Failure to comply can result in content being pulled from the platform or even a permanent ban, so the impact can be significant if you’re a small business looking to invest in social media or influencer marketing.

We’ll look at what the latest guidelines mean for you, and how you might even capitalise on them. Let’s jump in.

What are TikTok’s content guidelines?

TikTok’s policies reflect the requirements of the European Digital Services Act, which is in place for Very Large Online Platforms (VLOPs) with over 45 million monthly users in the EU.

We’ll cover the three main areas one by one, starting with the most timely.

AI-generated content

So-called “deepfakes” are facing the strongest crackdown. In short, all AI-generated content (including images, audio, and video) must be clearly labelled to avoid confusion.

Deepfakes are media generated by AI to depict someone saying or doing something they never actually did. For example, a deepfake will clone a celebrity or politician and then use this to manipulate their audience.

If your business does use AI-generated content, you must indicate this by applying the label “AI-generated content”. This not only safeguards you against compliance violations, but also builds trust with your audience.

LIVE streaming

Creators are expected to take responsibility for their content, making sure it adheres to strict advertising standards when promoting products and/or services in real-time.

For example, much like with AI-generated content, ads and sponsors must now be labelled or demarcated in some way.

There are also strict rules around what you can and can’t advertise, too. For example, you’re usually prohibited from promoting high-risk, age-restricted goods – like tobacco or adult services. Advertising alcohol also comes with strict rules that include age-gating and business authorisation.

Eligibility to go live has also become stricter, with only users aged 18 and above being allowed to do this and monetise streams.

What this means for you is extra due diligence when working with any creators or influencers, including ensuring they are 18 or older, and following TikTok’s guidelines.

Transparency and safety

The responsibilities creators have also include taking care around misinformation and trends that TikTok deems unsafe or even harmful, such as misleading health or financial advice.

Increased responsibility also means increased accountability, and as the business running the campaign, the buck ultimately stops with you. Vet potential partners, and only work with people who are eligible and demonstrate compliance.

What your marketing team needs to know

Let’s look at some numbers.

• Upwards of 30 million people in the UK now use TikTok
• Over two-thirds (67%) of UK brands run influencer marketing campaigns on the platform

As such, compliance with the new rules shouldn’t just be treated as a formality; it can actually give you a strategic advantage over your competitors, allowing you to grow your reach and ultimately expand your client base.

Finding your target audience

Running a social media page of any kind will require a time investment in order to make it worthwhile, and so you want to ensure you’re on the same platform as the people who would be interested in what you have to offer.

This is where it’s useful to consider whether or not your business even needs a TikTok account. Otherwise, you simply won’t see the results you want.

Adapting to the rules

Every business needs some kind of niche to stand out in an increasingly competitive marketplace, but simply positioning yourself as trustworthy and responsible may in fact achieve the same outcome, as many creators will be slow to adapt to these new changes.

To be on the safe side, start incorporating AI disclosure and LIVE safety requirements into marketing campaigns, briefs, and contracts for potential partners.

This will also future proof your campaigns, setting you up for long-term success.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Everything Small Businesses Need to Know About TikTok’s Guidelines appeared first on The Cheap Accountants.

You might even need to complete one if you’re employed – for example, because you get money from property which is separate to your employment income.

In this article, we’ll take a look at the different options available for sending a tax return, and also explore Making Tax Digital (MTD) Income Tax.

Filing your tax return using a paper form or online

There are different ways you can file your tax return and pay what you owe, including:

• Online
• Via paper form

Filing your tax return online is the most common method – and in some cases this is mandatory, especially with everything becoming digitalised. But in some cases you can still file a paper return.

When do I need to submit my tax return?

There’s often lots of noise around the deadline for submitting your online return (which is 31st January), but the deadline for submitting a paper return is earlier and must be received by HMRC by 31st October.

Do I need to register before I can send a tax return?

Yes, you’ll always need to register before sending a tax return.

If you’re a sole trader or partnership

If you’re a sole trader or part of a partnership, then the onus is on you to make sure you’re paying the correct amount of tax and National Insurance on your self-employed earnings.

The deadline to register for Self Assessment is 5th October in your second tax year of business.

Thankfully, sole traders can earn up to £1,000 tax-free before they need to register and start sending tax returns to HMRC. This is known as the trading allowance.

If you run a limited company

Limited companies, on the other hand, need to pay Corporation Tax.

