sole traders

Employment Law Cost Puts Sole Traders off Expansion

A new survey of sole traders reveals that the cost of employee pension plans, sick leave and worker-friendly dismissal rules are deterring some small businesses from becoming employers, leading to calls by business organisations to exempt micro-firms from some employment rules. The British Chambers of Commerce (BCC) polled over 1,000 sole traders to find out what they really think about hiring people. Almost a third of respondents named the forthcoming compulsory pension payments to employees as their main barrier. From 2012 onwards, firms will have to start paying 3 per cent of each employee’s monthly salary into a pension pot — and manage employee contributions and the fund. Under the new law, businesses with fewer than 250 employees start contributing in 2014. Dr Adam Marsha... »

Sole Traders Opting Out of Business Banking

Sole traders and home-based businesses are shunning business banking in favour of personal accounts, writes Farah Jifri. According to research by Moneysupermarket.com, more than a million owner-managers are choosing to stick with their retail account rather than take advantage of specialist services that may accompany business banking, the survey suggests. The British Bankers’ Association (BBA) believes this is largely because owner-managers do not get around to changing their accounts as their business that started as a hobby evolves. Moneysupermarket.com, however, claimed the main reason was the wide gap between interest rates available on personal and business accounts. A high street bank might offer up to eight per cent interest on balances up to £2,500 in their personal accounts... »