith a particular customer orsupplier (except informationobtained from a creditreference agency) and makefinancial and managementforecasts.Even if you do not need to notify,you must still comply with dataprotectionlaws. These lawsare presented as a series of‘principles’. The principles saythat information must be:● fairly and lawfully processed;● processed for limited purposesand not in any way that isincompatible with thosepurposes;● adequate, relevant and notexcessive;● accurate;● not kept for longer thannecessary;● processed in line with therights of the person that theinformation is about;● secure;● not transferred to countriesthat do not have adequateprotection of information.To comply with the principles,you must only collect theinformation you need. Workout exactly what informationyou need, and about whom.Inform the individuals concerned— normally in writing — whoyou are, why you want theinformation and what you aregoing to do with it.Make it clear if you intend togive the information to anyoneelse — this can be a specificthird party or a more generaldescription such as ‘othercompanies’ or ‘suppliers’. Yourstandard documentation mustprovide this information and givepeople the chance to opt out.Make sure information isaccurate and up to date. Ifan individual tells you theinformation you hold on them isinaccurate, consider correcting itand advise the individual of yourintentions. Delete informationyou no longer need. Keep itsecurely — make sure any roomsand IT systems in which youkeep personal information aresecure — and train staff in goodinformation-handling practices.You may also have to provideindividuals with a copy ofinformation you hold about themif they make a written requestfor it (known as a ‘subject accessrequest’). You can charge a feeof up to £10 for providing thisinformation. It must be sentpromptly to the individual in aneasily understandable form —and in any event within 40 daysof receiving the request. Givedetails of why you are processingtheir information, anyone it maybe passed to and any informationyou have about the source of thedata.Do not use an individual’spersonal information for directmarketingpurposes if they askyou not to do so.Do not transfer information toa country outside the EuropeanEconomic Area (the EuropeanUnion countries plus Iceland,Liechtenstein and Norway) unlessyou are sure the country hasadequate data-protection laws oryou have the individual’s consent.You must take particularcare with sensitive informationcovering areas such as aperson’s racial or ethnic origin;political opinions; religiousbeliefs or beliefs of a similarnature; trade union membership;physical or mental health orcondition; sexual life; any actualor suspected criminal offenceand any proceedings beingbrought in connection with this.You can only process suchinformation if:● the person involved has freelygiven explicit written consentto its use for clearly statedpurposes;● it is required for legal reasons;● it is needed for ethnic or antidiscriminatorymonitoring.Next steps● Visit www.nibusinessinfo.co.uk/ebusiness● For more information, read:Getting It Right — A BriefGuide To Data Protection ForSmall Businesses. Contact08453 091 091;www.ico.gov.uk● Check whether you have tonotify with the InformationCommissioner’s office. Contact0303 123 1113 or the NorthernIreland office on 028 90269380; www.ico.gov.uk57The No-Nonsense Guide

Taking on your first employee is a big step. But the legal requirements, explained here, can help youthink about the recruitment and appointment process and focus on what is best for your businessRecruiting yourfirst employee58How to recruit andselect employeesYou have to make recruitmentdecisions in a fair and nondiscriminatorywayYou must not discriminateagainst a candidate on thegrounds of race; sex (whichincludes marital status, samesexcivil partnership andgender reassignment); sexualorientation; disability; age;religion or political opinion atany stage of the recruitmentprocess, from job advertisementsand application forms tointerview questions and thecontractual terms you offer.There are a few limitedexceptions to the antidiscriminationrules. For example,some restaurants that servefood in a particularly authenticsetting may be allowed to recruitfrom particular racial groups.With care work, it may benecessary to appoint someoneof a particular sex for reasons ofprivacy and decency.It is best to get advice if youthink you have a genuine reasonto apply an exception.Businesses with more thanten employees working over 16hours a week must register withthe Equality Commission andmonitor the religious profile oftheir workforce. This involvesasking employees and jobapplicants — in writing — whetherthey are Protestant, RomanCatholic or neither. You mustkeep records of this informationfor three years.While asking about candidates’experience outside the workplacecan be helpful if it relates directlyto the job, it can be unlawfulto stray into areas concerningpersonal circumstances, such asmarital status.Be careful what you write ininterview notes. Under dataprotectionlaws candidates mayhave the right to see any notesmade during the interview.When obtaining references, donot ask for information unrelatedto the person’s ability to do thejob or conjecture about theapplicant.If you recruit through anemployment business oremployment agency, you havesome protection, including theright not to be introduced to apotential worker until there isconfirmation:● of their identity;● that they have the relevantqualifications, skills andexperience;● that they are willing to acceptthe position.Next steps● See Workers with disabilities,page 71● Visit www.nibusinessinfo.co.uk/employingpeople● The Equality Commission canprovide further advice.Contact 028 90 890 890;www.equalityni.org● Read: Step By Step Guide ToMonitoring. Contact028 90 890 890;www.equalityni.org● The Labour Relations Agencycan provide information onemployment legislation andrights. Contact 028 90321442; www.lra.org.ukEligibility to work inthe United KingdomIt is a criminal offence toemploy someone who is notentitled to be in the UK andto do the work in question.There is a range of documentsyou can ask for as proof ofeligibility to workBefore taking on a new employee,you should ask them to provideoriginal documents showing thatthey have the right to work inthe United Kingdom. These caninclude:● a British passport;● a passport from another countrywith an endorsement certifyinga right of abode in the UK;● a passport or nationalidentity card of a EuropeanEconomic Area (EEA) countryor Switzerland. The EEAconsists of the European Union(EU) countries plus Iceland,Liechtenstein and Norway.Since April 2011, nationals ofthe following eight EU countriesno longer need to registerwith the Home Office’s workerregistration scheme before theycan work in the United Kingdom:the Czech Republic, Estonia,Hungary, Latvia, Lithuania,Poland, Slovenia and Slovakia.Unless exempt, nationals ofa further two EU countries –The No-Nonsense Guide

Recruiting yourfirst employeeCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationBulgaria and Romania – mustobtain authorisation beforestarting to work;● a UK residence permit issuedto an EEA or Swiss national;● a permanent residence cardissued by the Home Office orUK Border Agency to a familymember of an EEA or Swissnational who is resident in theUK;● a full UK birth certificate oradoption certificate, or a birthor adoption certificate issuedin the Channel Islands, Isle ofMan or Ireland, together withan official document issuedby a Government agency orformer employer showing theapplicant's name and NationalInsurance number.Other documents may also beacceptable, but only show that theapplicant has a limited right to bein the UK. If an applicant providesthese documents, you mustrecheck their eligibility to workat least every 12 months. Thesedocuments include:● a passport showing that theholder is allowed to stay in theUK and do the type of workyou are offering, together witha work permit if required;● a residence card issued to afamily member of an EEA orSwiss national;● a verified asylum applicationregistration card (ARC) statingthat the holder is allowed totake employment.You must take reasonable stepsto ensure documents are validand relate to the person inquestion. Keep copies for as long}Before taking on staffI took advice from myaccountant and HMRevenue & Customs. I alsowent on a few courses toensure I understood howto write an employmentcontract and what myemployees’ rights were~Kim McMullenLittle Stars Private Day Nurseryas the individual works for youplus a further two years.Next steps● Visit www.nibusinessinfo.co.uk/migrantworkers● More information is availablefrom the UK Border Agency.Contact the Employers'Helpline: 0300 123 4699;www.ukba.homeoffice.gov.ukDrawing upemployment contractsAn employment contractexists as soon as a job offeris accepted, even if it is notwritten. The terms of thecontract can be written,spoken or implied by the natureof the job being offered — or acombination of all three. Youmust give employees a writtenstatement setting out the mainterms and conditionsWhen a job candidate acceptsyour offer of employment— which can be made orallyor in writing — you have thenentered into an employmentcontract. The contract can beconditional — perhaps dependingon references or a medicalexamination.If you expect the person to beworking for you for one monthor more, you must draw up awritten statement which sets outsome of the main terms andconditions of the employmentcontract. Give it to the employee59The No-Nonsense Guide

60It worked for meHow Irecruitedmy firstemployeeKim McMullen founded LittleStars Private Day Nurseryin August 2001. The CountyDown-based company took onsix employees before it evenopened its doorsMarie Therese Hurson/Harrison Photography} I found the first round of jobFirstinterviews quite difficult justbecause I had never done onebefore. Now I trust my instinctsmore but always make surethere is another interviewerpresent. This gives me a secondopinion and a witness if anyonetries to make a claim against uslater, although luckily this hasnever happened.When we are interviewingwe grade applicants from oneto five. We also take things likeconfidence, appearance andpersonality into considerationand look through theirreferences, employment historyand how long they have stayedwith past employers.When I have decided to offersomeone a job I call them firstand then send a letter out witha contract. The letter states theoffer is subject to references.When recruiting we need tocheck we don’t discriminateagainst any particular group.For example, you have tobe particularly careful notto discriminate on religiousgrounds. Obviously when weadvertise we’re looking for bothmale and female applicants butIt’s very rare for a man to apply.All our employees haveto be over 18, qualified andhave a minimum of two years’experience but these arerequirements stipulated by SocialServices rather than by me.As soon as I realised Iwould be taking employeeson I contacted HM Revenue& Customs. It sent me allthe information I needed forworking out National Insurancecontributions and PAYE, includingthe tax codes so I could work itall out myself. I found it relativelystraightforward.My accountant set up ourpayroll system using accountingsoftware. I would definitelyrecommend this as it significantlycuts down the time doing thepayroll takes.I started looking for staffsteps: a planned approachto recruitment paid off for Kimabout three months beforeopening. I wanted time to findsuitable people and to carryout reference checks. Wealso have to do police checksbecause of the nature of thework.We need a certain ratio ofcarers to children, so to makesure I had enough employeesI took on six employeesimmediately. We advertisedin a local paper and in the jobcentre.~Little Stars Private Day Nursery74 Gransha Road, Bangor,Co Down, BT19 7PUTel 028 9124 4498Email littlestarsnursery@btconnect.comThe No-Nonsense Guide

Recruiting yourfirst employeeYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness planwithin two months of theirstarting to work for you. Keep acopy for your own records — whileit is not a contract in itself, it canprovide evidence of the terms ofthe contract if a dispute arises.The written statement mustinclude:● your business’s name and thename of the employee;● the date their employmentwith you began;● the date the employee’speriod of continuousemployment began. This isusually the date they startedwith you. But if, for example,you bought your businessfrom their previous employer,continuous employment runsfrom when they started withthat employer;● how much the employee is paid,and at what intervals (weekly ormonthly, for example);● the employee’s working hoursand holiday entitlement;● the job title or a brief jobdescription;● the place of work. If theemployee is required orallowed to work in more thanone place, the statementshould indicate this and givethe employer’s address;● the length of notice you andthe employee must give toend the employment;● how long the job is expectedto last if it is not permanent;the date it will end if it is for afixed term;● details of any collectiveagreements made betweenyou and the employee’srepresentatives, such as a tradeunion, which directly affecttheir terms and conditions.Some details can be set outeither in the written statementor in separate documents(such as a job-offer letter or acompany handbook) which thestatement refers to and whichthe employee can get hold ofeasily. These include:● details of sick leave and sickpay entitlements;● any pension entitlement;● disciplinary and grievancerules and procedures — allemployers are required tohave minimum three-stepprocedures in place (see Nextsteps below).Some other terms of thecontract are implied and donot need to be written intothe contract. For example, youmust provide a secure, safe andhealthy working environment,while your employee must serveyou honestly and faithfully.Your business’s custom andpractice — the way staff arenormally treated — may formpart of the contract. For example,if your redundancy paymentsare usually above those set bylaw, all employees may come toexpect the same treatment.Some terms — such as the rightto receive a minimum wage — areautomatically imposed by law.Next steps● See Length of the workingweek, page 65● See Paid annual leave, page 67● See Discipline and grievanceissues, page 80● Visit www.nibusinessinfo.co.uk/writtenstatement● The Labour Relations Agencycan provide information onemployment legislation andrights. Contact 028 90321442; www.lra.org.uk● Read: Written Statement OfEmployment Particulars (ER2).Contact 028 9025 7580;www.delni.gov.uk/er2Changes toemployment contractsYou must get the employee’sconsent if you want to changetheir employment contractIf you want to make changes toan existing employment contract,you must discuss and agreethem with the employee or theirrepresentative.You must inform the employeein writing within a month of anyresulting change made to thedetails of the written statement.Next steps● Read: Contracts OfEmployment: Changes, BreachOf Contract And DeductionsFrom Wages (ER21). Contact028 9025 7580;www.delni.gov.uk/er21Advice On Agreeing AndChanging Contracts OfEmployment.Contact 028 9032 1442;www.lra.org.uk61The No-Nonsense Guide