Most choose to register for Corporation Tax when they first incorporate the business with Companies House. If you do decide to defer it then you’ll need to register for tax within 3 months of starting to trade.

Does the way I submit my tax return affect when I need to pay the bill?

It can, yes – because the kind of tax return you must send determines what kind of tax you owe and the deadline for paying it.

For example, if you need to complete a Self Assessment then the deadline for paying your bill is 31st January (following the tax year it relates to).

Corporation Tax must be paid by 9 months and 1 day after the end of your company’s accounting period.

Making Tax Digital (MTD)

Now, if you’re used to sending a Self Assessment to report self-employed or landlord income, Making Tax Digital is something you really need to familiarise yourself with – and possibly start preparing for.

In simple terms, it’s a government-led initiative to try and modernise the tax system, while also minimising mistakes in the process. It’s already been rolled out for all VAT-registered businesses, and now it’s being rolled out in phases for MTD Income Tax.

MTD IT will replace the traditional Self Assessment, so instead of an annual tax return you’ll send HMRC smaller, quarterly updates on MTD compatible software, followed by a ‘Final Submission’ by 31st January each year.

You’ll need to follow MTD IT rules by:

• April 2026 if you earn more than £50,000 from self-employment and/or property
• April 2027 for those earning more than £30,000 in the 2025/26 tax year
• And April 2028 for those earning £20,000 in the 2026/27 tax year

An accountant can help make sure you’re complying with the MTD rules, so don’t worry if you’re a bit confused!

What happens if I miss a payment to HMRC?

You’ll incur an automatic fine if you miss a payment, and it gets worse the longer you leave it. Interest is also charged on top of penalties for any late payments. So, if you can’t pay, get in touch with HMRC immediately – as you could prevent this by setting up a Time to Pay arrangement.

If you need help with any of this, don’t hesitate to hire an accountant who will be able to walk you through the process and ensure you’re operating in the most tax-efficient way possible.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How to Complete a Tax Return appeared first on The Cheap Accountants.

CV and portfolio building

Your curriculum vitae and portfolio are both valuable ongoing resources showing what you’ve done, and therefore what you’re capable of. Continuously building on this shows potential clients all the ways in which you can add value through your services, with evidence based on real examples to showcase your work.

This might not always be so simple though, especially in the early days of your freelance careeer, during quieter spells, or if you’ve been working with clients under non-disclosure agreements.

Doing the work on a voluntary basis will allow you to show-off your problem-solving talents without fighting for the work first – hopefully helping you secure the job as a paid gig next time round.

It’s also a great way to test run brand new skills if you are in the process of a complete career transformation without being tied to any long-term employee contracts.

Making contacts

Volunteering in your chosen field means you are opening the door to a whole new world of contacts and opportunities you might otherwise miss.

You’ll be connecting with the right people and gaining access to resources which could help you get ahead.

Volunteer work is also great practice for networking, enabling you to hone in on your interpersonal and communication skills. It will stand you in good stead for future interviews and client meetings! You might even connect with someone who becomes a valuable mentor on your journey.

Employability

It’s common knowledge that the skills gap is still a prominent problem throughout the UK. Extra-curricular work towards learning and adopting new skills can help you stand out from the crowd.

Along with developing your skillset, taking up volunteering work demonstrates willingness, initiative, motivation and a drive to succeed. These are all extremely attractive qualities to prospective employees or clients who will be sifting through applicants or pitches.

Boosting confidence

CV building, contact making and employability are less important to the well-versed retiree who is simply looking to spend their time constructively. However, confidence boosting is vital to almost everybody as great self-esteem contributes to a healthy mind and positive productivity.

A survey by Reach Skills showed that more than one in three volunteers do it to increase their confidence levels and we salute them! Satisfaction, pride, sense of purpose and confidence in your own capabilities are all key ingredients to a happy well-rounded person, and staying motivated.

Good karma

As well as ticking lots of boxes for those of you still working your way up the career ladder, volunteer work will also allow you to rack up some serious good karma points.

If nothing else, altruistic acts of kindness make you feel all fuzzy inside and will give growing businesses the helping hand they need to succeed and we all know that feels, right?

Getting the most out of your volunteering experience

Taking a hiatus from money-making can be nerve-racking, so it’s important you get the most out of your volunteer experience. Be proactive in getting involved and go above and beyond what’s expected of you. Remember, it’s only temporary and one day these skills could be earning you a pretty penny.

