Remove small enterprises from the Employment Act




The single most difficult obstacle to growing a successful business in the UK is Employment Law designed for the likes of British Aerospace being imposed on small and even one man band enterprises.

 




Unemployment could be drastically reduced if this was removed completely for small enterprises and introduced in sensible stages up to the large corporations it was designed for.

 

See reasons below-

Why is this idea important?




The single most difficult obstacle to growing a successful business in the UK is Employment Law designed for the likes of British Aerospace being imposed on small and even one man band enterprises.

 




Unemployment could be drastically reduced if this was removed completely for small enterprises and introduced in sensible stages up to the large corporations it was designed for.

 

See reasons below-

Law of Distraint should be amended.

 

 

The law of Distraint in commercial properties allows the landlord to send in bailiffs to remove assets of the company without any prior notice to the tenant.  No court order or notification is needed and all costs are passed onto the tenants.  This law effectively ensures that the landlord can immediately close down a trading enterprise for any amount of arrears and at any time.  This is fine when a tenant is deliberately trying to withhold rent from the landlord but in cases where companies are genuinely suffering as is happening in the current climate and are trying to keep their companies alive, this law basically allows landlords to harass tenants into borrowing from family, selling personal assets and other methods to keep their companies alive.

 

The law should be amended so that landlords have to give due warning before sending in bailiffs and also tenants should be given time to pay back arrears without damaging the company or their personal assets.

Why is this idea important?

 

 

The law of Distraint in commercial properties allows the landlord to send in bailiffs to remove assets of the company without any prior notice to the tenant.  No court order or notification is needed and all costs are passed onto the tenants.  This law effectively ensures that the landlord can immediately close down a trading enterprise for any amount of arrears and at any time.  This is fine when a tenant is deliberately trying to withhold rent from the landlord but in cases where companies are genuinely suffering as is happening in the current climate and are trying to keep their companies alive, this law basically allows landlords to harass tenants into borrowing from family, selling personal assets and other methods to keep their companies alive.

 

The law should be amended so that landlords have to give due warning before sending in bailiffs and also tenants should be given time to pay back arrears without damaging the company or their personal assets.

Reform the National Minimum Wage to allow profit-share enterprises

Simply that the burden of paying the National Minimum Wage should be lifted from enterprises where the Employee or Worker has a share in any profits or gross earnings of that enterprise.

Why is this idea important?

Simply that the burden of paying the National Minimum Wage should be lifted from enterprises where the Employee or Worker has a share in any profits or gross earnings of that enterprise.

Health and Safety Hazardous Substances

Small busineses have to maintain a register of so called hazardous substances on their premises. The only hazardous substances on most small business registers are cleaning materials, purchased from supermarkets found in every home in the country. Requiring a register for these is plain daft. My register has on it

Cillit Bang

Toilet cleaner

and suchlike. It's time to get rid of this stupidity and treat adults like adults. 

Why is this idea important?

Small busineses have to maintain a register of so called hazardous substances on their premises. The only hazardous substances on most small business registers are cleaning materials, purchased from supermarkets found in every home in the country. Requiring a register for these is plain daft. My register has on it

Cillit Bang

Toilet cleaner

and suchlike. It's time to get rid of this stupidity and treat adults like adults. 

Health and Safety Hazardous Substances

Small busineses have to maintain a register of so called hazardous substances on their premises. The only hazardous substances on most small business registers are cleaning materials, purchased from supermarkets found in every home in the country. Requiring a register for these is plain daft. My register has on it

Cillit Bang

Toilet cleaner

and suchlike. It's time to get rid of this stupidity and treat adults like adults. 

Why is this idea important?

Small busineses have to maintain a register of so called hazardous substances on their premises. The only hazardous substances on most small business registers are cleaning materials, purchased from supermarkets found in every home in the country. Requiring a register for these is plain daft. My register has on it

Cillit Bang

Toilet cleaner

and suchlike. It's time to get rid of this stupidity and treat adults like adults. 

Magistrates to license pubs not councils

As the last government did nothing to help Pubs and there is no glimmer of this one doing anything could we please revert back to the Magistrates Courts for licence extensions. We use to be able to go to court and get a licence for the next day but since it was Blairised we now have to give 10 working days notice which means we loose even more business. I note that licenses have just been issued to some pouns shops to sell beer and wine for 1.00 a pint, thats going to be helpful to pubs and all the associated crime that goes with cheap alcohol
 

Why is this idea important?