You may be worried about your additional responsibilities when you employ people. But ourstep-by-step guide provides an organised and low-stress approach to building a strong relationshipwith your employees and increasing your business’s chance of successUnderstandingemployees’ rights62Insuring youremployeesWorkers andemployeesthe minimum wage — butnot overtime or shift-workpremiumsYou must insure against anyclaims arising from illnesses,diseases or injuries your staffmay pick up as a result ofworking for youEmployers’ liability insurance,which protects your businessagainst claims from employeesfor accidents or sickness theymay suffer as a result of workingfor you, is a legal requirement.The statutory minimum cover is£5 million and you should displaythe certificate in any place ofwork. You should keep yourcertificates even after they haveexpired — employees could makea claim many years after theyhave worked for you.Next steps● Visit www.nibusinessinfo.co.uk/insurance● Contact the Health and SafetyExecutive for Northern Ireland:0800 0320 121;www.hseni.gov.ukThe national minimumwageNearly everyone who worksfor you is entitled by law toreceive a minimum level ofpay — the national minimumwage. Bonuses and incentivepayments count towardsAll employees are workers, butnot all workers are employees.Many rules, regulations andrights apply only to employees,but some apply to all workers.An ‘employee’ is someonewho works for you underthe terms of a contract ofemployment, whether it iswritten down, agreed orally orimplied by the nature of therelationship.A ‘worker’ is any individualperson who works for you,whether under a contractof employment with you ornot, who provides a personalservice — e.g. a short-termcasual worker, agency workeror some freelance workers.In terms of the rules andregulations in this section,genuinely self-employedpeople or businesses to whomyou subcontract are notusually defined as ‘workers’.Where ‘workers’ are referredto in this guide, everyoneworking for you who is notself-employed or employed bysomeone else is entitled to theemployment rights in question.Next steps● Check whether freelances,agency workers or any otherindividuals are classified asworkers or notYou must pay anyone who worksfor you at least the nationalminimum wage. This typicallyincludes freelance and casualworkers as well as employeeswho have a contract ofemployment.The rates current fromOctober 1, 2011, are:● £6.08 an hour for thoseaged 21 or over;● £4.98 an hour for peopleaged 18 to 20;● £3.68 an hour for workers aged16 and 17, who are above theage of compulsory schooling;● £2.60 an hour for apprenticesunder the age of 19 or in theirfirst year of apprenticeship.Minimum wages for agriculturalworkers are set separately bythe Agricultural Wages Board(AWB) under a grading system(see Next steps below). Thehourly rates are at least equal tothe national minimum wage, buthigher rates apply for workerswith more experience andqualifications.When calculating whetheryou are paying the minimumwage, you can take into accountany bonuses and incentive orperformance-related payments.Tips do not count towards theminimum wage.Extra money above basic pay— such as overtime or shift-workpremiums — does not count.No benefits other thanmoney can be included, apartfrom a small amount for freeThe No-Nonsense Guide

Understandingemployees’ rightsCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationaccommodation.Workers’ average pay must beat or above the minimum wagefor the period for which they arebeing paid.For workers on a wage orsalary, the number of hoursworked will generally be clear.Output workers — includinghomeworkers — paid to do settasks must either be paid at least120 per cent of the minimumwage for the average hoursneeded to complete a block ofwork, or paid the minimum wagefor every hour they work.You must keep recordsto prove you are complying.Workers can ask to see themif they think they are beingunderpaid.If your staff have earningswell above the minimum wage,you probably will not need tokeep any specific records beyondthose you already keep for PAYE.Next steps● Visit www.nibusinessinfo.co.uk/minimumwage● The Pay and Work RightsHelpline can provide furtherinformation:contact 0800 917 2368● For more information aboutthe AWB grading system foragricultural minimum wagecontact 028 9052 4999;www.dardni.gov.ukStaff who areoff sick}Our values demand thatwe remain customerfocused,innovative andhave integrity, but they’realso about ensuring all ofus are motivated and enjoyour work~John CowleyKofax Northern Ireland ltdStaff who cannot work for fourdays or more because of illnessare entitled to a minimumlevel of sick pay. You can claimsome of the money back fromHM Revenue & Customs if yourbusiness’s sick pay exceeds aset levelYou must pay statutory sick pay(SSP) to employees who cannotwork for four or more calendardays in a row because of physicalor mental illness or disablement.The rate in the tax year 2012-13is £85.85 a week.All full- and part-timeemployees and agency workerswho are employees for NationalInsurance purposes qualify forstatutory sick pay provided theyearn more than the NationalInsurance lower-earnings limit,which is £107 a week (2012-13 taxyear).You can withhold statutorysick pay if the employee hasrecently received employmentand support allowance orincapacity benefit or is incustody.If your own arrangementsare more generous than thestatutory sick pay scheme youcan opt out. But you must keepdetailed records.Statutory sick pay is subjectto income tax and employees’National Insurance contributions.It is payable for up to 28 weeksfor any one period of sicknessor series of linked periods ofsickness.You may be able to recoversome SSP by deducting thismoney from the NationalInsurance contributions you pay63The No-Nonsense Guide

You also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan64to HM Revenue & Customs (andfrom income tax if necessary).You can find details of whatyou can claim back on the HMRevenue & Customs website (seeNext Steps below). Any sick payyou recover has to be recordedon your P14 and P35 forms atthe end of the tax year.You must keep full recordsof sick pay for three years. Aform for this purpose (SSP2) canbe obtained from HM Revenue &Customs.You should also recordsick pay paid to an employeein the relevant column onyour employee’s P11 form orequivalent payroll record.Next steps● See Working out tax and NI foremployees, page 17● See Employees’ pay records atend of tax year, page 20● Visit www.nibusinessinfo.co.uk/employingpeople● For more information contactHM Revenue & Customs:0845 60 70 143;www.hmrc.gov.uk/paye● Read: Employer Helpbook ForStatutory Sick Pay (E14).Contact 0845 60 70 143;www.hmrc.gov.uk/payeArranging employees’pensionsIf you have five employeesor more, you may need tooffer employees access to astakeholder pension scheme.Your business is not requiredto make contributions to anemployee’s scheme — but youmust deduct an employee’scontributions from their pay ifthey ask you toYou are exempt from havingto offer a stakeholder pensionscheme, even if you employ fiveor more people, if:● they all earn less than theNational Insurance lowerearnings limit, which is £107 aweek (2012-13 tax year);● you offer access to anoccupational pension schemewhich all employees can joinwithin a year of starting work;● you offer to pay a contributionof at least three per cent ofemployees’ basic pay to apersonal pension scheme andto deduct their contributions ifrequested. The scheme shouldnot penalise members whostop contributing.Unless exempt, you must choosea stakeholder scheme registeredwith the Pensions Regulator.You should consult employeesabout your choice and then writeto the scheme provider to sayyou have formally chosen theirscheme. Keep a copy of the letter.Give employees details of yourchosen provider and a contactname. You can give informationabout the scheme to employees,but you must not advise themabout its financial benefits.Employees are not obliged tosign up to the scheme. Tell staffyou can take their contributionsfrom pay through PAYE but thatthey can pay directly into the}Although our businesshas grown massively, itremains a personableorganisation that dislikeshierarchy and values itspeople~John CowleyKofax Northern Ireland ltdThe No-Nonsense Guide

Understandingemployees’ rightsscheme if they prefer.You must deduct employees'contributions from pay if askedto do so and forward them to thescheme provider. Keep records ofthe payments.Employers do not have tocontribute. If you do, tell staffhow much you intend to give.Next steps● Visit www.nibusinessinfo.co.uk/employingpeople● The Pensions Regulator offersa decision tree for employersand a register of stakeholderpension providers. Contact0870 606 3636;www.thepensionsregulator.gov.ukLength of theworking weekRules on working time fix themaximum average workingweek for most workers at48 hours. Workers can agreevoluntarily to forgo this limit— but you must not putpressure on them to do soFor calculation purposes, hoursare averaged over a 17-weekperiod, though this can beextended by agreement. Thisreference period must notinclude time spent on holiday orsick leave. For instance, if twodays are lost due to sickness theminimum reference period is 17weeks and two working days.Workers can voluntarilyagree to waive the 48-hour limit— but you must not force or putpressure on them. You must askthose who do opt out to sign awritten agreement.Drivers and employeestravelling with them are alsorestricted to an average of 48hours a week. They cannot optout of this.Work-related training countsas part of the working week, asdoes travel as part of a worker’sduties and working lunches. Butlunch breaks and journeys to andfrom work do not.The limits do not apply tothose with the freedom tochoose their own hours of work— typically senior managers —nor to self-employed contractors.But freelance or agency staffpaid a regular wage or salary doqualify. For young workers — overthe minimum school-leaving agebut under 18 — the maximum is40 hours.You need to keep records toshow you are complying with the48-hour limit — but you can dothis using records you alreadykeep for pay (a payslip quotinghours worked, for example).You have to keep an up-todaterecord of workers who havewaived the 48-hour limit.Next steps● Visit www.nibusinessinfo.co.uk/employingpeopleGiving staff restbreaksWorkers have a right tominimum rest breaks duringand between shifts, and aset number of days off eachweek. There are special rulesprotecting young workersMost people who work for you— employees, freelances, casualor agency workers — are entitledto minimum rest breaks. Workersmust have a minimum 20-minuterest break in each shift lastingmore than six hours. Youngmembers of staff (under 18) areentitled to at least 30 minutes’break for every four and a halfhours they work.Staff have a right to 11 hours’rest between each working day;young workers get 12 hours.You must not force staff towork more than six days in everyseven, or 12 days in every 14.Young workers should get twodays off a week.In certain specifiedcircumstances, rest breaks, restsbetween shifts and days off canbe accumulated and used later.For example, this may happenduring busy peak periods,when an emergency cropsup or where someone works along way from home and wantsto work longer hours over fewerdays to complete a task morequickly.A young worker’s entitlementto breaks can only be changedor removed in exceptionalcircumstances. They must notwork more than eight hours aday and 40 hours a week.If you have a worker coveredby the Equality Act who requiresextra breaks, for example to take65The No-Nonsense Guide

It worked for meHow ourcorporatevalues keepour staffmotivatedAaron McCracken/Harrison Photography66Kofax Northern Ireland ltd,formerly Singularity, developsand markets software solutionsthat make business processesmore agile and its customersmore competitive. As financedirector John Cowley andHR manager Sharon O'Neillexplain, the company’s successis built upon its corporatevalues, which enable them toattract and retain staff}The company is now part of awider global business groupwhich employs around 1,200people across 70 countries.Crucially, we believe thatour corporate values helpto unify everyone within thebusiness. Our values demandthat we remain customerfocused,innovative and haveintegrity, but they’re alsoabout ensuring all of us aremotivated and enjoy our work.In 2008, when the companywas still known as Singularity,we decided to refresh ourcorporate values, to alignthem with our guiding strategyof agility. The softwarewe produce enables ourcustomers to become moreagile, but agility is at the heartof our own business, too. Toengage everyone we organisedtwo events for all staff: one inHyderabad, India, the othernear Derry. The aim was tolisten and work together todevise values and behavioursto help us to achieve our goals.Both events were hugelyproductive. After some furtherrefinement by teams acrossall sites, we agreed upon fourkey values: Customer Focus,Innovation, Integrity and HappyStaff. It shows how muchimportance we place on ourpeople.Singularity began as asole trader business in 1994and was acquired by KofaxPlc in December 2011. Thecompany however, remains apersonable organisation thatdislikes hierarchy and valuesits people. Despite being partof an international softwarecompany, we believe that Kofaxin Derry can still offer flexibleand innovative products toour customers and excitingemployment opportunities toour staff. This helps us to attractand retain talented and wellmotivatedpeople.Many people have been withus for more than five years —some for more than a decade.Salary, benefits and interestingShared values keep our staffunited, say Sharon and Johnwork aside, we believe that ifyou engage people and createexcitement around whatthey’re doing, they’ll enjoytheir work and want to stay.Effective ongoingcommunication is vital. Wealso recognise the need toinvest in our people. We’vebeen accredited to Investorsin People since 1998 andwe’ve just been reaccredited.Since the acquisition Kofaxhave started a new process ofTRANSFORM that should befully deployed within 12 to 18months.~Kofax Northern Ireland ltdDerry, Co LondonderryTel: 02871 267 767www.kofax.com,The No-Nonsense Guide