If you feel like you aren’t getting enough out of the experience then speak up because volunteer work has to be a mutually beneficial process.

Lastly – ask questions. Be inquisitive to absorb the absolute most out of the situation and the people in it. Wring it dry!

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Will Volunteering Work Help My Freelance Career? appeared first on The Cheap Accountants.

This is where good financial planning and management come into play, helping to give your business a solid foundation as you look to establish yourself in the market.

In this article, we’ll share some of the best things you can do in the beginning to set yourself up for continued success.

Grab a notepad and pen, and let’s get started.

Do your homework

It can be tempting to just dive in headfirst once you have a business idea you’re happy with. But take a moment to consider how much you actually know about the market you’re looking to enter.

Do you know the ins and outs, or do you have more of a working knowledge?

If it’s the latter, you might want to rectify that before you get up and running. Conducting research into your chosen field shouldn’t just be a formality, though, or an exercise in ticking boxes.

Carrying out good market research and analysis is a sound business practice that can pay dividends in the long run – hopefully literally, if you’re running a limited company!

As well as giving you a good idea of what your operational costs are likely to come in at, early and ongoing market research will help you with things like:

• Setting fees and prices
• Understanding who your nearest competitors are
• What your customer is looking for from you, which will give you a better chance of securing work

Track your spending

Two words: cash flow.

This is super important to understand, but it’s also tricky for new businesses just starting out.

Again, your first impulse might be to cut to the chase and start spending right away, and this actually makes a good amount of sense. You obviously need to invest in your business if you want it to grow, right?

Yes, but you also have to be smart about it. If you miscalculate and then can’t pay your new suppliers on time then you might be out favour before you’ve even had a chance to make a good go of it.

Thankfully, good bookkeeping software can help with this, allowing you to track your spending and use short and long-term forecasting to work out when clients need to pay, so you can pay your own bills on time.

Once you have a cash flow forecast, you can then build in a buffer zone to give yourself a bit of breathing room.

Understand your tax obligations

Now, before you start to nod off, make sure you know what you owe.

The best starting point to this is deciding on a legal business structure. The way you set yourself up, for example as a sole trader or director of a limited company, affect the type of tax you need to pay as well as the deadline to pay it.

Failing to pay the correct amount (or type) of tax can result in hefty fines from HMRC, and no one wants that.

Some of the types of taxes you might need to pay include Income Tax, Corporation Tax, employer’s National Insurance, and VAT.

Being aware of these means you’re in a position to plan ahead, which brings us back to the importance of cash flow forecasting!

Set clear goals

If you want to hit a target, you first need to aim at one. That may go without saying, but it bears repeating.

So, using all the knowledge gained from conducting thorough market research, as well as from your cash flow forecasting, you should try and pinpoint exactly what you want to achieve with your business in both the near and distant future.

This ensures you are constantly improving and making progress, which helps to support long-term growth.

The bit that lots of startups struggle with is the fact that everyone’s goal is “make money”. Looking at all the facts and figures can help you make things a bit more clear cut. For example, “take on one client and bill this amount by this date”.

Leverage technology

If you’re starting a business today, you simply can’t afford to ignore the digital tools and platforms available to you.

Technology can and should create savings, representing a valuable return on investment.

For example, if you’re starting up in retail, you should familiarise yourself with Electronic Points of Sale (EPOS), and perhaps even inventory management systems if you really want to make your life easier.

More generally, you should look at ways you can market your business on social media platforms like Instagram and TikTok, as this is a great way to expand your reach (and hopefully your customer base).

Every business will of course be different in this regard, so find your unique selling point and get creative.

We know it’s not easy taking your first steps in business formation, but put in the effort with financial planning and you’ll reap the rewards.

If you’re unsure about any of this, don’t hesitate to get in touch with an accountant, who will be able to simplify everything and walk you through the whole process.

Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Top Tips for Financial Planning in the Early Days appeared first on The Cheap Accountants.

In fact, finding reliable guidance is key no matter what stage your business is at, because scaling and growing are every bit as crucial as the launch itself.

There are certainly lots of places you can explore to find this support; friends and family; business loans; grants, crowdfunding campaigns; investment – just to name a few. Another option you could explore is becoming part of a business incubator programme.

In this blog post, we’ll look at what these business development programmes are, and what support you can access.

What is a start-up business incubator?