As the last government did nothing to help Pubs and there is no glimmer of this one doing anything could we please revert back to the Magistrates Courts for licence extensions. We use to be able to go to court and get a licence for the next day but since it was Blairised we now have to give 10 working days notice which means we loose even more business. I note that licenses have just been issued to some pouns shops to sell beer and wine for 1.00 a pint, thats going to be helpful to pubs and all the associated crime that goes with cheap alcohol
 

Stop costly duplication of CRB checks

My wife has a small business teaching music to 'early years children.  As a contractor to different employers and working in different venues, she has to get multiple CRB checks, and each comes from a different "provider".  These cost around £70 each – it varies – and take a lot of time and effort to complete.  They make getting back to work after a period of illness almost prohibitively expensive.  What a waste!

Why is there not one provider?  The ISA was being set up to do that, were stopped. Why? Perhaps some "providers" will lose business?

Why is this idea important?

My wife has a small business teaching music to 'early years children.  As a contractor to different employers and working in different venues, she has to get multiple CRB checks, and each comes from a different "provider".  These cost around £70 each – it varies – and take a lot of time and effort to complete.  They make getting back to work after a period of illness almost prohibitively expensive.  What a waste!

Why is there not one provider?  The ISA was being set up to do that, were stopped. Why? Perhaps some "providers" will lose business?

Legalise building and selling computers

While the physical act of building a custom computer for a customer is not illegial, there are other laws which make it virtually impossible to build & sell a computer to a customer without it being illegial (Epecially for small shops).

CE Marking:

Most people don't know this, but companies that build custom spec computer systems are braking the law unless they spend around £500 – £1000 for CE compliance for each "variant" of the system. In I.T., there are thousands of "variants" (e.g. size of RAM, made of hard drive, style of case)

I am asking the government to remove the CE testing, marking and documentation keeping for the companies that assemble or upgrade computers.

WEEE Waste Regulations:

Currently, even if you build a single custom PC for a customer, you are classed as a "producer" and have to sign up to a "weee producer compliance scheme". Given that the cost of this is around £600/year, this is outrageous!

Why is this idea important?

While the physical act of building a custom computer for a customer is not illegial, there are other laws which make it virtually impossible to build & sell a computer to a customer without it being illegial (Epecially for small shops).

CE Marking:

Most people don't know this, but companies that build custom spec computer systems are braking the law unless they spend around £500 – £1000 for CE compliance for each "variant" of the system. In I.T., there are thousands of "variants" (e.g. size of RAM, made of hard drive, style of case)

I am asking the government to remove the CE testing, marking and documentation keeping for the companies that assemble or upgrade computers.

WEEE Waste Regulations:

Currently, even if you build a single custom PC for a customer, you are classed as a "producer" and have to sign up to a "weee producer compliance scheme". Given that the cost of this is around £600/year, this is outrageous!

Charging of Statutory Interest for Late Payment to be mandatory.

Many small businesses are affected by poor payers, so much so that it has was tagged a new 'British Disease' in the 90's.  The Late Payment Act 'pill' intended to cure this disease has not worked (late payment of commercial debts (interest) act 1998).

This is a cultural problem brought about by (at least) indifference, or (at worse) corporate bullying or criminality.  

Small business needs support in backing up their rights to Statutory Interest on the debt.

By making it mandatory to pay Statutory Interest after a short interest-free opportunity has passed, this would establish punctual payment as the norm, as it is in many other countries.     

Why is this idea important?

Many small businesses are affected by poor payers, so much so that it has was tagged a new 'British Disease' in the 90's.  The Late Payment Act 'pill' intended to cure this disease has not worked (late payment of commercial debts (interest) act 1998).

This is a cultural problem brought about by (at least) indifference, or (at worse) corporate bullying or criminality.  

Small business needs support in backing up their rights to Statutory Interest on the debt.

By making it mandatory to pay Statutory Interest after a short interest-free opportunity has passed, this would establish punctual payment as the norm, as it is in many other countries.     

reduce paperwork in risk assessments

Currently voluntary organisations, churches and small businesses are required to spend much time and energy on producing written risk assessments for every activity they undertake.

My suggestion is to reduce the workload for every organisation which has say below 10 FTE paid staff who would not be required to do anything more than:

1. show that they had adequate public and staff liability insurance cover for their activities.

2. show on inspection  that any building or equipment they owned was in compliance with fire regulations and other H&S law to the extent that staff and public were not exposed to serious risk (against a check list of say the 50 most common types of accident resulting in personal injury and the 20 most serious types of incident likely to result in multiple fatalities)

3. never to instruct or ask staff or public to carry out any task which was evidently risky, or which they might be reluctant to do because the risk was greater than they might encounter in everyday domestic life.

