According to a recent survey*, keeping up with increasing volumes of red tape is one of the major day-to-day concerns for owners and managers of UK small businesses.
With cost of compliance, threats of legal action, increased administration and difficulty in understanding the requirements of certain legislation causing big headaches, David Robertson, chief executive of specialist cash flow provider Bibby Financial Services, provides a heads-up on forthcoming legislation and shares his advice on coping with it.
David Robertson comments: ìSince the Government simplified changes in legislation for business by limiting the introduction of new regulations to April and October, it has become easier to keep tabs on what is happening on the legislative landscape and to ensure compliance. However, businesses must still think long-term to ensure they keep within the law and take the necessary steps to implement any changes well before the deadlines to avoid the risk of prosecution and penalty.î
According to Robertson, there are three key pieces of legislation coming into effect in 2008 that business owners and managers need to watch out for.
In April 2008, the Information and Consultation of Employees Regulations 2004 will be extended to cover businesses with 50 or more employees. The Regulations, which implement the Information and Consultation Directive in Great Britain**, give employees the right to information and consultation about the business in which they work, its prospects and the circumstances affecting their employment. This extension will impact many of the UKís medium-sized employers who will have to be more open with employees about the way they run their businesses.
April will also see the next phase of the Consumer Credit Act 2006***, including a new licensing regime, provisions for transparency in credit transactions and the introduction of the Consumer Credit Appeals Tribunal to give better protection for consumers dealing with businesses on credit terms. This will mean that businesses which operate any type of consumer credit scheme will have to revamp their paperwork in line with the new Act.
Later in the year, the Government will push through the next phase of its proposals to increase workersí statutory holiday entitlement from 20 days to 28 days****. Statutory entitlement has already been increased from 20 to 24 days on 1 October 2007 and will be increased again on 1 October 2008. This has been lobbied for by trade unions, unhappy that employers are not legally required to give workers time off for Bank holidays.
David Robertson concludes: ìMaking sure your business doesnít get caught out should be top of the agenda in the New Year and business owners who are unsure of how the new legislation will impact them should seek advice on what they should be doing as soon as possible.
ìKeeping your business in tip-top shape also requires taking a close look at your finances and ensuring you have a healthy cash flow for the coming year. This means taking advantage of new opportunities as they arise during the year, but also covering yourself for all eventualities.î
* The research was undertaken in October 2007 by Bibby Financial Services. A national sample of 301 small business owners and managers were surveyed. The finding is also supported by FSB Employment Survey, August 2006 where 2826 responses were obtained from FSB members.
** The Regulations can be viewed in full on Her Majestyís Stationery Office (HMSO) website - www.opsi.gov.uk
*** Information on the Consumer Credit Act 2006 is available from the Office of Fair Trading (OFT) website - www.oft.gov.uk
**** Full details available at - http://www.berr.gov.uk/
Keeping one step ahead of business red tape
According to a recent survey, keeping up with increasing volumes of red tape is one of the major day-to-day concerns for owners and managers of UK small businesses