Understandingemployees’ rightsCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationmedication privately, you may bediscriminating by refusing.Next steps● See Workers with disabilities,page 71● Visit www.nibusinessinfo.co.uk/employingpeoplePeople working atnightThere are special regulationsgoverning night workers’hours and they must alsobe offered a free healthassessment to check they arefit to work at nightUnless you agree otherwise withyour staff, night time is definedas the period from 11pm to 6am.Nearly everyone who worksfor you, including employees,freelances and agency workers,is covered by these rules.Night workers — people whoregularly work at least threehours during night time — shouldnot average more than eighthours of night work in each 24-hour period. This is normallycalculated over 17 weeks, thoughit can be extended by agreementwith staff.If a night worker’s job involvesspecial hazards or physicalor mental strain, there is noaveraging — they must not workmore than eight hours in any one24-hour period.In general, young workers(under 18) are not permitted towork at night — though thereare exceptions for a number ofbusiness sectors.You must offer workers a freehealth assessment before theystart working at night and repeatit regularly (typically once a year)after that. This will generally bein the form of a questionnaire,with a medical examinationfollowing if you have any doubtsabout the employee’s fitnessfor night work. You must keeprecords of these assessments fortwo years.Next steps● Visit www.nibusinessinfo.co.uk/employingpeoplePaid annual leavePeople who work for you mustget a minimum of 5.6 weeks’paid annual leave a year —equivalent to 28 days' leavefor a full-time worker. Thisentitlement can include bankholidaysMost people who work for you,including your employees,freelances and agency workers,are entitled to a minimum of 5.6weeks’ paid annual leave, withpart-time workers enjoying leaveproportionate to the number ofdays they work each week.This means that a full-timeworker who works five daysa week is entitled to 28 days’annual leave, while a part-timerwho works two days a week isentitled to 11.2 days.You are of course free tospecify a longer period inyour employees’ contracts ofemployment if you wish.The minimum leave period caninclude bank holidays. There isno automatic right to take bankholidays off.The leave entitlement startsbuilding up from a worker’sfirst day at work. During theirfirst year of work you can usea system in which they get onetwelfth of their annual leaveentitlement for each month theywork, rounded to the nearesthalf-day.Holiday pay must be basedon the worker’s average pay. If,for example, their normal payincludes additional money forworking unsocial hours, so mustthe holiday pay.You should agree with staffhow much notice of leave theyshould give. If you do not havean agreement, the notice periodshould be twice the length of theleave requested.If someone stops working foryou they are entitled to be paidfor any leave they haven't taken.Next steps● Visit www.nibusinessinfo.co.uk/annualleaveTime off work otherthan annual leaveThere is a range of other67The No-Nonsense Guide

You also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan68circumstances in whichemployees will be eligiblefor paid or unpaid time off —including acting as a safetyrepresentative, going toantenatal appointments anddealing with an emergencyinvolving a dependantYou must allow staff time off in anumber of circumstances.Pregnant employees areentitled to paid time off to attendantenatal-care appointmentsmade on the advice of aregistered midwife, health visitoror medical practitioner.You must give ‘reasonable’paid time off to employeeswho are:● carrying out duties orreceiving training as a safetyrepresentative;● carrying out industrialrelationsduties or beingtrained as an official of arecognised trade union;● carrying out duties as apension scheme trustee;● looking for another job orarranging training for futureemployment when being maderedundant;● carrying out duties orreceiving training as anemployee representative forconsultation over collectiveredundancies or businesstransfers;● young people studying or intraining leading to a relevantqualification.In the following cases you mustgive employees ‘reasonable’ timeoff but it can be unpaid:● Taking action to deal withan emergency involving adependant — a child, husbandor wife, civil partner, parentor someone living with theemployee (other than atenant, boarder or employeeof the household) or someonewho reasonably relies onthe employee to arrangecare. Valid reasons for takingtime off include helping adependant who falls ill, isinjured or assaulted, arranginga dependant’s funeral, adependant giving birth, dealingwith an unexpected breakdownin care arrangements for adependant or dealing with anincident at a school attendedby a child of the employee.● Taking part in certain tradeunion activities.● A range of public duties,including membership ofa district council, districtpolicing partnership, healthboard, school governing body,statutory tribunal or prisonvisiting authority. If you do notrelease an employee for juryservice, you can be prosecutedfor contempt of court.If you have a worker whorequires time off for reasonsrelated to a disability, it maybe discriminatory to refuse therequest unreasonably.Next steps● See Workers with disabilities,page 71● Visit www.nibusinessinfo.co.uk/employingpeople● Read: Time Off For PublicDuties (ER7); RedundancyEntitlement — StatutoryRights (ER3); Time Off ForDependants (ER24). Visitwww.delni.gov.uk/erbookletsRace, sex and agediscriminationPeople have the right not tobe discriminated against ongrounds of race, sex (includingbeing married, civil partnershipand gender reassignment),sexual orientation and ageYou must not discriminateagainst anyone who works foryou (including self-employedcontractors) or treat them lessfavourably because of their:● colour;● race (including membership ofthe Irish Traveller community);● nationality;● ethnic or national origin;● age;● sex (including being married,civil partnership and genderreassignment);● sexual orientation.Apart from yourself, you alsohave to ensure that othermanagers or members of staffdo not discriminate against theircolleagues.In addition, the way yourecruit staff must not bediscriminatory.You must not offer lessfavourable contractual terms— including those covering payand benefits — to any employeeThe No-Nonsense Guide

Understandingemployees’ rightsor group of employees on thesegrounds. Nor must you denythem access to promotion,transfers, training or any otherschemes, facilities or services.You must not dismiss anemployee on these grounds.Under equal-pay laws, youmust offer the same level ofpay to men and women doingthe same or similar work, workrated as equivalent, or work ofequal value, as someone of theopposite sex.Any attempt at separatingpeople of a particular racefrom other staff counts asdiscrimination.You must also avoid indirectdiscrimination, where youapply a seemingly unbiasedrequirement or practicewith which any of the abovecategories of employee is muchless likely to be able to comply.Examples of indirectdiscrimination might be creatingnew shift patterns which makethings hard for working mothersor introducing a uniformbanning headgear when somepeople wear headwear forreasons relating to their ethnicbackground.Remember that you maybe held responsible for anydiscrimination or harassmentpractised by your employees,so you must deal with anyproblems. You might also beliable if you don't take steps toprotect your employees fromrepeated harassment by otherpeople.Discriminatory harassmentmight include demeaningremarks, graffiti, jokes, verbal}Many people have beenwith us for more than fiveyears — some formore than a decade~John CowleyKofax Northern Ireland ltdabuse or physical assault.You must not treat anyoneless favourably for making acomplaint of discriminationagainst you — known asvictimisation.There are a few limitedexceptions to the discriminationrules — for example, somerestaurants where food is servedin a particularly authentic settingmay be allowed to recruit fromparticular racial groups. In areassuch as care work, it may benecessary to appoint someoneof a particular sex for reasons ofprivacy and decency.It is best to take advice ifyou intend to apply one of theexceptions.You may also take positiveaction to help men or women ormembers of a particular racialgroup or sexual orientationcompete on equal terms whenlooking for work — perhaps byrunning a training course oroffering work experience. Youcan encourage people to applyfor work — but you must alwaysselect the best person for the jobwhen recruiting.Any benefits you offer marriedemployees and their spouses— such as health insurance orflexible working — must alsobe offered to employees whoare civil partners, and to theirpartners.It is unlawful to discriminateagainst someone on groundsof age in any area of theemployment relationship,including recruitment, pay,working conditions, training andpromotion.There is no longer any69The No-Nonsense Guide

70default retirement age. Thismeans that you can only set acompulsory retirement age foryour employees if it is objectivelyjustified.Next steps● See How to recruit and selectemployees, page 58● Visit www.nibusinessinfo.co.uk/discrimination● The Equality Commissionadvises on anti-discriminationlegislation and best practice.Contact 028 90 890 890;www.equalityni.org● Read: Harassment & BullyingIn The Workplace. Visitwww.lra.org.ukReligious and politicaldiscriminationPeople working for you areentitled not to be discriminatedagainst on grounds of religiousbelief or political opinionYou must not discriminateagainst anyone who worksfor you — or who applies toyou for work — on the basis oftheir religious belief or politicalopinions.You must not recruit in adiscriminatory way. You must notoffer less favourable contractualterms or reduced access topromotion, transfers, trainingand any other schemes, facilitiesor services on these grounds.You must not treat lessfavourably anyone who makes a}If you engage people andcreate excitement aroundwhat they’re doing,they’ll enjoy their work andwant to stay with you~John CowleyKofax Northern Ireland ltddiscrimination complaint againstyou — known as victimisation.You also have to avoid indirectdiscrimination — where youapply a seemingly unbiasedrequirement or condition withwhich persons of one religionor political group are much lesslikely to be able to comply.You may take affirmativeaction — such as providinga training course — to helpmembers of one religious orpolitical group compete onequal terms when looking forwork.Businesses with more thanten employees must also take anumber of steps to monitor thecomposition of their workforce.They must:● register with the EqualityCommission;● ask employees and applicantswhether they are Protestant,Roman Catholic or neither;● submit this information to theEquality Commission annually;● conduct every three years aformal review of employmentpractices — known as anArticle 55 review;● take steps to remedy underrepresentationidentified inthe formal review.Next steps● See How to recruit and selectemployees, page 58● Visit www.nibusinessinfo.co.uk/discrimination● For more information, contactthe Equality Commission:028 90 890 890;www.equalityni.org● Read: A Step By Step Guide ToThe No-Nonsense Guide

Understandingemployees’ rightsCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationMonitoring. Contact028 90 890 890;www.equalityni.orgWorkers withdisabilitiesYou must not treat staff lessfavourably for reasons relatingto a disability. This applies tobusinesses of all sizesDisability is defined as a physicalor mental impairment whichhas a substantial and long-termadverse effect on a person’sability to carry out normal dayto-dayactivities. This can includeconditions such as diabetes,epilepsy and asthma.You must be prepared to make‘reasonable adjustments’ fordisabled people — changes thatwould assist them to work orcontinue to work for you.Examples might include:● making alterations to yourpremises;● giving some of the disabledperson’s duties to anothermember of staff;● buying special equipment;● changing the person’sworking hours.The level of adjustment deemednecessary will depend oncircumstances including theresources available. Changemight not be necessary if theadjustment would:● make no significant differenceto the disabled person’s abilityto do the job;● not be practical;● cost more than you couldafford, particularly when thereis no financial help available toyou;● contravene other legislation,such as health and safetyrules.The way you recruit staff(including self-employedcontractors) should notdiscriminate against people withdisabilities.You may need to makereasonable adjustments to yourrecruitment process to makesure people with disabilitiesare not disadvantaged in theirapplication. For example, thismay mean holding an interviewin a room that is accessible toa wheelchair user, removing arequirement that people phonein to discuss a vacancy orproviding special equipment or asign-language interpreter for aninterview.You must not offer lessfavourable contractual terms— including those covering payand benefits — to staff becausethey are disabled. Nor can youdeny them access to promotion,transfers, training or any otherschemes, facilities or services.You must not dismiss staffon the grounds of disabilityor victimise anyone whomakes a complaint of disabilitydiscrimination against you.Next steps● See How to recruit and selectemployees, page 58● Visit www.nibusinessinfo.co.uk/disabilities● The Equality Commission canprovide more help and advice.Contact 028 90 890 890;www.equalityni.org● Read: Disability Code ofPractice — Employment andOccupation.Contact 028 90 890 890;www.equalityni.orgRights of part-timeworkersPart-time workers aregenerally entitled to the sametreatment as comparablefull-timers — from the samehourly rates of pay to accessto promotion opportunities,pension schemes and trainingYou must not treat part-timeworkers less favourably thancomparable full-timers — anyoneworking for the same employerdoing the same or broadlysimilar work. The rules coveremployees, freelances or casualworkers, but not the genuinelyself-employed. However, youmay be able to treat a part-timerdifferently from a full-timer ifyou can show that it is necessaryand appropriate to achieve a realbusiness aim.Part-time workers should getthe same hourly rates of pay ascomparable full-timers. Overtimerates must be the same, too —but legally you do not need topay overtime rates until theyhave exceeded normal full-timehours.71The No-Nonsense Guide

It worked for meHow flexibleworkingbenefits mybusiness72Paul Creighton is managingdirector of AES DistributionLimited, which manufacturesand distributes securitysystems such as CCTV,intercoms and gateautomation equipment. Hisbrother Mark runs a sistercompany — AES InstallationServices Limited — whichinstalls and services securitysystems. Both businesses —which were previously onecompany — make the most offlexible working practices} Before setting up on my own I Flexible:worked for various companies,large and small. I was alwayshappiest working for thosethat gave me flexible working— and when I enjoyed my work,I didn't need the same amountof money as reward. This maysound very shrewd now I'man employer, but that's anobvious benefit of flexibility.You also have a duty ofcare as an employer. Yourresponsibility goes deeperthan just paying people'swages.I’m lucky as the natureof my business lends itselfvery well to flexible working.Much of our trade is sales torepeat customers, many ofwhom place bulk orders oncea month. We also sell onlineso we’ll often get orders inovernight.Paul's approach to timeoff is based on mutual trustBut what that means isthat it’s not essential for us tohave strict working hours — it’scustomer-driven. We knowroughly when we can expectthe bulk orders to come in andworking hours can be plannedaround that. As long as the orderbook is fulfilled I don't mindwhen the work is done.We try to keep the phonesmanned 8.30am to 5pm Mondayto Friday but I always answer itmyself if necessary. There’s noneed for us to be working thestrict 9 to 5 when things arequieter. So long as the hours aremade up I’m happy — and 100 percent of the time I do see thosehours coming back, plus some.The installation business,which Mark runs, sometimes hasto install covert CCTV systemsand people might have to workthrough the night. They're happyto do that so we feel we have togive something back. Generally,if he needs to people to workunsociable hours, he’ll give themsome hours back or they’ll worksix unsociable hours for thesame amount of pay as an eighthournormal day, whichever suitsthem best.We both believe that happystaff are more productive. Mark’sjust changed some of the workinghours on his side of the business,as one of the team’s girlfriendcomes back from college for theweekend on a Friday afternoon.So instead of working standardhours, the team member startsat 8am each day and finishes at2.30pm on Fridays.And if anyone needs a bit oftime to go to the doctor or theThe No-Nonsense Guide