Why is this idea important?

Currently voluntary organisations, churches and small businesses are required to spend much time and energy on producing written risk assessments for every activity they undertake.

My suggestion is to reduce the workload for every organisation which has say below 10 FTE paid staff who would not be required to do anything more than:

1. show that they had adequate public and staff liability insurance cover for their activities.

2. show on inspection  that any building or equipment they owned was in compliance with fire regulations and other H&S law to the extent that staff and public were not exposed to serious risk (against a check list of say the 50 most common types of accident resulting in personal injury and the 20 most serious types of incident likely to result in multiple fatalities)

3. never to instruct or ask staff or public to carry out any task which was evidently risky, or which they might be reluctant to do because the risk was greater than they might encounter in everyday domestic life.

One charge for importing and exemption for small start up businesses

If you are trying to provide a new product/service for a niche market, where individual customisation is what makes your product unique, your delivery costs can end up making the whole project unprofitable.   I have delivery costs coming out as more than 3 times higher than production costs because of the money the government wants to make on it all.

To bring in items that you have designed and marketed, but ordered the production of custom made from abroad, you have to pay the cost of

a) shipping individual items

b) VAT

c) customs duty on value PLUS shipping cost

d) clearance costs.  

I accept that shipping costs have to be paid (though I'm sure the reason why shipping costs are so high is because of government levies on shipping).

But VAT kicks in if the goods cost more than £18 – that threshold is far too low.

And duty ends up being charged even on low cost items once you regularly bring items in.  The threshold is £135, but if you bring in several things that are below this cost over a period of time, as any business would, you end up billed for duty on all of them, so the threshold means nothing for small businesses.  Not only that but they also charge you duty on the shipping costs!  

And clearance costs??  Is that just another way for the government to charge you even more for inspecting goods to decide how much they are going to tax you?

Let's do away with all these costs, we should have one single charge for importing an item that replaces VAT, duty and clearance.  Then it will be more evident about how much is reasonable depending on the value of the item.  There should be exemptions for small businesses with small volumes (it takes time to build up a decent size customer base).  And it should be made so that the businesses that can afford to pay (huge multinationals), subsidise small businesses.

Why is this idea important?

If you are trying to provide a new product/service for a niche market, where individual customisation is what makes your product unique, your delivery costs can end up making the whole project unprofitable.   I have delivery costs coming out as more than 3 times higher than production costs because of the money the government wants to make on it all.

To bring in items that you have designed and marketed, but ordered the production of custom made from abroad, you have to pay the cost of

a) shipping individual items

b) VAT

c) customs duty on value PLUS shipping cost

d) clearance costs.  

I accept that shipping costs have to be paid (though I'm sure the reason why shipping costs are so high is because of government levies on shipping).

But VAT kicks in if the goods cost more than £18 – that threshold is far too low.

And duty ends up being charged even on low cost items once you regularly bring items in.  The threshold is £135, but if you bring in several things that are below this cost over a period of time, as any business would, you end up billed for duty on all of them, so the threshold means nothing for small businesses.  Not only that but they also charge you duty on the shipping costs!  

And clearance costs??  Is that just another way for the government to charge you even more for inspecting goods to decide how much they are going to tax you?

Let's do away with all these costs, we should have one single charge for importing an item that replaces VAT, duty and clearance.  Then it will be more evident about how much is reasonable depending on the value of the item.  There should be exemptions for small businesses with small volumes (it takes time to build up a decent size customer base).  And it should be made so that the businesses that can afford to pay (huge multinationals), subsidise small businesses.

Selling home-made goods without a license (or excise duty)

There are good reasons to license the sale of  food because of food hygeine. But you should also be allowed to sell food and other produce without a license, as long as it's clearly marked as unlicensed. (There could be exceptions e.g. meat products)

Examples of things to be sold without a license include:

Home made beer – this is actually a very safe product because it tastes awful if it's contaminated.

Cakes and biscuits sold at village fetes and that sort of thing.

Manufactured craft products such as jewellery – could be dangerous but it's up to the buyer to decide whether its safe. 

All the above should also be exempt from excise duty of course because they are small-scale and therefore not worth the bother.

Why is this idea important?

There are good reasons to license the sale of  food because of food hygeine. But you should also be allowed to sell food and other produce without a license, as long as it's clearly marked as unlicensed. (There could be exceptions e.g. meat products)

Examples of things to be sold without a license include:

Home made beer – this is actually a very safe product because it tastes awful if it's contaminated.

Cakes and biscuits sold at village fetes and that sort of thing.

