Business Laws
Toolkit Contents
Home | Financial Business Planning | Finance Business Records | Business Development | Help with Business Debt
Reasons to have a business plan
Business Plan Scope
Create a Business Plan
The Prince's Trust Business Plan Template
Business Plan Template
Taking PAYE salary
Taking Director Dividends
Pension Contributions
Reason for a Business Bank Account
Types of Business Bank Account
Open a Business Bank Account
Signing Instructions
Business Bank Charges
10 popular freebies
Free Software
Free Business Resources
Why do I need Business Insurance?
Types of Business Insurance
How do I get Business Insurance?
Invalid Claims
Payment Obligations & Recovery
Making prompt payments
The Prompt Payment Code
Receiving prompt payments
What must business invoices include?
Payment terms
Claim debt recovery costs
Recovery of debt owed to your business
Benefits of Financial Software
Cost of Financial Software
GOV UK Tested Accountancy Software
Types of Business Risk
Create a Business Risk Register
Maintain your Risk Register
Importance of business contingency
Start a contingency fund
Calculate operational expenses
Importance of Business Laws
Types of Business Formation
Laws & Regulations
Helpful Governance Agencies
> Self-employed records
> Companies registered with Companies House
> Inspection of records
> Digital Receipts
> Making Tax Digital
> Benefits of Digital Receipts
> Free Digital Records Storage
Register for online filing
What needs to be filed?
Annual Confirmation Statement
File a confirmation statement
What is corporation tax?
Completing a corporation tax return
How is corporation tax calculated?
What are dormant accounts?
File Dormant Accounts
Dormant Accounts Example
Deductible Expenses
Non Deductible Expenses
Gather Financial Records
Completing the Tax Return
What triggers a compliance check?
How are checks undertaken?
After the check
Appeal a Decision
Important: New Legislation
Cash basis accounting
Information for Cash Basis Accounts
Prepare Cash Basis Accounts
Accrual Accounting
Information for Accrual Accounts
Prepare Accrual Accounts
What are Actuals?
Information for Actuals
Calculate Actuals
Check for Differences
What is a balance sheet?
Create a balance sheet
What is bank reconciliation?
Information for a bank Reconciliation
Perform a bank reconciliation
Check for Differences
Create a Cash Flow Forecast
Types of business expenses
Detailed expenses
Types of business income
British Bank Free Template
What is a fixed asset register?
Create a Fixed Asset Register
About Depreciation
Calculate depreciation
What is petty cash?
Start a petty cash fund
Check a petty cash difference
What is a profit & loss statement?
Create a profit & loss statement
A to Z Glossary of Accounting Terms
Tidy up your accounts
Order your expenses & receipts
Untidy accounts - penalties
Set up a spreadsheet
Spreadsheet Formulas
Available Small Business Grants
How to apply for a Grant
Importance of marketing & advertising
Types of marketing & advertising
Advertising laws
Why is market research important?
Market research methods
Evaluate market research data
Tips to start advertising online
Search Engine Optimisation
Pay-per-click
Free Websites
Free advertising options
Set up Google My Business
Word of mouth
Social Media Strategy
Set up a Facebook campaign
Set up an Instagram campaign
Set up a Linkedin campaign
Set up a TikTok campaign
Set up a Twitter campaign
Benefits of networking
Where to & how to network
How to write a 30 second pitch
Benefits of video networking
How to join a Google Meet
How to join a Microsoft Teams meeting
How to join a Zoom meeting
New Business - 10 Top Tips
Existing Business - 10 Top Tips
Research your business idea
Study the competition
What is financial distress?
Where to spot signs of financial distress
Typical signs of financial distress
Insolvent Distress
Cash Flow Test
Balance Sheet Test
Legal Action Test
Types of Business Debt Liability
Personal Guarantees
Wrongful Trading
Insolvent Trading
Fraudulent Trading
Statute Barred Debt
Challenge a Statute Barred Business Debt
Breathing Space rules for Business
Individual debt solutions
What is a statutory demand?
Statutory Demand Process
Challenge a Statutory Demand
What is a bounce back loan?
Options for Bounce Back Loan Debt
Coronavirus Business Interruption Loan
What is a Business Interruption Loan
Options for CBIL Debt
Time to pay agreements
HMRC Recovery Powers
Reasonable excuses
How to appeal
VAT late filing penalties
Late interest payments
Consequences of non-payment
Options for VAT debt
What is company administration?
When is it a good option?
Administration Process
Types of debt reorganisation
Advantages of debt restructuring
Disadvantages of debt restructuring
What is a CVA?
Is a CVA a good option?
Setting up a CVA
Potential problems & risks with a CVA
CVA Costs
Types of investors
Advantages of investors
Social investors
Disadvantages of investors
What are mergers & acquisitions?
Mergers & acquisitions process
Types of mergers & acquisitions
Advantages of mergers & acquisitions
Disadvantages of mergers & acquisitions
Universal Credit - Business Owners
Guide to universal credit
Minimum income floor
How to start a claim
What is dissolution?
Dissolution process
What is strike off?