Understandingemployees’ rightsAaron McCracken/Harrison PhotographyCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publicationdentist, we’ll always allow thetime. Sometimes it’s straighttime off, or other times Markmay be able to find work forsomeone close to where theirappointment will be to makeit easier for them to get there.It’s not a problem because ofthe levels of appreciation andcommitment the businessesget in return.Flexibility for both ourbusinesses is about us beingteams. It comes under theumbrella of having a happy,motivated workforce – and I'dhighly recommend it.~Advanced Electronic SolutionsCookstown, Co. TyroneTel 028 8676 7878www.aes-ni.co.ukIn addition, part-timeemployees enjoy leaveproportionate to the number ofdays they work each week. So ifa full-time employee who worksfive days a week receives 30days’ annual leave, a part-timerwho works two days a week isentitled to 12 days.You must also treat parttimersthe same as full-timerswhen calculating entitlement tomaternity and parental leave andcalculating levels of sick pay andmaternity pay.You must give them the sameaccess as full-time workers topromotion opportunities andpension schemes.Part-timers must not be treatedunfavourably if you are selectingpositions for redundancy.You should not exclude peoplefrom training because theywork part-time. Where possible,training should be organisedwhen all staff can attend.You must not victimisepart-timers who have made acomplaint of unfair treatmentagainst you.Next steps● Visit www.nibusinessinfo.co.uk/part-time● The Labour Relations Agencycan provide further help andadvice. Contact028 9032 1442; www.lra.org.uk● Read: Part-Time Work: TheLaw And Best Practice.Visit www.delni.gov.uk/erpublicationsRight to belong toa trade unionYou must not penalise workersfor joining — or refusing to join— a trade unionYou must not base recruitmentdecisions on whether or nota worker belongs to a tradeunion. Staff do not need yourpermission to belong to a union.You cannot take any otheraction to prevent, penalise ordeter a worker from belongingto a union, such as refusing topromote them. Nor can youmake a worker join or stay in aunion. In addition, you cannotdismiss or threaten to dismiss anemployee for being a member ofa union.If you employ 21 or morepeople and refuse to recognisea union for collective bargainingpurposes, you may be requiredto do so after a ballot or ifthe majority of the relevantworkforce are union members.Next steps● Visit www.nibusinessinfo.co.uk/tradeunion● The Labour Relations Agencycan provide further help andadvice. Contact028 9032 1442; www.lra.org.uk● The Industrial Court adjudicateson applications relating tostatutory recognition of tradeunions. Contact 028 9025 7599;73The No-Nonsense Guide

74www.industrialcourt.gov.ukWhen an employeeis pregnantA pregnant employee qualifiesautomatically for 52 weeksof maternity leave. Many willalso be entitled to receivestatutory maternity pay fora period of 39 weeks. Youmust not discriminate againstan employee for reasonsconnected with her pregnancyYou must not dismiss a pregnantemployee — or single her outfor redundancy — for reasonsconnected with her pregnancy,childbirth or maternity leave. Normust you treat her unfairly.Regardless of the size of yourbusiness or the hours she works,a pregnant employee is entitledto a minimum standard oftreatment. Of course you can bemore generous if you wish.You must give pregnantwomen paid time off to attendantenatal care appointments,which may include relaxationand parentcraft classes, attendedon the advice of a registeredmedical practitioner, midwife orhealth visitor.All pregnant employees areentitled to 26 weeks’ ordinarymaternity leave and a further26 weeks' additional maternityleave immediately after that,regardless of how long they havebeen working for you.Many women will be entitledto receive 39 weeks’ statutory}We like to think we'reapproachable. Peopleneed to feel they can tellyou that they're having arough time and need totake some time off~Paul CreightonAdvanced Electronic Solutionsmaternity pay (see Pay onmaternity leave, right).Ordinary maternity leave canstart any time from the 11th weekbefore the baby is due.A woman expecting a babymust notify you by the endof the 15th week before theexpected week of childbirth:● that she is pregnant;● when the expected week ofchildbirth is, confirmed witha medical certificate if yourequest one;● when she intends hermaternity leave to start.You must write to her within 28days, stating when you expecther to return to work if shetakes her full maternity leaveentitlement.A pregnant woman keeps all ofher normal terms and conditionsexcept wages or salary while onordinary maternity leave. Holidayentitlement continues to build upas normal, for example.All the normal terms andconditions (except wages orsalary) apply during additionalmaternity leave as well asordinary maternity leave.You must allow a woman toreturn to her old job after takingordinary maternity leave. If shetakes additional maternity leaveyou can offer her a similar jobinstead, if it is not reasonablypractical to allow her to return toher old job.If her job becomes redundantduring the maternity leave,you must offer any suitablealternative work available.You must also seriouslyconsider a returning employee'sThe No-Nonsense Guide

Understandingemployees’ rightsYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness planrequest for flexible working.Refusal to offer such an optionmay amount to indirect sexdiscrimination.If there is an unavoidablehealth or safety risk to a newor expectant mother or herbaby, and you cannot find othersuitable work for her, you mustsuspend her on full pay.It is illegal for new mothers toreturn to work within two weeksof giving birth (four weeks forfactory workers).Next steps● Visit www.nibusinessinfo.co.uk/maternity● For more information, read:Suspension From Work OnMedical Or Maternity Grounds(ER10). Visitwww.delni.gov.uk/er10● The Labour Relations Agencyadvises on maternity leaveand pay. Contact 028 90321442;www.lra.org.ukPay onmaternity leaveMany pregnant women havethe right to receive a minimumlevel of pay during theirordinary maternity leave. Youcan claim all or most of it backfrom HM Revenue & CustomsPregnant women and those whohave just given birth are entitledto receive 39 weeks of statutorymaternity pay during theirmaternity leave if they:● have worked for you for acontinuous period of at least26 weeks by the end of the15th week before the week thebaby is due; and● earn more than the lowerearnings limit for NationalInsurance contributions (£107for the 2012–13 tax year).The rate of SMP for the firstsix weeks is 90 per cent ofthe woman’s average weeklyearnings. For the remaining 33weeks, SMP is either £135.45 perweek (2012-13) or 90 per centof the woman's average weeklyearnings, whichever is the lower.Statutory maternity payis subject to income tax andNational Insurance contributionsin the same way as normal pay.Employers recover statutorymaternity pay from the incometax and National Insurancecontributions they pay toHM Revenue & Customs.If your business’s total annualNational Insurance contributionsare £45,000 or less, you canrecover 100 per cent of statutorymaternity pay plus an additional3 per cent.If your National Insurancecontributions are above £45,000you can recover 92 per cent ofthe payments you make.You must record maternitypayments in the relevantsections of your P11, P14 andP35 tax forms (see Next stepsbelow).You can also use form SMP2to keep a record of statutorymaternity payments if youwish. This is available fromHM Revenue & Customs.All records must be kept forthree years.Next steps● Visit www.nibusinessinfo.co.uk/maternity● For information on PAYE or todownload PAYE tools includingan SMP calculator, visit www.nibusinessinfo.co.uk/paye● For further informationcontact the HM Revenue& Customs Employer Helpline:08457 143 143;www.hmrc.gov.uk/paye● To use an online calculator formaternity pay, visitwww.hmrc.gov.uk/calcs/smp.htmPaid paternity leaveWorking fathers and partnerscan take up to two weeks’leave following the birth of ababy and may be entitled tolonger if they care for the childwhile the mother returns towork. While off work they mayalso be entitled to statutorypaternity pay.To qualify for two weeks'ordinary paternity leave, anemployee must:● have or expect to have aresponsibility for the child’supbringing;● be the child’s father or themother’s husband, civilpartner or partner;● have worked continuouslyfor you for at least 26 weeksby the end of the 15th week75The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication76before the week the babywas due and have continuedworking for you until the birth.Paternity leave is also availableto adoptive parents — to oneperson in a couple adoptingjointly or to the partner of anindividual adopter.The adoptive parent takingpaternity leave must haveworked for you for at least 26weeks at the time they werematched with a child andcontinued to work for you since.It is not the case that onlymen can take paternity leave.In some instances a woman willbe entitled — for example, if sheis the civil partner of a womanwho has given birth, or if she isadopting jointly and her husbandor partner takes adoption leave.You can ask an employee tofill in a self-certificating form asevidence of their entitlement tostatutory paternity pay. You canuse HM Revenue & Customs formBecoming A Parent (SC3).Eligible employees can take ablock of either one or two wholeweeks’ leave — but not odd days.Leave must be taken within 56days of the child’s birth or, if thechild is born early, in the periodfrom the actual date of birthuntil 56 days after the expectedweek of birth. With adoption,paternity leave must be takenwithin 56 days of the child’splacement.Employees have the rightto return to the same job aftertaking paternity leave. You mustnot dismiss an employee or treatthem unfairly because they havetaken paternity leave.They are entitled to keep theirnormal terms and conditionsof employment — except thoserelating to wages or salary— while taking paternity leave.Most are also entitled toordinary paternity pay. The rate is£135.45 per week (2012-13) or 90per cent of the employee’s averageweekly earnings, whichever is thelower — though you can pay morethan this if you wish.Staff who earn less than thelower earnings limit for NationalInsurance contributions (£107for the 2012-13 tax year) do notqualify for statutory paternity pay.If the mother is entitled tostatutory maternity leave butreturns to work with at least twoweeks' entitlement remaining,the father can also takeadditional paternity leave to lookafter the child.Additional paternity leavecan be from two to 26 weeks'continuous leave. It can startfrom 20 weeks after the child'sbirth and must have finished bythe child's first birthday.Fathers who qualify forordinary statutory paternitypay also qualify for additionalstatutory paternity pay duringthe period when their partnersare entitled to SMP (but havereturned to work).You can recover statutoryordinary and additional paternitypay from the income tax andNational Insurance contributionsyou pay to HM Revenue &Customs.If your business’s total annualNational Insurance contributionsare £45,000 or less, you canclaim back all statutory paternitypay plus a compensationpayment of 3 per cent on top.Otherwise, you can claim 92 percent of the payments you make.You should record paternitypayments in the relevantsections of the P11, P14 andP35 tax forms available fromthe HM Revenue & Customs; anumber of explanatory bookletsare also available. All recordsmust be kept for three years.Next steps● Visit www.nibusinessinfo.co.uk/paternity● The Labour Relations Agencycan offer advice.Contact 028 9032 1442● Further informationis available from theHM Revenue & CustomsEmployer Helpline. Contact08457 143 143;www.hmrc.gov.uk/paye● HM Revenue & CustomsEmployer Orderline providesall relevant forms. Contact08457 646 646;www.hmrc.gov.uk/paye● To use an online calculator forpaternity pay, visitwww.hmrc.gov.uk/calcs/stat-calcs.htmPaid leave foradoptive parentsEmployees who are newlymatched with a child by anadoption agency can takeadoption leave if they haveworked for you for at least 26The No-Nonsense Guide

Understandingemployees’ rights}Reward employees whenthey've earned it — if theyaccumulate extra hoursworked in a month, givethem a day off. Flexibility isa two-way thing~Paul CreightonAdvanced Electronic Solutionsweeks. In most cases, while offwork, they are also entitled toa minimum level of statutoryadoption payOne member of a couple — oran individual — who adopts achild is entitled to adoption leaveand pay. The other member of acouple may qualify for paternityleave and pay (see Next Stepsbelow).To qualify for adoptionleave, an employee musthave worked continuously foryou for at least 26 weekswhen they are matched with achild by an approved adoptionagency.Employees must give youevidence from the adoptionagency as proof of entitlementto adoption leave and pay: forexample, a letter on headedpaper confirming the matching.Adoptive parents are entitledto up to 52 weeks’ adoptionleave. Adoption leave can startfrom the date of the child’splacement or from up to 14 daysbeforehand.Employees keep theirnormal terms and conditionsof employment — except thoserelating to wages or salary —while on adoption leave.Employees with averageweekly earnings above thelower earnings limit for NationalInsurance contributions (£107 forthe 2012-13 tax year) qualify forstatutory adoption pay (SAP).The period of entitlement toSAP is 39 weeks. The rate of SAPis £135.45 (2012-13) or 90 percent of the employee’s averageweekly earnings, whichever is thelower — though you can pay morethan this if you wish.You must not dismissemployees or treat them unfairlybecause they have takenadoption leave.Employers can recoverstatutory adoption pay fromthe income tax and NationalInsurance contributions they payto HM Revenue & Customs.If your business’s total annualNational Insurance contributionsare £45,000 or less, you canclaim back all statutory adoptionpay plus a compensationpayment of 3 per cent on top.If your National Insurancecontributions are above£45,000, you can claim 92 percent of the payments you make.You must record statutoryadoption pay in the relevantsections of your P11, P14 andP35 forms available from HMRevenue & Customs; a numberof explanatory booklets are alsoavailable (see Next steps below).All records must be kept forthree years.Next steps● See Paid paternity leave,page 75● Visit www.nibusinessinfo.co.uk/adoption● VFor information on PAYEor to download PAYE toolsincluding a statutory adoptionpay calculator, visit www.nibusinessinfo.co.uk/paye● The Labour Relations Agencyadvises on adoption leaveand pay for adoptive parents.Contact 028 9032 1442;www.lra.org.uk77The No-Nonsense Guide