Business incubators are support programmes designed to help fledgling entrepreneurs or start-up owners access all kinds of invaluable resources, from money to advice. They can often help open doors for new business owners, providing guidance and opportunities.

Types of business incubator can vary, with lots of different programmes designed to nurture specific industries and sectors. This is important to remember when deciding on the right incubator for your business.

In general, however, start-up incubators can help facilitate anything from access to office space and financial support resources, to expert workshops and introductions to investors and mentors.

What does a business incubator usually offer?

The precise nature of support a business incubator provides depends largely on what issues that particular programme sets out to solve, but some issues or obstacles which are universal for business start-ups, no matter what their niche or specialty.

So, whilst some business incubator programmes might include additional support for a specific industry, there are some general themes such as the offer of training and workspace.

Low-cost working spaces

Organisers of an incubator programme will often provide new business owners with access to discounted co-working spaces. This helps keep your initial operating costs down, and can even help you to expand your network in the process.

Education and training

Workshops, training, and various educational sessions are an integral part of business incubation. They can provide fantastic opportunities to learn from those who have been there before.

Access to a network of mentors

Being part of an incubator programme will often put you in touch with mentors from a variety of business backgrounds.

Research into the issues entrepreneurs face revealed some aspects of running a business can be more complicated than new business owners expected, so a mentor can help you approach new situations or plan ahead for them.

Routes into potential funding

Participating in an incubator programme can help a business look appealing to prospective investors. In some programmes you might also have access to funding options such as grants, loan schemes, and even investors willing to offer financial support as you start up.

Relationships with other start-up business owners

You will meet other entrepreneurs along the way and build your network of contacts and friends. These sorts of relationships should never be underestimated in the world of business!

Discounted rates for services

This isn’t a given with all incubator initiatives, but some do provide access to discounts on various services, such as accountancy or legal support, for example.

How does a business incubator programme typically work?

Business incubators are there to encourage entrepreneurialism, so they’re often offered by universities to graduating students looking to take the next step. You can also find schemes through local councils, government departments, or other business groups such as the Chamber of Commerce.

It’s always worth researching in detail precisely what a particular incubator programme is offering to its participants so you can make sure you’re enrolling in one right for you. Think about where your start up needs support or what guidance it needs most, then decide which incubator(s) you’d like to apply for.

Top tip: Read testimonials and case studies or reach out to past programme participants to glean some insight into how they found a programme. This will give you a good steer on how it might benefit your own business.

Do I have to apply to be part of a business incubator?

Yes, in order to take part in a business incubator programme, you will need to go through an application process. This will usually involve an interview stage.

Can I be involved with more than one incubator at a time?

This will be at the discretion of the programme organisers. Some will permit you to be involved with multiple incubators simultaneously, while others might stipulate you aren’t. Whether or not this is a good idea depends very much on you and your needs!

How much does a business incubator cost?

A lot of business incubators are free to use, because they’re often funded by government or commercial initiatives of some sort. There are other similar accelerator initiatives that might charge things like services fees, or ask for stakes in your start-up, but where non-profit incubators are concerned this isn’t standard practice.

How long is a business incubator programme?

There’s no one-size-fits-all answer to this question because the duration of business incubators varies massively. As a rough guideline: these types of programmes can range between anything from a couple of months to four or five years.

What is worth noting here is that once you’re accepted onto a programme, you will be expected to invest the necessary time into it—something you’ll need to consider before committing to anything.

 
Find more help and advice for start-up businesses in our online hub, and find answers to tax questions to help you get started.

The post Can a Business Incubator Help My Start-up? appeared first on The Cheap Accountants.

What is the sugar tax?

The sugar tax – or the Soft Drinks Industry Levy (SDIL) to use its proper name – is a tax on pre-packaged drinks that contain added sugar.

It aims to function as a kind of deterrent, encouraging drink manufacturers to reformulate high-sugar beverages in order to avoid paying the tax.

What does the sugar tax apply to?
There are also certain exemptions to be aware of though, so the sugar tax won’t apply to:

• Drinks with less than 5g of total sugar per 100ml
• Pure fruit and vegetable juices
• Alcohol-free beer and wine
• Powdered drinks

Pre-packaged milk-based drinks like bottled milkshakes and coffees are technically exempt for now, but this is also set to change from January 2028, including for plant-based alternatives (such as oat milk) with added sugar.

What this doesn’t include, however, are “open cup” milkshakes and coffees prepared in places like cafés, bars or restaurants.