When is strike off not allowed?
Strike off process
What is liquidation?
Is liquidation the best option?
Compulsory liquidation
Liquidation Fees
Contents
Importance of Business Laws
Types of Business Formation
Laws & Regulations
Helpful Governance Agencies
Your business need to adhere to a number of laws. It's important to understand what these are, your responsibilities and the consequences if you do not follow them. Understanding business laws is important for the success and stability of your business, as well as for the protection of all parties involved in business transactions.
If you have a business adviser, they should provide expertise about which laws are applicable to you. Without a business adviser, you will need to do your own research. Some business banks also provide useful information packs and advice. In addition, you may find out very quickly what you do not have in place by applying for borrowing and/or tendering for contracts as suppliers and lenders will make due diligence checks.
Importance of Business Laws
Understanding business laws is important for a number of reasons:
Legal compliance: Knowing and complying with business laws helps ensure that your business operates within the bounds of the law and protects you from potential legal issues and fines.
Protection of interests: Business laws help protect the interests of both the business and its stakeholders, such as employees, customers, suppliers, and shareholders.
Creating a level playing field: Business laws promote fairness and competition by establishing clear rules for all businesses to follow.
Attracting investment: A well-defined and stable legal framework for business can increase investor confidence and attract more investment to a country.
Protecting consumers: Business laws in the UK help protect consumers by setting standards for the quality and safety of goods and services, and by providing a mechanism for consumers to seek redress if they have been treated unfairly.
Types of Business Formation
There are several forms of business formations that you can choose from, each with its own set of characteristics and requirements. Some of the most common forms of business formations in the UK are:
Sole trader: This is the simplest form of business, where a single individual is responsible for running the business and is personally responsible for all its debts and obligations.
Partnership: A partnership is formed between two or more individuals who own and run the business together. The partners are jointly and severally liable for the debts and obligations of the business.
Limited liability partnership (LLP): An LLP is similar to a partnership but with the added benefit of limited liability protection for its partners. This means that the partners are not personally responsible for the debts of the business beyond their agreed contribution.
Private limited company (Ltd): A private limited company is a separate legal entity from its owners and directors. The owners, also known as shareholders, have limited liability and the company is responsible for its own debts and obligations.
Public limited company (Plc): A public limited company is similar to a private limited company but can offer shares to
Laws & Regulations
As a small business owner, there are several laws and regulations that you must follow, including:
Health and Safety: You are responsible for ensuring the health and safety of your employees and anyone who visits your workplace. This includes conducting regular risk assessments and providing a safe working environment.
Data protection: If you handle personal data, you must comply with the General Data Protection Regulation (GDPR) and the Data Protection Act 2018. This includes ensuring that personal data is processed securely and only used for lawful purposes.
Employment law: You must comply with UK employment law, which covers areas such as minimum wage, working hours, and discrimination in the workplace.
Taxation: You are responsible for registering for and paying the correct taxes, including corporation tax, income tax, and Value Added Tax (VAT).
Consumer protection: If you sell goods or services to consumers, you must comply with consumer protection laws, such as the Consumer Rights Act 2015, which sets out the rights and responsibilities of businesses and consumers.
Environmental protection: You must comply with environmental protection laws, such as the Environmental Protection Act 1990, which sets out the legal requirements for businesses to reduce their environmental impact.
Licensing and permits: Depending on your business activities, you may need to apply for licenses or permits, such as a food hygiene certificate if you run a food-based business.
Governance (for Limited Companies): If you run a limited company, you are bound by the Companies Act 2006.
Financial regulation: If your company sells or provides financial products and/or services, it may need to be authorised by the Financial Conduct Authority.
It's important to stay up-to-date with the latest laws and regulations that apply to your business, and to seek professional advice if you are unsure about your obligations. Failing to comply with the laws and regulations can result in fines, legal action, and damage to your reputation.
Helpful Governance Agencies
Companies House - the government agency responsible for registering and regulating companies in the UK.
The Information Commissioner's Office (ICO) - responsible for upholding information rights and protecting personal data.
HM Revenue and Customs (HMRC) - the government agency responsible for collecting taxes and enforcing tax laws in the UK.
The Health and Safety Executive (HSE) - the government agency responsible for enforcing health and safety regulations in the UK.
The Pensions Regulator - the government agency responsible for regulating workplace pension schemes in the UK.
The Environment Agency - the government agency responsible for protecting and improving the environment in England and Wales.
The Competition and Markets Authority (CMA) - the government agency responsible for promoting competition and protecting consumers in the UK.
The Financial Conduct Authority (FCA) - the regulatory body responsible for overseeing financial markets and firms in the UK.
The Intellectual Property Office (IPO) - the government agency responsible for granting and enforcing patents, trademarks, and designs in the UK.
The Insolvency Service - the government agency responsible for overseeing the administration of insolvent companies in the UK.
These agencies play an important role in ensuring that small businesses in the are operating within the law and meeting their obligations to employees, customers, and the wider community. They can provide support, guidance, and enforcement action as needed to ensure that small businesses are able to operate effectively and responsibly.