78● For more information read:Employer Helpbook ForStatutory Adoption Pay (E16).Contact 08457 646 646;www.hmrc.gov.uk/helpsheets/e16.pdf● Further informationis available from theHM Revenue & CustomsEmployer Helpline. Contact08457 143 143● HM Revenue & CustomsEmployer Orderline providesall relevant forms. Contact08457 646 646;www.hmrc.gov.uk/payeUnpaid leave forparentsParents can take extra, unpaidtime off during the first fewyears of their children’s lives.Generally, you agree with youremployee how this parentalleave is to be takenMothers and fathers have a rightto take unpaid parental leave tolook after young and disabledchildren.Parents can take 13 weeks’unpaid parental leave for eachchild. They can take leave untilthe child’s fifth birthday oruntil five years after they haveadopted a child. They must havecompleted a year’s continuousservice with you.Parents of disabled childrencan take 18 weeks’ unpaid leaveuntil the child’s 18th birthday.Employees remain employed}A more mature employeemay have familycommitments and needflexibility, but they canbe very trustworthy,responsible and reliable~Paul CreightonAdvanced Electronic Solutionswhile on parental leave. Somecontractual terms and conditions,such as those relating to noticeperiods and redundancy, stillapply.You must allow staff returningfrom parental leave of fourweeks or less to return to thesame job.With longer periods of leave,you must let them go back tothe same job or, if that is notreasonably practical, to a jobwith similar or better terms andconditions.You can agree how and whenleave is to be taken with staffor their representatives, thoughthere is a fallback scheme ifthere is no agreement. Underthis, up to four weeks’ leave canbe taken in one year, in blocks ofone week or more at a time.You can postpone parentalleave if you think an employee’sabsence would cause too muchdisruption for your business— perhaps at a seasonal peakor when an employee’s skillsare essential to the businessat a particular time. You mustdiscuss the postponement withthe employee and give themwritten notice. The leave can bepostponed for a maximum of sixmonths.Next steps● Visit www.nibusinessinfo.co.uk/parentalleave● The Labour Relations Agencycan offer advice on youremployees’ entitlement tounpaid parental leave.Contact 028 9032 1442;www.lra.org.ukThe No-Nonsense Guide

Understandingemployees’ rightsYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan● For more information aboutparental leave, read:Parental Leave: A Guide ForEmployers And Employees(ER25). Contactwww.delni.gov.uk/er25Employees andflexible workingParents and carers of adultsmay request flexible workingpatterns. In many cases youmust consider their requestseriously and provide a clearbusiness reason if you refuse itYou are required to considerseriously any requests forflexible working patterns thatyou receive from:● parents of children under 17 orof disabled children under 18;● carers of adults — the carermust be the spouse, partner,civil partner or a near relativeof the adult in question, ormust live at the same addressas them.starting half an hour later andmaking up the time later in theday.Employees have to makea written application to workflexibly. You are required to meetthem within 28 days to discusstheir request.You then have 14 days to writeto the employee with your decision.Staff have a further 14 days toappeal if they disagree with it.If a disabled person needs towork different hours for a reasonrelated to their disability — forexample to avoid using publictransport during rush hour — itmay be discriminatory if yourefuse this.Next steps● Visit www.nibusinessinfo.co.uk/flexiblework● For more information read:Flexible Working: A Guide ForEmployers And Employees(ER36). Contactwww.delni.gov.uk/er36● See Workers with disabilities,page 7179In order to make a request forflexible working, an employeemust have worked continuouslyfor you for at least 26 weeks. Ifyou have a clear business reasonwhy the work pattern cannot beaccommodated, you may refusethe request.Flexible working covers a widerange of working patterns, suchas annualised hours, flexitime,job-sharing, shift-working andterm-time working. Or it mightsimply involve an employeeThe No-Nonsense Guide

All businesses need a framework for both employees’ and employers’ conduct and procedures forhandling disciplinary, grievance and dismissal issues. Here’s the way to go about itResolving problemswith employees80Discipline andgrievance issuesInformation on disciplineand grievance must beincluded in employees’ writtenstatements of employmentdetails. All businesses are alsorequired to have minimumdisciplinary and grievanceprocedures in placeYou should draw up disciplinaryrules to set standards of conductat work and explain whatbehaviour is unacceptable. Therules could cover areas such as:● timekeeping or absence;● health and safety;● standards of work;● personal appearance;● use of company facilities;● discrimination.You must include details ofyour disciplinary rules andgrievance procedures in yourwritten statement of terms andconditions. You must explain:● what your disciplinary rules are;● to whom the employee shouldapply if they are dissatisfiedwith a disciplinary decision orwant to air a grievance;● how to apply and what furtherprocedures, if any, will follow.For the first and last of theseyou can also refer employeesto a separate document thatthey should be able to easilyget hold of if these details arenot fully contained in the writtenstatement.Disciplinary procedures set outthe action you will take againststaff who break your rules.All businesses have to putminimum disciplinary proceduresin place, including the followingstages:● informing the employee inwriting of the problem;● meeting to discuss theproblem with the employee— who has the right to beaccompanied by a colleagueor trade union official;● after the meeting, informingthe employee of theemployer’s decision and oftheir right to appeal against it;● an appeal, if the employeerequests one.Minor breaches of rules shouldbe dealt with informally.Examples of misconductyou might deal with using yourdisciplinary procedure couldinclude persistent lateness orunauthorised absence.Gross misconduct is anaction so serious that you maydismiss an employee for theirfirst offence without notice orpay in lieu of notice. In practice,however, you should generallysuspend the employee on fullpay and investigate the incidentbefore dismissal. The employeeshould be given a chance to putforward their case at a meeting.Examples of offences whichare normally regarded as grossmisconduct include: theft; fraud;fighting; assault; deliberatedamage to company property;being under the influence ofalcohol or illegal drugs; seriousnegligence which causesunacceptable loss, damageor injury; serious acts ofinsubordination.A grievance procedure allowsindividual workers to raisegrievances with managementabout their employment. Issuesthat may cause grievancesinclude:● terms and conditions ofemployment;● health and safety;● bullying and harassment;● new working practices;● organisational change;● equal opportunities.All businesses have to put minimumgrievance procedures in place,including the following stages:● The employee informs theemployer in writing of theirgrievance.● The employee is invited toa meeting to discuss thegrievance — they have theright to be accompanied bya colleague or trade unionofficial to certain hearings.● The employer responds to thegrievance.● A right of appeal for theemployee if they feel thegrievance has not beensatisfactorily dealt with.The Labour Relations Agency(LRA) Code of Practice onDisciplinary and GrievanceProcedures provides practicalguidance on drawing updisciplinary and grievanceprocedures.Next steps● Visit www.nibusinessinfo.co.uk/grievanceThe No-Nonsense Guide

Resolving problemswith employeesCheck for changes in the lawRegulations, figures and sumsof money may have changedsince publication● The Labour Relations Agencyhelpline can offer advice.Contact 028 9032 1442The LRA Codeof Practice onDisciplinary andGrievance ProceduresYou can use the LabourRelations Agency’s code ofpractice to help you set upyour rules and procedures. Thismakes sure problems are dealtwith fairly and that employeesget the chance to put forwardtheir side of the storyThe Labour Relations Agency(LRA) Code of Practice onDisciplinary and GrievanceProcedures states that gooddisciplinary procedures should:● be in writing;● be non-discriminatory;● ensure information is keptconfidential;● set out what disciplinaryactions might be taken;● state which levels ofmanagement have theauthority to take disciplinaryaction;● ensure employees areinformed of complaintsagainst them and any relevantevidence before a hearing;● give employees the chanceto put forward their side ofthe story before a decision isreached;● not involve dismissal for afirst offence, except for gross}A business can’t functionsuccessfully if its peopledon’t turn up when theyneed to — it makes amanager’s job muchmore difficult~Jonathan HannaMcCauley Trailers Ltdmisconduct;● ensure employees are givenan explanation for anypenalty;● give employees the right toappeal against any decision andexplain how they can do so.The Code of Practice also statesthat good grievance proceduresshould make it easy foremployees to raise issues withmanagement. They should:● be clear and in writing;● allow matters to be dealt withinformally if possible;● maintain confidentiality;● allow employees to have acompanion at meetings.Next steps● Visit www.nibusinessinfo.co.uk/grievance● Read: Labour RelationsAgency Code Of Practice OnDisciplinary And GrievanceProcedures. Contact 028 90321442; www.lra.org.ukMonitoring emailand web useYou must inform employeesif you intend to monitor theirweb and email use — preferablymaking it part of theiremployment contracts. Youcan only inspect the content ofindividual emails in a numberof restricted circumstancesThere are legal restrictions onhow you can monitor employees’81The No-Nonsense Guide

You also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plan82use of the web and email. Butthis is a complex area whichis covered by a range of lawsincluding: the Regulation ofInvestigatory Powers Act, theData Protection Act and theHuman Rights Act. If in doubtyou should seek legal advice.You must inform employeesif you intend to carry out anymonitoring of their email andweb use — whether this is ofinternet and email traffic or thecontents of emails. Include thisin their employment contractsor refer to a separate internetpolicy which mentions it.Remember that monitoring isintrusive, so consider carefullywhether the benefits aresufficient to justify its use.In general you can monitoremail and internet traffic,installing software which logswebsites visited and emailssent and received togetherwith addresses (but not theircontents).You can inspect the contentof individual emails without aworker’s consent for a numberof specific business purposes.These include:● recording transactions orother important businesscommunications;● making sure employees arecomplying with the law andyour internal policies;● preventing abuse of yourtelecoms system;● checking emails when staffare on leave.If you want to monitorcommunications for otherpurposes, or are not surewhether you have the right toread an email, you must getpermission to do so — from boththe sender and recipient.Next steps● Visit www.nibusinessinfo.co.uk/emailpolicy● The law in this area can becomplex and you should actcarefully or consult a solicitor● For more information,read: Quick Guide To TheEmployment Practices Code.Contact 08453 091 091; www.ico.gov.ukValid reasons fordismissalIf you are dismissing anemployee, you must makesure you are acting fairly andreasonably. There are a numberof potentially valid reasons fordismissal — from redundancy tothe employee being unable todo the jobEmployees with at least a year’sservice have the right not to beunfairly dismissed.They can complain to anindustrial tribunal if theythink they have been unfairlydismissed. If the reason fordismissal is one of a numberwhich the law regards as‘automatically unfair’, anemployee can make a tribunalclaim regardless of their lengthof service.For a dismissal to be fair, youmust have a valid reason fordismissing the employee.Valid reasons relate to:● the employee’s ability orqualifications to do the job;● the employee’s conduct;● the employee’s position beingmade redundant;● any legal requirementspreventing the employee fromcontinuing to do the job (forexample, if a van driver isbanned from driving);● the employee’s retirement,as long as the employerhas complied with a dutyto consider any employeerequest to keep working;● some other ‘substantial’reason not covered by thereasons above.You must also act reasonablyin dismissing the employee (forexample, by giving them a chanceto improve or taking some otherform of disciplinary action).There are no set rules on whatis reasonable — it will depend onall the circumstances, includingyour business’s size andadministrative resources.You may be required to proveto an industrial tribunal youhave acted reasonably if anemployee makes a claim. Youshould be able to show you haveacted fairly and consistently.A dismissal is automaticallyunfair if you fail to followstatutory minimum disciplinaryprocedures before taking action— and tribunal awards may beincreased.Remember that a dismissalalso takes place when anemployee’s fixed-term contractThe No-Nonsense Guide