Manufactured craft products such as jewellery – could be dangerous but it's up to the buyer to decide whether its safe. 

All the above should also be exempt from excise duty of course because they are small-scale and therefore not worth the bother.

Stop pedestrianisation mania

The proliferation of ridiculous 'town planning' ventures, which see huge amounts of expensive paving, yellow lines & wavy lines, plant pots, & dubiously appealing plastic architectural 'improvements' crowding our pavements & roads is stopping people:

A. Reaching shops by the simple act of crossing from 1 side of the road to the other

B. Parking anywhere near said shops & being forced to buy online or go to sterile out of town malls

Consequently small shops unique in character are going to the wall in droves as nobody can access their shops!!

Why is this idea important?

The proliferation of ridiculous 'town planning' ventures, which see huge amounts of expensive paving, yellow lines & wavy lines, plant pots, & dubiously appealing plastic architectural 'improvements' crowding our pavements & roads is stopping people:

A. Reaching shops by the simple act of crossing from 1 side of the road to the other

B. Parking anywhere near said shops & being forced to buy online or go to sterile out of town malls

Consequently small shops unique in character are going to the wall in droves as nobody can access their shops!!

small business rate relief and micro companies

The rating sysyem on small industrial premises where most small business operate is disproportionate to the revenue that these companies make. Currently there are only two provisions in the system either you own a small business defines as having a turnover of, I think a million or less and large business as having a turnover exceeding this amount. How about emerging micro companies. I myself have a micro company operating making small boats for the uk market our turnover is less than £175,000. However I pay rates the same as a company doing almost 6 times the turnover. I propose that micro companies in manufacturing should get a quarterly sliding scale of rates defined from the profits made and not set down as a fixed monthly figure which sometimes is not achievable on a monthly basis to pay. I have only 2 full time workers and 2 part time. I am doing what I can take drive the business forward but realistically, a sliding scale set within the current system would ensure that the business could grow much more quickly and not have the headache of facing court enforced payments when things are slow. This would also save money on courts and other areas..  I am fairly sure no one will even read this but who knows.. Best regards Jonathan www.jrsmarine.com

Why is this idea important?

The rating sysyem on small industrial premises where most small business operate is disproportionate to the revenue that these companies make. Currently there are only two provisions in the system either you own a small business defines as having a turnover of, I think a million or less and large business as having a turnover exceeding this amount. How about emerging micro companies. I myself have a micro company operating making small boats for the uk market our turnover is less than £175,000. However I pay rates the same as a company doing almost 6 times the turnover. I propose that micro companies in manufacturing should get a quarterly sliding scale of rates defined from the profits made and not set down as a fixed monthly figure which sometimes is not achievable on a monthly basis to pay. I have only 2 full time workers and 2 part time. I am doing what I can take drive the business forward but realistically, a sliding scale set within the current system would ensure that the business could grow much more quickly and not have the headache of facing court enforced payments when things are slow. This would also save money on courts and other areas..  I am fairly sure no one will even read this but who knows.. Best regards Jonathan www.jrsmarine.com

Reduce VAT fines for small business’s

the current way of calculating late payment VAT fines is totally out of propotion to the cost of recovery – for small business, who may miss a payment by a day or so you can end up getting fined 15% of your total bill, this can lead to further harrasment and threatening letters if you cannot pay the fine, also it can take 12 months to remove yourself from their blacklist – which again is totally unfair and biased towards the HMRC

Why is this idea important?

the current way of calculating late payment VAT fines is totally out of propotion to the cost of recovery – for small business, who may miss a payment by a day or so you can end up getting fined 15% of your total bill, this can lead to further harrasment and threatening letters if you cannot pay the fine, also it can take 12 months to remove yourself from their blacklist – which again is totally unfair and biased towards the HMRC

No corporation tax return for very small companies

For VAT registered very small companies (turnover £50k) who file their VAT online (a) provide them with the option to have PCTCT (profits calculated and used for determining corporation tax) based on the previous 4 quarters VAT returns, and (b) thereby eliminate the requirement to support and file a separate corporation tax return calculation and full statutory accounts.

In addition, for very small companies electing to continue to file the existing summary corporation tax return, an ultra simplified self assessment form and half  page guidance note should be introduced. 

Allow very small companies to use their accounting period as the tax period if it ends within 3 month of the tax period (currently, if the accounting period does not coincide with the tax period then two separate tax calculations need to be prepared each year using two different accounting periods and sets of accounts — just by reading this you can start to see just how unnecessarily overcomplicated and bureacratic filing is for very small companies).

Why is this idea important?