Who pays the Soft Drinks Industry Levy?

The sugar tax applies to manufacturers and importers of pre-packaged sugary drinks, meaning retailers don’t pay the tax directly. That doesn’t mean they won’t feel the effects though, and any business selling sugary drinks is likely to deal with higher costs from their suppliers as a result.

Smaller manufacturers (who produce less than one million litres of drinks above the threshold per year) are exempt from having to pay the tax.

How much is the sugar tax?

The tax basically works on a two-tier system, with the rate of tax depending on the exact amount of sugar contained within each drink.

The levy currently applies to drinks with added sugar that contain more than 5g of total sugar per 100ml. For 2026/27 the sugar tax rate is:

• £1.94 per 10 litres of any drink which has between 5g and 8g of sugar per 100ml
• £2.59 per 10 litres of any drink which has 8g or more of sugar per 100ml

From January 2028, though, the minimum threshold for the lower rate of sugar tax will be lowered from 5g of total sugar per 100ml to 4.5g of total sugar per 100ml. Manufacturers will need to reduce sugar levels by this date if they wish to avoid paying the tax.

How will the changes impact my business?

If you’re a manufacturer the you pretty much have two options: reformulate your product so its sugar content is below the lower threshold, or accept that you’ll have to pay the tax. Either way, the cost is high, and so you’ll likely have to pass it on to customers by way of higher prices.

Companies that choose to pay the tax could spend up to £259,000 a year depending on what tier they’re in.

Sugar tax and smaller retailers

If you’re a small business that sells pre-packaged sugary drinks, you could find yourself being charged a lot more by your supplier. This means you may find yourself having to raise prices in order to try and offset the cost without eating into your own profits.

A bigger chain like Starbucks or Costa is more equipped to deal with higher taxes, whereas independent operators with a select number of locations are more likely to struggle with tighter cashflow.

It’s well worth chatting to an accountant about this. They’ll walk you through the process and also ensure you’re operating in the most tax-efficient way possible, claiming everything you’re entitled to.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How Will the Sugar Tax Impact My Business? appeared first on The Cheap Accountants.

This rupture certainly isn’t helped by the many misconceptions surrounding the concept of outsourcing.

In this article, we want to clear a few things up by presenting some of the most common myths about outsourcing, then busting them with the facts so you can decide how outsourcing might help your business.

The myth: Outsourcing means you lose control of project management

Some people find the idea of working with external parties who aren’t part of the in-house team overwhelming.

You can see your colleagues sitting right in front of you. Why would you outsource to someone who might not even be working the same timezone?

For some, this suggests nothing but a loss of control.

The truth

Often, one of the most productive things you can do for your business as an owner or manager is open the door to others more proficiently skilled. Even if they are working six hours ahead or behind, from the comfort of their own home.

With technology working its magic, remote project management and collaboration between geographically distant teams in and external to the business has never been easier.

With the right systems in place, great communication, and the odd tool to help you out here and there, those you’re outsourcing to will simply become an extension of the team.

The myth: Outsourcing is something only big companies can afford

Plenty of business owners see outsourcing as a luxury that only big companies with lots of resources can afford. They see the cost of outsourced work as an added expense on top of the regular salaries and overheads – but what about ditching tradition?

The truth

Outsourcing skills or services can actually be a great way to spend more sensibly and help budgets stretch further.

For example: rather than employing a full-time marketing social media exec to write a couple of social media posts per week, dissolve the role in favour of a freelancer or agency who can do the same, for a fraction of the cost. Plus, you don’t need to pay any employer’s contributions for them.

The myth: Outsourcing causes risks with data and cyber security

Far too often we see businesses shying away from outsourcing due to fears around cyber-attacks and data breaching. We hear you, and you’re right to be concerned about the online security of your business, especially when working with external parties. Just don’t let that be what puts you off outsourcing.

The truth

Sure, if you’re not careful, working with external parties can compromise your data, but this is why contracts are useful. A freelancer or contractor is no more likely to result in a data protection breach than an employee.

The myth: Outsourced work isn’t as high quality as in-house work

Some believe that the best work can only be done by those operating from inside the business. Employers can find it difficult to process the idea that external professionals can do just as good a job as an employee.

The truth

Recruitment is important! This is how you hire, or use the services of, good people who are dedicated to doing the job well. People are motivated in different ways, so one employee might be just as switched on as the next freelancer.