Resolving problemswith employees}If you have a problem withserious misconduct, youmust deal with it quickly, Ican’t stress that enough~Jonathan HannaMcCauley Trailers Ltdexpires but is not renewed.Next steps● See The LRA Code of Practiceon Disciplinary and GrievanceProcedures, page 81● See Dismissals which areautomatically unfair, below● See Handling redundancy,page 87● Visit www.nibusinessinfo.co.uk/dismissal● The Labour Relations Agencyhelpline can offer advice.Contact 028 9032 1442● For more information ondismissal, read: Rights ToNotice And Reasons ForDismissal (ER15). Visitwww.delni.gov.uk/er15Dismissals which areautomatically unfairSome dismissals are regarded asautomatically unfair. You mustfollow minimum disciplinaryprocedures and must notdismiss an employee for reasonsthat include pregnancy andseeking to assert statutoryemployment rightsIf you dismiss an employee orselect them for redundancywhen others in similarcircumstances are not selectedit will automatically be unfair,regardless of their length ofservice, if your reasons for doingit include one or more of the listbelow:● maternity-related grounds;● requesting flexible working;● taking particular kinds ofaction on health and safetygrounds, such as carryingout or proposing to carry outduties as a health and safetyrepresentative;● carrying out or proposingto carry out functions as anemployee representative;● membership or nonmembershipof a trade union,or taking part in the activitiesof an independent trade union;● carrying out or proposing tocarry out duties as a trusteeof a company pension scheme;● seeking to assert a wide rangeof statutory employmentrights, including rights underminimum wage, tax credits orworking time legislation;● disclosing certain kinds ofwrongdoing in the workplace(whistleblowing);● taking — or trying to take —parental or adoptive leave, ortime off for dependants;● relating to the transfer of anundertaking, unless it can beestablished that the dismissalwas for an economic, technicalor organisational reason;● refusing to work on Sunday(subject to certain conditions);● taking lawfully organisedindustrial action lasting twelveweeks or less (longer if you donot take reasonable steps toresolve the dispute);● retirement — you no longerhave the right to compelemployees to retire.This list is not exhaustive.83The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication84A dismissal is alsoautomatically unfair if you failto follow statutory minimumdisciplinary procedures beforetaking action — and tribunalawards may be increased.Next steps● See Race, sex and agediscrimination, page 68● See Religious and politicaldiscrimination, page 70● See Workers with disabilities,page 71● See When an employee ispregnant, page 74● See Unpaid leave for parents,page 78● See Time off work other thanannual leave, page 67● Visit www.nibusinessinfo.co.uk/dismissalDismissals whichare automaticallyunlawfulSome reasons for dismissal areautomatically against the lawIt is unlawful to dismiss a workeror select them for redundancybecause of their:● sex (including genderreassignment);● marriage or civil partnershipstatus;● race, nationality or ethnicorigins;● disability;● age (unless objectivelyjustifiable);● sexual orientation;}Unacceptable behavioursuch as bullying sapsmorale. If some employeesmisbehave, are always lateor continually take‘sickies’, it affects others~Jonathan HannaMcCauley Trailers Ltd● religion;● political opinion.A worker — who can be anemployee or any individualwho works for you who is notgenuinely self-employed —who believes they have beendismissed for such a reasoncould make a discriminationclaim against you.Next steps● See Race, sex and agediscrimination, page 68● See Religious and politicaldiscrimination, page 70● See Workers with disabilities,page 71● See When an employee ispregnant, page 74● See Unpaid leave for parents,page 78● See Time off work other thanannual leave, page 67● For more information, contactthe Labour Relations Agencyhelpline: 028 9032 1442.● Advice on preventingworkplace discrimination isavailable from the EqualityCommission.Contact 028 90 890 890;www.equalityni.orgGiving notice ofdismissalIf you dismiss an employee,they are entitled to a minimumamount of notice — unless it isfor gross misconductThe No-Nonsense Guide

Resolving problemswith employeesThe minimum amount of noticeyou must give an employeeyou are dismissing dependson how long they have beencontinuously employed. You caninclude longer periods of noticein your employment contracts ifyou wish.You must give one week’snotice to staff with at least onemonth’s service. Employees withtwo years’ service must get atleast two weeks’ notice.You must then give an extraweek’s notice for each furtheryear of continuous employmentwith you up to a maximum of 12weeks’ notice for service of 12years or more.You are not obliged to givenotice if you are dismissing anemployee for gross misconduct.You must pay employees attheir normal rate during theirnotice period. They have theright to a minimum rate of pay ifthey are on sick leave, holiday orordinary maternity leave duringthe period of notice.If you do not provide work foran employee on a day when youwould normally do so becausethe business is not working atits normal level, the employee is‘laid off’.But you cannot refuse topay them because work isn’tavailable, unless their contractof employment states that youhave the right to do so.Employees may agree to belaid off without pay in particularcircumstances, such aswhere redundancy would be theonly alternative, but this doesnot give you the right to lay themoff in future.Most employees are entitledto a statutory guaranteepayment for any complete day oflay-off without pay — but with alimit of five days’ payment in anythree-month period.Next steps● See Discipline and grievanceissues, page 80● Visit www.nibusinessinfo.co.uk/dismissal● For more information, read:Rights To Notice And ReasonsFor Dismissal (ER15);Guarantee Payments (ER14).Visitwww.delni.gov.uk/erbookletsTemporary Lay-Off And Short-Time Working (InformationNote No. 5). Contact028 9032 1442; www.lra.org.ukWritten reasons fordismissalThere are cases in which youmay be obliged to providewritten reasons for dismissingan employeeIf an employee who has beencontinuously employed with youfor at least one year asks forthe reasons for their dismissal— orally or in writing — you mustprovide a written statement ofthe reasons within 14 days.If you dismiss a woman who ispregnant or on maternity leaveor an employee who is takingadoption leave, you must givethem a written statement ofyour reasons whether they askfor one or not and regardless oftheir length of service.Next steps● For more information, read:Rights To Notice And ReasonsFor Dismissal (ER15). Visitwww.delni.gov.uk/er15ConstructivedismissalAn employee may be entitledto resign and make an unfairdismissal claim to an industrialtribunal if you breach afundamental term of theiremployment contract — bycutting their salary or failingto provide a safe place of work,for exampleIf you breach a fundamental termof an employee’s contract, theymay be entitled to resign. This isknown as constructive dismissal.If the employee considers theconstructive dismissal unfair andhas at least one year’s servicewith you (two years if theystarted their job on or after 6April 2012), they can make anunfair dismissal complaint to anindustrial tribunal. The employeemust first raise the matter withyou in writing, unless the caseinvolves harassment or bullying.Breaches of contract thatmay give rise to constructivedismissal claims might includeanything which makes it impossibleor intolerable for the employee to85The No-Nonsense Guide

86It worked for meHow Imaintaingood staffconductFormed in 1954,Toomebridge-based McCauleyTrailers Ltd has grown tobecome a market-leadingmanufacturer of agriculturaland commercial trailers. Asoperations manager JonathanHanna reveals, thankfullystaff misconduct isn’t a majorissue for the company, butthat is a result of effectivemanagement and a highlymotivated workforce} Staff misconduct canCommunicating:severely damage a business.Unnecessary absence and poortime keeping, for example,increase costs and harmproductivity and efficiency.Unacceptable behavioursuch as bullying saps morale.If some employees misbehave,are always late or continuallytake “sickies”, it affectsothers. Employees actingunprofessionally can damageyour reputation, especially ifcustomers witness it.As a manager you mustact quickly and decisivelywhenever staff misconductcomes to your attention. Wehave a good team here, youngand well motivated, so it’snot a big issue but still needsmanaging. Don't take goodconduct for granted.Employees need to knowexactly what’s expectedof them. A few years agowe didn’t have formal staffconduct rules; it was anunspoken thing. That wasn’tright so we worked with InvestNorthern Ireland to draw uprules for our employees, whichhelped ensure everything waslegal. The result was a staffhandbook, which provides newand existing employees withclear guidance on conduct andwhat to do in certain scenarios(if they are ill, for example). Italso details procedures followingserious misconduct.For lesser misdemeanours, aquiet word in the staff member’sear is usually enough. We alsohave regular staff appraisalswhen issues can be raised. If aproblem were to persist we'dmake it a formal disciplinarymatter and we have proceduresin place. This way we can beconfident that the action we takeis fair and legal.Every now and again, it’s agood idea to remind staff ofkey conduct requirements. Wehave regular staff meetingsat which conduct issues canbe raised and we might alsosend out a company-wide emailJonathan sawthe value of a staff handbook— communication is veryimportant. Making employeesfeel part of the business alsohelps to maintain good staffconduct.If you have a problemwith serious misconduct youmust deal with it quickly, Ican’t stress that enough.For other minor problems itdoesn’t pay to get too heavyhanded,although you mustbe firm. Common sense andunderstanding are important,but you must be authoritativewhen necessary, even if thatmeans making it a formaldisciplinary matter.~McCauley Trailers LtdToomebridge, County AntrimTel 028 7965 9191Email info@mccauleys.co.ukwww.mccauleys.co.ukMarie Therese Hurson/Harrison PhotographyThe No-Nonsense Guide

Resolving problemswith employeesYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plancontinue doing the job.Examples include:● cutting — or attempting tocut — an employee’s wages orsalary or other contractualbenefits;● transferring an employee toa different job or location inthe absence of any stated orimplied contractual right todo so;● failing to provide a safe placeof work;● subjecting a supervisor ormanager to unwarrantedcriticism or abuse in thepresence of colleagues orsubordinates.Next steps● Visit www.nibusinessinfo.co.uk/constructivedismissal● For more information contactthe Labour Relations Agencyhelpline: 028 9032 1442Handling redundancyIf there is a change in the wayyour business operates or ifyou experience a reduction inbusiness, there may no longerbe a job for an employee todo, so their position becomesredundant. Redundancy can beone of the most intimidatingaspects of running a business,but following establishedguidelines will ensure youfollow the correct pathRedundancy is when you dismissan employee because:}Every now and again it’sa good idea to remindstaff of key conductrequirements, just toensure standards aremaintained~Jonathan HannaMcCauley Trailers Ltd● you close your business;● you close the employee’sworkplace;● there is a diminishing need forthe employee to do work of aparticular type.Normally the job must havedisappeared before you considerredundancy, for example,through a decline in business orthe introduction of automatedequipment. You should takereasonable steps to avoidcompulsory redundancies byconsidering alternatives suchas making working time shorter,early retirement or sheddingcontract labour.Selection should alwaysbe objective. If you base it onperformance, you will need toback it up with evidence— perhaps from an existingappraisal system.People whose jobs are maderedundant have the right tobe offered suitable alternativeemployment wherever possible.Most employees who are maderedundant have the right not tobe unfairly dismissed. Employeeswith less than one year’sservice do not have the right tocomplain (two years if startingtheir job on or after 6 April2012) to an industrial tribunal,unless the reason for dismissalis automatically unfair (see Validreasons for dismissal, page82, and Dismissals which areautomatically unfair, page 83).Employees who are maderedundant have the right toreasonable time off on full payfor job-hunting or to arrangetraining. There are minimum87The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication88levels of redundancy pay thatemployees may be entitled to(see Qualifying for redundancypay, right).If you are making 20 or moreemployees redundant within aperiod of 90 days or less, youmust consult with employees’representatives (or a trade unionthat the employees belong towhich is recognised to negotiateon their behalf). You mustalso notify the Department ofEnterprise, Trade and Investmentusing form HR1.When the consultation begins,you must give employees, theirrepresentatives or the unionwritten details of:● the reason for theredundancies;● numbers and types of theemployees involved;● the total number of employeesof each of these types youemploy at the establishment;● how you plan to select theemployees to make redundant;● how you will carry out theredundancies;● how you will calculateredundancy payments.}Common sense andunderstanding areimportant, but you mustbe authoritative whennecessary, even if thatmeans making it a formaldisciplinary matter~Jonathan HannaMcCauley Trailers Ltd● See Dismissals which areautomatically unfair, page 83● Visit www.nibusinessinfo.co.uk/redundancy● For more information, read:Redundancy ConsultationAnd Notification (ER4);Redundancy EntitlementStatutory Rights (ER3). Visitwww.delni.gov.uk/erbooklets● Form HR1 is available from theStatistics Research Branch ofthe Department of Enterprise,Trade and Investment.Contact: 028 9052 9311;www.detini.gov.uk/stats_redundancies_1.pdf● The Labour Relations Agencyhelpline can offer advice.Contact 028 9032 1442Qualifying forredundancy payYou are required to paycertain minimum amountsto employees who qualify forredundancy pay when they losetheir jobsConsultation with employeesor unions does not have toend in agreement, but it mustbe properly carried out. Whileconsultation is not a statutoryrequirement if fewer than 20employees are to be maderedundant, it is advisable as bestpractice.Next steps● See Valid reasons fordismissal, page 82Employees are entitled tostatutory redundancy pay if theyare made redundant and haveat least two years’ continuousservice.Payments are based on theemployee’s continuous serviceand their weekly pay — thoughyou can pay more if you wish:● service is counted up to amaximum of 20 years;● each year of continuousservice up to the age of 21entitles the employee to half aThe No-Nonsense Guide