For VAT registered very small companies (turnover £50k) who file their VAT online (a) provide them with the option to have PCTCT (profits calculated and used for determining corporation tax) based on the previous 4 quarters VAT returns, and (b) thereby eliminate the requirement to support and file a separate corporation tax return calculation and full statutory accounts.

In addition, for very small companies electing to continue to file the existing summary corporation tax return, an ultra simplified self assessment form and half  page guidance note should be introduced. 

Allow very small companies to use their accounting period as the tax period if it ends within 3 month of the tax period (currently, if the accounting period does not coincide with the tax period then two separate tax calculations need to be prepared each year using two different accounting periods and sets of accounts — just by reading this you can start to see just how unnecessarily overcomplicated and bureacratic filing is for very small companies).

Full statutory Annual Accounts should not be required for very small businesses

Remove the requirement for very small companies (turnover <£50k, taxable profit less than £50k) to prepare full annual accounts.

Why is this idea important?

Remove the requirement for very small companies (turnover <£50k, taxable profit less than £50k) to prepare full annual accounts.

Make it Law that Large companies have to settle their bills in 30 days.

Small UK companies are being strangled to death in the UK by the large companies holding back on payments.  All large companies, in the UK with turnover over 5 Million and including the public sector should  by law pay their bills on time, i.e. This should be 30 days from month end.   It is the large companies that are killing the cash flow of small business here in the UK.  Many Small businesses carry out good work, have to pay their suppliers, so they can continue to carry out good work and the big boys hold all the money.  It is killing UK Small  Businesses.  Small businesses are doing the turnover but just haven't got the ability to get the money in from the "Big Boys".  Running a small business in this country is like running a Loan company with no Interest!!

Why is this idea important?

Small UK companies are being strangled to death in the UK by the large companies holding back on payments.  All large companies, in the UK with turnover over 5 Million and including the public sector should  by law pay their bills on time, i.e. This should be 30 days from month end.   It is the large companies that are killing the cash flow of small business here in the UK.  Many Small businesses carry out good work, have to pay their suppliers, so they can continue to carry out good work and the big boys hold all the money.  It is killing UK Small  Businesses.  Small businesses are doing the turnover but just haven't got the ability to get the money in from the "Big Boys".  Running a small business in this country is like running a Loan company with no Interest!!

Abolish or amend the Distance Selling Regulations

Currently, under the Distance Selling Regulations, a buyer has the right to return an item they have bought mail order for a full refund, including the original cost of P&P.  I don't see why, as a small business, I should have to refund P&P costs at all.  I also don't think the DSRs should apply to items such as pierced jewellery, for health & hygiene reasons.

Why is this idea important?

Currently, under the Distance Selling Regulations, a buyer has the right to return an item they have bought mail order for a full refund, including the original cost of P&P.  I don't see why, as a small business, I should have to refund P&P costs at all.  I also don't think the DSRs should apply to items such as pierced jewellery, for health & hygiene reasons.

Scrap ‘tax on account’ robbery of small businesses

The current tax situation for the self-employed & small businesses, whereby they are required to pay half the coming year's tax in advance 'on account', is completely unnaccepatable & counter productive to business growth.
Imagine if employees were told they had to pay half of the next year's tax in advance in addition to their existing tax burden? There would be rioting in the streets!
It's impossible in a recession to predict the coming year's earnings & totally unrealistic for HMRC to 'assume' you will earn the same amount in the coming year.
This is daylight robbery & must be stopped. You are allowed to put in a 'lower estimate' (with yet more additional form filling) but if this estimate is wrong you are then penalised with interest!
How can this be conducive to small business confidence & growth? Businesses are living in a state of perpetual financial anxiety & this has been the last straw.
Come on Coalition….scrap this totally unfair burden & prove you have small business' interests at heart, unlike the last Labour government.

Why is this idea important?

The current tax situation for the self-employed & small businesses, whereby they are required to pay half the coming year's tax in advance 'on account', is completely unnaccepatable & counter productive to business growth.
Imagine if employees were told they had to pay half of the next year's tax in advance in addition to their existing tax burden? There would be rioting in the streets!
It's impossible in a recession to predict the coming year's earnings & totally unrealistic for HMRC to 'assume' you will earn the same amount in the coming year.
This is daylight robbery & must be stopped. You are allowed to put in a 'lower estimate' (with yet more additional form filling) but if this estimate is wrong you are then penalised with interest!
How can this be conducive to small business confidence & growth? Businesses are living in a state of perpetual financial anxiety & this has been the last straw.
Come on Coalition….scrap this totally unfair burden & prove you have small business' interests at heart, unlike the last Labour government.