When you outsource to somebody, you’re buying into a specific, fine-tuned skillet that’s been honed. Their expertise can take you to the next level.

Sometimes, full-time employees can become generalists spread thinly, with fingers in a number of pies. The experts you outsource to, however, are masters of their craft. Plus, they’re well-versed in getting to know a business’s brand, tone of voice, culture and identity at super-speed.

Wondering how outsourcing skills might impact your business finances? Use our handy tool to ask a tax-related question for free and let our experts give you a (generous) nudge in the right direction.

The post Dispelling Common Myths About Outsourcing appeared first on The Cheap Accountants.

In some cases this can be where Debtor Protection Insurance swoops in to save the day. In this article we explain what this type of insurance covers, and who might benefit.

What is Debtor Protection Insurance?

Debtor Protection Insurance is a type of insurance cover designed to safeguard a business against customers who don’t pay their debts, or who cease to trade before they’ve settled an outstanding balance.

It enables businesses to insure themselves against the non-payment of invoices but more importantly, protect against the consequences they would otherwise have to face at the hands of customers who won’t – or can’t – cough up the cash.

It also offers reassurance in a situation where your business has to spend money on services or materials upfront in order to carry out work for a customer. If the customer ceases to trade before the work has been carried out, you run the risk of losing a lot of cash and swallowing up valuable finances for nothing.

The benefits of this type of insurance cover

So, why do so many businesses choose to fork out for Debtor Protection cover? Well, because:

• It helps maintain cash flow when customers fail to pay money owed, or cease to trade
• It helps support business-as-usual, even when you are struggling with late payments
• Generally, it tends to be a low-cost, affordable service (so well worth the investment)
• Many services cover both UK and overseas debts
• Gives you reassurance and peace of mind so you can concentrate on more important things

How does it work?

If you invoiced a customer and they fail to pay you, Debtor Protection Insurance means any financial loss can be absorbed by your provider. You won’t have to suffer the fallout of the financial blow yourself.

In terms of how payments are made, how long it takes to fulfil a claim and other granular details of the process, you’ll need to ask each individual insurance provider as this can vary from policy to policy.

Who needs this type of cover?

Debtor Protection Insurance is something businesses of all shapes and sizes can benefit from. It’s particularly useful for small businesses and start-ups who need to keep an eye on every single penny that goes in and out of the accounts.

For larger, established businesses with a more solid cash flow, late payments might not be such a pressing matter, so insuring debtors may not be top of the priority list. It’s still best practice if budgets permit.

How much does Debtor Protection Insurance cost?

You won’t need us to tell you that the cost of business insurance can vary quite significantly from provider to provider. That makes answering this particular question a little tricky and for that reason, we suggest doing your own research to find out.

How much you pay for your Debtor Protection Insurance cover will depend on a number of variable factors such as how old your business is, your typical monthly turnover, how much is owed to you in invoices, your history of bad debt, as well as any information you provide about outstanding aged debtors.

As with any insurance cover, it’s always a good idea to do your homework and shop around before signing your name on any dotted lines.

Get a few quotes and go through all of the small print with a magnifying glass to ensure you’re working with a reputable provider who will be able to protect your business when it comes to the crunch.

 
Looking for more support with your business finances? Use our resource centre to find cheap accountants and more business support.

The post Should I Get Debtor Protection Insurance for my Business? appeared first on The Cheap Accountants.

From April 2026 the hourly rate for over-21s will rise by 50p to £12.71, with workers aged 18-20 seeing an 85p rise to £10.85, and under-18s and apprentices getting 45p more – going up to £8.00 an hour.

While these changes are undoubtedly positive for employees, leading to a better work environment – they can put a strain on small businesses with tight profit margins, significantly increasing their expenses.

In this article, we’ll explain the key differences between the National Minimum Wage and the National Living Wage and also look at some strategies to help you cope with employment costs in your business.

What is the National Minimum Wage?

The National Minimum Wage is the legal minimum rate of pay UK employers must pay most workers. It applies from the compulsory school leaving age and is set at different levels depending on age and employment status, including apprentices.

Employers are legally required to ensure eligible staff are paid at least the applicable minimum wage rate for their category of work.

The specific rate a worker is entitled to depends on their age group and whether they are an apprentice or not.

What is the National Living Wage?