Resolving problemswith employeesweek’s pay;● each year of continuousservice between the agesof 22 and 40 entitles theemployee to oneweek’s pay;● each year of continuousservice from the age of 41onwards entitles the employeeto 1.5 weeks’ pay.A week’s pay is based on actualincome or average weeklyearnings.Statutory redundancy pay isexempt from tax and NationalInsurance contributions, but iscapped at £430 per week sinceFebruary 2012.Any additional severance paycan usually be paid tax-free upto a total of £30,000, includingstatutory redundancy pay. Thismay depend on the terms of theemployment contract.Next steps● Visit www.nibusinessinfo.co.uk/redundancy● For more information, read:Redundancy EntitlementStatutory Rights (ER3).Visit www.delni.gov.uk/er3● The Labour Relations Agencyhelpline can offer advice.Contact 028 9032 1442Sale or transferof a businessEmployees’ rights are protectedwhen a business is sold off or isgiven to another member of theowner’s family. They cannot befairly dismissed unless you canprove you have good economic,technical or organisationalreasonsRegulations protect employees’terms and conditions ofemployment when the businessthey work for is transferred toa new owner. This can be whenall or part of a business is soldas a going concern or given toanother member of the owner’sfamily to run.Employees’ terms andconditions cannot lawfully bechanged if the transfer is thereason for such changes.An employee’s period ofcontinuous employment is notbroken by the transfer.As the new owner of atransferred business, you cannotchoose which employees totake on. You take over thecontracts of all employees whowere employed in the businessimmediately before the transfer.You also take over the contractsof those who would have beenemployed if they had not beenunfairly dismissed for a reasonconnected with the transfer.If you are transferring yourbusiness to someone else, youmust inform employees who willbe affected and consult theirrepresentatives. These can beofficials of a recognised tradeunion or representatives electedby the employees.Neither the old nor newemployer can fairly dismissan employee because ofthe transfer unless there isan economic, technical ororganisational reason. You willneed to show that you actedreasonably in using one of thesejustifications.Employees’ terms andconditions transfer with themto the new employer. There arelimitations to the variationsto terms and conditions onwhich employees and the newemployer are allowed to agree.The only contractual rightsthat are not transferred relate tooccupational pensions. However,where pension rights have beenestablished you have to matchemployee contributions of up tosix per cent of their salary, oroffer an equivalent alternative.You also take over anycollective agreements made onbehalf of employees.Next steps● Visit www.nibusinessinfo.co.uk/sell● Further information isavailable from the Departmentfor Employment and Learning.Visit www.delni.gov.uk/tupe● Read: Transfer OfUndertakings (InformationNote No. 6). Contact028 9032 1442; www.lra.org.uk89The No-Nonsense Guide

There is a wide range of help for new and developing businesses in Northern Ireland — rangingfrom professional advice and training to grants and other forms of financial helpGovernment advice andsupport for your business90Your first steps whenstarting a businessIf you are thinking of startinga business in NorthernIreland, there are a number ofprogrammes and organisationsin place to help you turnyour business idea into a realbusinessStart up support: Writing abusiness plan is perhaps oneof the most important steps anentrepreneur can take in gettingtheir business off the ground.Invest Northern Ireland can helpyou develop a plan that will getyour business up and running.With our team of businessesadvisors, we can help you todevelop a vision and objectivesfor your new business, developa unique proposition for thebusiness and help with legal,finance and marketing issues youmay encounter.Online advice: thewww.nibusinessinfo.co.ukwebsite provides businessesand entrepreneurs with morethan 5,000 pages of constantlyupdated advice, guidance andtools you’ll need to succeed. It isa fast track to business success,offering all the information,advice and support needed byNorthern Ireland businesses.Support for young people:starting your own business canbe both financially rewardingand hugely satisfying. If youare aged 30 or under, you canbenefit from a range of supportespecially developed for youngentrepreneurs. This is providedby our youth enterprise partners,Advantage NI and The Prince’sTrust.Advantage NI offers support andadvice to anyone aged between16 and 30 looking to start upand develop their own business.The Prince's Trust is a charityproviding training, mentoring andfinancial assistance to peopleaged between 18 and 30 to helpthem start their own business.Enterprise Northern Ireland(ENI): a network of 32 LocalEnterprise Agencies whichprovide workspace, advice andsupport for small businessesand undertake local economicdevelopment activity.Other organisations: there is awide range of other bodies thatmay be able to help you. Theseinclude:● your district council;● Northern Ireland Chamber ofCommerce;● for businesses in rural areas,the Department of Agricultureand Rural Development (DARD);● InterTradeIreland, whichpromotes access to finance,business development andincreased trade links with theRepublic of Ireland;● a variety of networkssupporting women in business;● the Ulster CommunityInvestment Trust, whichprovides loans and support tocommunity enterprises.Next steps● Contact the Go for it Helpline:0800 027 0639; www.goforitni.com● Invest Northern Ireland:0800 181 4422;www.investni.com;www.nibusinessinfo.co.uk/startup● Enterprise Northern Ireland.Contact 028 7776 3555;www.enterpriseni.com● Prince’s Trust NI. Contact:028 9074 5454;www.princes-trust.org.uk● Advantage NI. Contact:028 9335 6730;www.advantage-ni.com● NI Chamber of Commerce.Contact 028 9024 4113;www.northernirelandchamber.com● DARD. Contact: 028 9052 4999;www.dardni.gov.uk● Ulster Community InvestmentTrust. Contact: 028 9031 5003;www.ucitltd.comIf your businessexports or innovatesInvest NI offers the NorthernIreland business communitya single point of contact,providing high-quality services,support and expert advice.If your business is ready toexport or innovate its wayto significant growth, thencontact us on our Helpline0800 181 4422 and talk toone of our specially trainedadvisers.The No-Nonsense Guide

Government advice andsupport for your businessYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice – frommarket research to writing abusiness planInvest NI is the Government’seconomic development agencyfor Northern Ireland.It provides Northern Irelandbusinesses with a wide rangeof practical advice and supportto encourage them to becomemore entrepreneurial, moreinnovative, and to operate moreinternationally. And it offersspecialist support services to helpbusinesses compete in marketsoutside Northern Ireland.Invest NI can provide help in arange of areas, including:● starting a business;● growing your business;● maximising efficiencies;● product development;● selling outside NorthernIreland;● locating your business inNorthern Ireland;● business advice andinformation through our www.nibusinessinfo.co.uk website.Starting to Export: if yourbusiness sells its goods orservices outside NorthernIreland, Invest NI can help youget started in new markets, witha range of support and advicefor first time exporters. Thissupport is available to start-upsand to existing businesses thathave been trading for less thantwo years.High Growth Start up support:if your business is built aroundan innovative idea or newtechnology with high growthpotential in export markets,then specialised support isavailable to you. Invest NI willwork alongside your team to}I often don't have time tofind out about businessissues myself, so I useInvest Northern Ireland.They are always quickto respond to anyquestions I have~Brian McMahonMcMahon Engineeringhelp you develop a competitivebusiness, providing support suchas technical, advisory or financialsupport.Next steps● For expert help and guidancewith developing an existingbusiness, contact InvestNorthern Ireland: 0800 1814422; www.investni.comwww.nibusinessinfo.co.uk/grow● See Raising finance for yourbusiness, belowRaising finance foryour businessA wide range of schemesprovide help and finance in theform of loans and grants forstart-up and small businessesThere is a range of bodies thatmight be able to provide youwith loans, grants and othertypes of business finance. Thefollowing list is not exhaustive.A number of schemes existto provide financial assistanceto agricultural businesses,particularly those diversifying withnew business ventures. Grantsand other financial-assistanceschemes are operated by theDepartment of Agriculture andRural Development (DARD).Credit unions are a potentialsource of low-cost finance.Enterprise Northern Irelandoperates a loan fund for new91The No-Nonsense Guide

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication92start-ups and existing localbusinesses. This is availablethrough the local enterpriseagency network.In certain circumstancesthe Government will act as aguarantor of loans to smallbusinesses with viable businessproposals. The EnterpriseFinance Guarantee (EFG) covers75 per cent of the loan amount,for which the borrower paysan interest premium of 2 percent. The scheme is available tobusinesses with a turnover of upto £25 million. It applies to loansof between £1,000 and £1 million.Next steps● Visit www.nibusinessinfo.co.uk/startupfinance● For more information aboutthe Enterprise NI Loan Fund,contact Enterprise NI:028 7776 3555;www.enterpriseni.com● Contact Prince’s Trust NI:028 9074 5454;www.princes-trust.org.uk● Contact the Irish League ofCredit Unions:00 353 1 614 6700;www.creditunion.ie● Contact the Ulster Federationof Credit Unions:028 9030 1204;www.ufcu.co.uk● For more informationabout the Enterprise FinanceGuarantee, visit:www.bis.gov.uk/policies/enterprise-and-businesssupport/access-to-finance/enterprise-finance-guarantee}I got a lot from theprogramme for newbusinesses that InvestNI runs — some usefulpractical advice and,perhaps more thananything, access to somegreat contacts~Adam EwartKaracha Music LimitedEquity finance foryour businessEquity finance involves raisingmoney from potential investorsin return for a stakeholding inyour business. There is a rangeof organisations which can helpyou access such financeYou may be able to attract equityfinance from venture capitalfirms or from business angels,wealthy individuals who invest innew and growing businesses inreturn for a share of the equity.Investors expect high returns tobalance the risk they take on.In Northern Ireland theHALO initiative helps connectentrepreneurs with businessangels (see Next steps below).InterTradeIreland’s EquityNetwork helps businessesidentify potential sources offinance, including venture capitalfirms and business angels.Members of the British PrivateEquity and Venture CapitalAssociation invest in unquotedbusinesses, from start-ups andexpanding businesses with growthpotential to management buy-outs.The Irish Venture CapitalAssociation represents venturecapital firms in Northern Irelandand the Republic of Ireland.Northern Ireland Spin-Out(NISPO) Funds provide a rangeof support for early-stagetechnology companies, includingventure capital and a proof-ofconceptgrant.Next stepsThe No-Nonsense Guide

Government advice andsupport for your business● Visit www.nibusinessinfo.co.uk/equityfinance● Contact Invest NI about theAccess to Capital Initiative:0800 181 4422; www.investni.com● Halo matches entrepreneursand private investors. Contactwww.haloni.com● Contact InterTradeIreland’sEquity Network:028 3083 4100;www.intertradeireland.com● Contact the British PrivateEquity and Venture CapitalAssociation: 020 7420 1800;www.bvca.co.uk● Contact the Irish VentureCapital Association:00 353 1 276 4647;www.ivca.ie● Contact Northern IrelandSpin Out Funds:www.nispofunds.comTax relief and creditsto help research anddevelopmentthan the R&D tax relief to whichyou are entitled, you can claima payment worth up to 14 percent of your company's lossesdue to spending on researchand development. This is calledthe payable R&D tax credit andthe payment is made to you byHM Revenue & Customs.A company can claim R&D taxrelief and the payable R&D taxcredit even though it has notstarted to trade for tax purposes.Check with your accountant ifyou think you might benefit fromthis option.Next steps● Visit www.nibusinessinfo.co.uk/rdtaxrelief● To find out more about R&Dtax relief and credits, contactyour HM Revenue & Customsoffice orwww.hmrc.gov.uk/randdTraining for you andyour workforcematerials and salaries.The Department forEmployment and Learning(DEL) runs a training supportprogramme called the Bridgeto Employment. This providescustomised training coursesbuilt around the skill needs ofparticipating businesses.learndirect Business can helpyou gain skills to deal with theday-to-day issues that confrontyour business.Steps to Work is aprogramme that providesfree training, work experienceand opportunities to gainqualifications. It is available toanyone aged 18 or over who isreceiving certain benefits or whois not working and not receivingbenefits.Pathways to Work helpspeople with health conditionsand disabilities to consider theiroptions for returning to work.Participants are allocated aspecially trained advisor to helpthem decide on the steps to take.Next steps93Tax relief and credits areavailable to small and mediumsizedcompanies to encourageinvestment in research anddevelopmentWhen you are working outyour company's profits for taxpurposes you can deduct 175per cent of qualifying researchand development spending.This is called R&D (research anddevelopment) tax relief.If your company is not inprofit or if its profits are lessA range of training help isavailable for people settingup and running their ownbusinessesInvest NI supports trainingand development with awide range of programmesand services, including theBusiness Improvement TrainingProgramme. Support includespractical advice and guidanceas well as contributions towardthe costs of course fees, training● Visit www.nibusinessinfo.co.uk/skills● Contact Invest NI:0800 181 4422;www.investni.com● Contact the Department forEmployment and Learning:028 9044 1880;www.delni.gov.uk● Contact learndirect Business:0800 101 901;www.learndirect-business.co.ukThe No-Nonsense Guide

94Investing in thesocial economyInvest NI is aware of theimportance of the socialeconomy sector and theimpact it makes to theNorthern Ireland economy,in terms of both economicactivity and employment. Itis estimated that there areover 1,000 social enterprisesin Northern IrelandSocial enterprises can anddo play a significant role inthe regeneration of areas ofhigh social need, by generatingsources of income, promotinginnovation and entrepreneurshipand helping to create sustainableand cohesive communities.The Social EntrepreneurshipProgrammeInvest NI’s SocialEntrepreneurship Programmehelps social entrepreneurs tostart and grow their business,helping them to develop theskills and capabilities they needto make an impact on the localeconomy.Find out more and downloadyour complete guide to the widerange of support available forsocial entrepreneurs at www.investni.com/support_for_social_enterprises.pdfOther sources of supportThere are a wide number ofgovernment agencies andbusinesses which can offeradvice, finance, support andtraining for those wishing toestablish a social enterprise.Enterprise Northern Irelandcurrently delivers the socialentrepreneurship programme tohelp start up enterprises accessbusiness support, and OrtusSupport for agriculturalbusinessesA range of organisationsprovide advice and supportfor agricultural businessesdiversifying into new businessareas or expanding theirfarming activitiesThe Rural DevelopmentProgramme — managed by theDepartment of Agriculture andRural Development (DARD) —can help agricultural businessesconsider future options includingdiversification.The College of Agriculture,Food and Rural Enterprise(CAFRE) runs a course forfarmers thinking of startinga new on-farm business. Thecourse helps participatingbusinesses develop theirbusiness idea and draw up abusiness plan.The wide range of businesssupportprogrammes run byInvest NI can also be of benefitto agricultural businesses.Next steps● For more information aboutthe Rural DevelopmentProgramme contact0845 3044 509; www.rdpni.info● Contact CAFRE:0800 028 4291;www.cafre.ac.uk● More help and advice isavailable from the Rural NIwebsite. Contactwww.ruralni.gov.uk/diversificationHelp with exportingThere is a range of help if youare planning to export productsor servicesInvest NI’s Annual Scheduleof Overseas Trade Visit andExhibitions offer targetedsupport for first-time exporters,as well as helping existingexporters to expand theiroverseas markets. Invest NI canalso help you access the supportservices offered by UK Trade &Investment, the Government’sexport agency.Next steps● Visit www.nibusinessinfo.co.uk/internationaltrade● Assess your export readiness:visit www.nibusinessinfo.co.uk/exportreadiness● Invest NI can provide furtheradvice on exporting. Contact0800 181 4422;www.investni.com/index/The No-Nonsense Guide

Government advice andsupport for your businessYou also need business adviceThis guide covers regulations.You should also read a guide togeneral business advice — frommarket research to writing abusiness plandelivers the Social FranchisingProgramme.Affordable loans and advice onhow to finance your business areavailable through organisationslike the Ulster CommunityInvestment Trust, the CharityBank and the Lloyds TSBfoundation for Northern Ireland.Many of Northern Ireland'slocal councils provide supportfor social enterprises throughbespoke training and fundinginitiatives. Training, adviceand support are also availablethrough organisations such asthe Social Economy Network,UnLtd, the School for SocialEntrepreneurship, the NorthernIreland Council for VoluntaryAction (NICVA) and theCommunity Action Network.Next steps● Contact Charity Bank:www.charitybank.org● Contact Lloyds TSBFoundation for NorthernIreland: 028 9032 3000;www.lloydstsbfoundationni.org● Contact Ulster CommunityInvestment Trust: 028 90315003; www.ucitltd.com● Contact UnLtd: 028 90244007; www.unltd.org.uk● Contact the Social EconomyNetwork: 028 9077 0502;www.detini.gov.uk/deti-socialeco-index.htm● Contact the School forSocial Entrepreneurship:028 9032 8918;www.sse.org.uk● Contact NICVA:028 9087 7777;www.nicva.org● To find your local councilcontact details, go towww.direct.gov.uk and usethe contacts directory95selling.htm● For more information from UKTrade & Investment, contact020 7215 8000;www.uktradeinvest.gov.uk● To find your localcouncil contact details, go towww.direct.gov.uk and use thecontacts directoryHelp from yourcouncilLocal councils also providesupport for people setting upin business, and for peoplewanting to expand theirbusinessHelp from your district councilincludes support from theirEconomic DevelopmentDepartments and adviceon environmental healthregulations.Next stepsThe No-Nonsense Guide

Useful contacts96Where to go nowInvest Northern Ireland and itsenterprise partners are here toencourage and support peoplelike you to start a business andmake it successful.There is a wide range of helpwe can give you at every stageof the process, so get in touch.Our specially trained businessadvisers know and understandthe issues facing small andgrowing businesses. They cangive you the hands-on advice andpractical information you need tostart and run your business.You can speak to a businessadviser to learn more about therange of support on offer.Call the Go for it helpline on0800 027 0639.You should also check ourwebsites for details of changesto the regulations in this guide.Invest NorthernIrelandBedford SquareBedford StreetBelfast BT2 7ESContact 028 9069 8000;www.investni.com;www.nibusinessinfo.co.uk;email info@investni.comInvest NI regionalofficesWestern regional officeKevlin Buildings47 Kevlin AvenueOmagh BT78 1ERContact 028 8224 5763;wo@investni.comThe INTEC Centre36 East Bridge StreetEnniskillen BT74 7BTContact 028 6634 3942;wo@investni.comSouthern regional officeDrumalane Mill, The Quays,Newry BT35 8QSContact 028 3026 2955;so@investni.comOracle Conference CentreSouthern Regional College36 Lurgan RoadPortadown BT63 5BLContact 028 3839 0140;so@investni.comNorth-eastern regional officeThomas House,32E Thomas StreetBallymena BT43 6AXContact 028 2564 9215;neo@investni.comNorth-western regional officeFifth Floor, Timber Quay100-114 Strand Road,LondonderryCo Londonderry, BT48 7NRContact 028 7126 7257;nwo@investni.comMain business supportorganisationsEnterprise Northern Ireland: whorepresent the network of LocalEnterprise Agencies accrossNorthern Ireland. Contact 0287776 3555; www.enterpriseni.comNorthern Ireland Chamber ofCommerce:Contact 028 9024 4113;www.northernirelandchamber.comThe Prince’s Trust NI: adviceand financial support fordisadvantaged young peoplelooking to start a business.Contact 028 9074 5454;www.princes-trust.org.ukAdvantage NI: information,advice and support forentrepreneurs aged under 30.Contact 028 9335 6730;www.advantage-ni.comForming a businessCompanies House: to form alimited company.Contact 0303 1234 500;www.companieshouse.gov.ukIntellectual Property Office: tocheck for registered trademarksthat conflict with your businessname.Contact 0300 300 2000;www.ipo.gov.ukThe No-Nonsense Guide

Useful contactsNow you have reached the end of this guide, you should be wellon the way to understanding the main rules and regulationsthat will affect you when setting up in business. If you need anyfurther information or advice, don’t worry — help is at handYou can get free help and advice from a wide range oforganisations, including those listed on these pages. In-depthdetails of free publications can be found in the Next stepssections throughout the guidePaying tax as a selfemployedpersonHM Revenue & Customs NewlySelf-Employed Helpline: toregister as self-employed ifyou’re going into business asa sole trader or partnership.Contact 0845 915 4515;www.hmrc.gov.uk/selfemployedHM Revenue & Customs SelfAssessment Orderline: forms,leaflets and factsheets on selfassessment.Contact0845 900 0404Paying employees’tax and NationalInsuranceHM Revenue & Customs NewEmployer Helpline: to registerand receive a New EmployerPack.Contact 0845 60 70 143;www.hmrc.gov.uk/payeHM Revenue & CustomsEmployer Helpline: advice onpaying employees’ tax andNational Insurance. Contact08457 143 143;www.hmrc.gov.uk/payeHM Revenue & CustomsEmployer Orderline: forms andguides on paying employees’ taxand National Insurance.Contact 08457 646 646;www.hmrc.gov.uk/payeVATHM Revenue & Customs: toregister for VAT and for adviceand forms. Contact0845 010 9000;www.hmrc.gov.uk/vatBusiness premisesThe Planning Service:information on planningpermission. Contact028 9041 6700;www.planningni.gov.ukRoyal Institution of CharteredSurveyors (RICS): advice onland, property, construction andassociated environmental issues.Contact 028 9032 2877;www.rics.org/uk;email ricsni@rics.orgLand & Property Services:information on business rates.Contact 101 or 028 9151 3101;www.lpsni.gov.ukHealth and safetyHealth and Safety Executive forNorthern Ireland: information onhealth and safety rules. Contact0800 0320 121; www.hseni.gov.ukHSE Books: free and paid forpublications on health and safetymatters. Contact 01787 881165;www.hsebooks.co.ukProtecting theenvironmentNorthern Ireland EnvironmentAgency: information oncomplying with environmentalrules. Contact 0845 302 0008;www.doeni.gov.uk/nieaDepartment of Agriculture andRural Development (DARD).Contact 028 9052 4999;www.dardni.gov.ukDriver & Vehicle Agency (DVA):information on carriage ofdangerous goods and roadhaulage regulations. Contact0845 402 4000;www.dvani.gov.ukPatents, trade marks,copyright anddesign rightIntellectual Property Office: forhelp in protecting your ownideas and checking you arenot infringing anyone else’sintellectual property rights.Contact 0300 300 2000;www.ipo.gov.ukEuropean Patent Office: to applyfor patents in up to 20 Europeancountries. Visit www.epo.org97The No-Nonsense Guide

98Trading standardsand paymentTrading Standards Service:information about consumerprotectionand other tradingregulations. Contact0300 123 6262;www.detini.gov.uk/deti-consumer-indexOffice of Fair Trading: to applyfor a consumer credit licence.Contact 08457 224499;www.oft.gov.uk; emailenquiries@oft.gsi.gov.ukBetter Payment Practice Group:advice on getting paid on time.Visit www.payontime.co.ukEmployment rulesDepartment for Employment andLearning: extensive informationon employment rules andregulations. Visitwww.delni.gov.uk/erbookletsLabour Relations Agency (LRA):information and publications onemployment issues. Contact028 9032 1442; www.lra.org.ukUK Border Agency: how to checksomeone is entitled to work inthe UK. Contact 0300 123 4699;www.ukba.homeoffice.gov.ukIndustrial and Fair EmploymentTribunals: details of what to do ifyou’re taken to a tribunal.Contact 028 9032 7666;www.employmenttribunalsni.co.ukDepartment for Employmentand Learning (DEL): infomationabout the Bridge to Employmentscheme. Contact028 9090 5251;www.delni.gov.uk/bridge-toemploymentCollege of Agriculture, Foodand Rural Enterprise (CAFRE):courses for agriculturalbusinesses, including farmersstarting new on-farm enterprises.Contact 0800 028 4291;www.cafre.ac.ukPension adviceThe Pensions Regulator:stakeholder pension information.Contact 0870 606 3636;www.thepensionsregulator.gov.ukIT and e-commerceFederation Against SoftwareTheft (FAST): information onsoftware piracy and licensing.Contact 0845 5218630;www.fastiis.orgBusiness Software Alliance:advice on software piracy andlicensing. Contact020 7340 6080; www.bsa.org/ukData protectionInformation Commissioner:guidance on data protection.Contact 0303 123 1113;www.ico.gov.ukEqual opportunitiesand discriminationEquality Commission: guidanceon equality legislation.Contact 028 9089 0890;www.equalityni.orgTraininglearndirect Business: provides arange of courses and businesstraining.Contact 0800 101 901;www.learndirect-business.co.ukDevelopment financeEnterprise Finance Guarantee:Government schemeguaranteeing 75 per cent ofloans between £1,000 and£1,000,000. Visitwww.bsi.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprisefinance-guaranteeInterTradeIreland EquityNetwork: help and advice forbusinesses seeking equityfinance. Contact 028 3083 4100;www.intertradeireland.comBritish Private Equity andThe No-Nonsense Guide

Useful contactsVenture Capital Association.Contact 020 7420 1800;www.bvca.co.ukContact 028 9023 1614;www.lawsoc-ni.orgbusiness. Contact028 9025 2085;www.delni.gov.uk/das99Irish Venture Capital Association.Contact 00 353 1 276 4647;www.ivca.ieInsuranceFinance andaccounting adviceBritish Insurance Brokers’Association. Contact0870 950 1790; www.biba.org.ukFinance & Leasing Association:find out more about businessasset finance. Contact020 7836 6511; www.fla.org.ukAsset Based Finance Association:information on factoring andasset based lending and detailsof member firms. Contact020 8332 9955; www.abfa.org.ukChartered Accountants Ireland:to find a chartered accountant.Contact 028 9043 5840;www.charteredaccountants.ieAssociation of CharteredCertified Accountants: to find achartered accountant. Contact020 7059 5000;www.accaglobal.comThe Chartered Institute ofManagement Accountants.Contact 020 8849 2251;www.cimaglobal.comOther organisationsUK Trade & Investment: guidancefor companies that intend to orare already exporting. Contact020 7215 8000;www.ukti.gov.ukTrade associations: search for atrade association in your sector.Visit www.taforum.orgFederation of Small Businesses.Contact 028 9032 2035;www.fsb.org.ukInstitute of Directors. Contact028 9023 2880; www.iod.comInvestors in People. Contact028 9090 5338;www.investorsinpeople.co.ukCouncils and local authorities. Tofind your local council, visitwww.direct.gov.ukLegal helpLaw Society for Northern Ireland.Disablement Advisory Service:practical support includingfunding for people withdisabilities when setting up aPart-funded by the EuropeanRegional Development FundThe No-Nonsense Guide

Bedford SquareBedford StreetBelfast BT2 7EST: 028 9069 8000F: 028 9043 6536W: www.investni.com