The National Living Wage is the highest rate within the UK minimum wage system. Despite its name, it’s not directly linked to the actual cost of living. Instead, it’s set as a proportion of median earnings across the UK workforce.

The National Living Wage currently applies to workers aged 21 and over, but it doesn’t apply to those in the first year of an apprenticeship.

Minimum wage vs National Living Wage

In short, you have to pay workers at least the National Minimum Wage or the National Living Wage.

How do you know which one, though?

Again, it depends on the age of the employee and whether they are an apprentice (as different age bands apply). This article explains the differences and what rate applies in more detail.

There’s also the Living Wage (or Real Living Wage) to be aware of. Not to be confused with the National Living Wage, this is voluntary and based on the actual cost of living at the time, reflecting what people need to cover the essentials.

Around 16,000+ UK employers are currently accredited as Real Living Wage employers, benefitting over 490,000 employees. It also benefits businesses too – with 94% of accredited employers stating this.

How are small businesses affected?

A minimum wage rise often hits small businesses first through higher labour costs. Even a small hourly increase quickly adds up, pushing up monthly overheads.

For example, a café with six staff working 30 hours a week would pay about £90 more weekly after a 50p per hour rise – that’s nearly £4,700 a year before extra costs like National Insurance and pensions going through PAYE. For businesses with tight margins, that can make the difference between making a profit or a loss.

Labour-heavy sectors like hospitality, retail, and care feel it most. Businesses may cut overtime, rethink staffing during quiet periods, or raise prices. Over time, the pressure can also affect hiring plans, expansion, and overall growth.

What can small businesses do to adapt?

Like any external factor affecting your small business, identifying issues and adapting to them early on can create more breathing room.

Restructuring is perhaps the most obvious approach, and this involves things like consolidating roles and streamlining processes in an attempt to cut back on spending. It’s not always the most appropriate course of action though, especially if the type of work you’re involved in demands a minimum number of staff on duty.

Alternatively, you could consider outsourcing, which is where you delegate certain tasks to professionals outside the business (e.g. freelancers or an agency). This approach could even be paired with the introduction of new automations to help offset the impact of increased labour costs.

Are there other ways to save money?

Thankfully, there are!

Some employers can use the Employment Allowance to reduce their National Insurance bill by £10,500 each year.

In order to qualify, you need to have at least one employee earning more than the £5,000 Secondary Threshold for National Insurance (or at least 2 directors if you don’t have any employees).

What’s more, you don’t need to be paying more than £10,500 to qualify, either.

If you’re unsure about any of this, an accountant can walk you through the process and also ensure you’re operating in the most tax-efficient way possible, and claiming everything you’re entitled to.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Minimum Wage Rises: What Can My Businesses Do to Stay Afloat? appeared first on The Cheap Accountants.

Every sale you make and every penny of profit you achieve all started with one spark of an idea. In legal terms that idea is known as your Intellectual Property (IP).

In this blog post we’ll be exploring why it’s so crucial to protect your IP and your creative assets at all costs, covering:

• What Intellectual Property actually is
• Why it’s so important to protect IP
• At what point you should protect an idea
• The best ways to protect your business ideas
• What to do if your IP has been infringed

What is Intellectual Property?

Intellectual Property is anything original you create, covering all sorts from music or artwork to software or a product invention – and so many more things in between. It also includes your business name, logo, products, or services.

Owning IP makes sure it’s only the creator(s) who can legally profit from their work by preventing other people or businesses using it unlawfully.

There are a number of ways you can protect your work – your IP – and we explore each of these in more detail further down.

Why it’s so important to legally protect your IP

There are a number of reasons why protecting your IP and creative assets is so important, including:

• Safeguarding your income and preventing anybody from profiting from your ideas without your explicit permission
• Shielding what helps you stand out from the competition and preventing your competitors replicating whatever brings you success
• Helping you avoid costly legal action further down the line if you find yourself in a situation where your IP has been infringed. It’s much better to prevent a problem than to have to deal with its consequences.

At what point should you think about protecting an idea?

In general, it’s important to think about protecting your ideas and your IP as soon as possible. The point at which you can do this very much depends on the circumstances.

If you’ve just got an idea for a business that hasn’t started trading yet, applications for IP protection aren’t typically accepted. So, if you want to safeguard an idea for further business development later on, you might consider:

• A Non-Disclosure Agreement (NDA) so you can talk to other people about your idea, but they can’t disclose it elsewhere
• Setting up a company (and leaving it dormant) so it can ‘hold’ your IP until you’re ready

If you’re looking to protect a practicing idea or creative asset for a business that is already trading, on the other hand, you should do so sooner rather than later. So, if your business is registered and you’re ready to start trading, there’s no time like the present to start protecting your IP.

The best way to protect a business idea

When it comes to safeguarding your ideas and Intellectual Property, there are a number of routes you can take, depending on the nature of your asset(s).

Non-Disclosure Agreement (NDA)

If your business isn’t trading yet and your idea isn’t in practice, the best way to protect yourself is with NDAs. Anybody who signs is under contract not to discuss or share your ideas without your permission.

If you’re talking to a client or a supplier about your idea, for example, you can get them to sign an NDA to keep your plans under wraps.

Patent

Patents are most commonly used to protect inventions. A patent gives the inventor exclusive rights, granted by the government, which mean nobody else can replicate, sell, or make money from that invention.

There are two different types of patents:

• Utility patents (the way something works)
• Design patents (the way something looks)

Both types require the inventor to go through a rigorous application process to check criteria. If an invention is just a modification of something that already exists, for example, a patent cannot be granted.

Top tip: Patents are only applicable in the country which grants them, so always try to secure a Worldwide Patent wherever you can.

Trademark

Trademarks are most commonly used to protect a business’s brand. They can cover elements such as a company name and logo, and sometimes even specific words and colours. Trademarks are designed to protect your business’s unique identity by preventing others replicating it too closely.

Once you have a trademark in place, you can start using the registered (®) symbol to demonstrate that your IP is protected. As with patents, trademarks only apply in the country which grants them, so it’s vital to apply for trademark registration anywhere you plan to do business.

Copyright

Unlike trademarks and patents, you don’t actually apply for copyright. Instead, copyright applies automatically to any original works or ideas that have been expressed.

The following assets are automatically protected by copyright, meaning you don’t need to take any action:

• Original literature, drama, music, and art
• Sound and music recordings
• Film and TV recordings (including broadcasts)
• Original illustration and photography
• Original software, web content and databases
• Original layouts

You can – and should – mark your creative assets with the copyright symbol (©) to indicate the protection. This isn’t a legal requirement and not using the symbol won’t impact the copyright protection, but it is best practice.

Copyright expires after a certain period of time so make sure you do your research to ensure your ideas stay secure. Most copyright is in place for 70 years but there are some instances where this is much shorter.

You can license or sell your copyright to third parties via a legal contract that passes usage rights over to them. You can then start reaping the rewards of royalties. To do this, you’ll need to register your work with a licensing body.

Trade secret

Trade secrets conceal confidential business information from the public domain. This could be a formula, a process, a technique, or even a secret recipe that you don’t want the world to know about.

You cannot officially register a trade secret and instead they’re protected by common law under the law of confidence. However, this is where Non-Disclosure Agreements come back into play, to prevent anybody sharing your secrets unlawfully.

What to do if your Intellectual Property has been exploited

There are several actions you can take if you find your IP being used without permission.

1. Take a deep breath and sleep on it

Any correspondence you have with somebody regarding infringement can be used in legal proceedings, so be mindful about what you say or do in the heat of the moment.

2. Issue a cease-and-desist letter

This should outline the problem and how you wish for it to be resolved, as well as detailing all of your IP rights.

3. Negotiate a resolve amongst yourselves

Sending a cease-and-desist letter will, hopefully, be enough for you to come to an agreement without the need for legal support. In most cases an IP violation will be an honest mistake which you can quickly resolve. You can also ask someone to mediate on your behalf if you prefer.

4. Seek legal advice

If step 3 doesn’t solve the problem, it could be time to take further legal action. A solicitor will be able to assist you but just be aware of the potential costs before committing to anything.

Can an accountant help me with IP?

Navigating Intellectual Property protection can seem daunting so if you’re feeling overwhelmed don’t worry, you’re not alone. Whilst they might not offer legal advice per se, accountants can help you deal with the financial impact it might have on your business. They can also help you set up a limited company to offer your ideas more legal protection.

So, if you’re looking to protect your business, speak to an accountant who will be able to help guide your strategy and finances. They’ll also be able to advise you on what level of protection best suits the various elements of your business and its Intellectual Property.

 
Find more help and accounting support in our online hub, or learn more about finding an accountant.

The post How Do I Protect an Idea? appeared first on The Cheap Accountants.