Answers to what owners ask most
The short answer first, then the detail and the law.
19 answers
- EmploymentHow much notice do I have to give an employee?Once an employee has worked for you for a month, the legal minimum is one week's notice, rising to one week for each full year of service from two years, up to 12 weeks. If their contract gives a longer period, you must give the longer one. You can pay them in lieu instead of having them work it, but without a pay in lieu clause you need their agreement.
- EmploymentDo I have to pay redundancy?Yes, if the employee has at least two years' continuous service and you dismiss them because of redundancy. Statutory redundancy pay is half a week's, one week's or one and a half weeks' pay for each full year worked, depending on their age, with weekly pay capped at £751 and a maximum of £22,530 for redundancies on or after 6 April 2026. An employee who unreasonably turns down suitable alternative work can lose the payment.
- EmploymentDo I need to give employees a written contract?An employment contract doesn't have to be written down: it exists as soon as someone accepts your job offer. But you must give every employee and worker a written statement of the main terms on or before their first day, covering things like pay, hours, holiday, notice and probation, with a few more details due within two months. Most employers meet this by issuing a written contract that includes everything the statement must contain.
- EmploymentIs my contractor actually an employee?Possibly. The label in the contract doesn't decide it: tribunals and HMRC look at how the relationship works in practice, especially whether the person must do the work personally, how much control you have and whether they are genuinely in business for themselves. If they are really a worker or employee, they are entitled to rights such as the minimum wage and paid holiday, and if they are an employee for tax you should be running them through PAYE.
- EmploymentCan I do unpaid trial shifts?Only if the trial is short and genuinely part of recruitment. Government guidance says a trial of a few hours to test someone's ability may not need to be paid, but a trial lasting longer than one day is likely to require at least the minimum wage in all but very exceptional circumstances. If the person is doing real work your business benefits from, pay them, at least £12.71 an hour if they are 21 or over.
- EmploymentHow much holiday are employees entitled to?Almost all workers are entitled to 5.6 weeks' paid holiday a year. For someone working five days a week that's 28 days, which is the statutory maximum, and you can count bank holidays within it. Part-time staff get 5.6 weeks pro rata, and irregular hours and part-year workers build up holiday at 12.07% of the hours they work.
- Getting paidWhat can I do when a client won't pay an invoice?Escalate in steps: check what was agreed, chase, then send a letter before action with a firm deadline. If the client is a business, you can usually add statutory interest at 8% over the Bank of England base rate plus £40 to £100 in fixed compensation. If they still won't pay, you can make a county court claim online or, for a debt that isn't disputed, serve a statutory demand.
- Getting paidHow do I write a letter before action?A letter before action sets out what you're owed and why, how you worked out the amount, a deadline to pay or respond, and that you'll start court proceedings if they don't. If the debtor is an individual or sole trader, follow the Pre-Action Protocol for Debt Claims, which sets out what to enclose and gives the debtor 30 days to reply. For a company, give a reasonable time, usually 14 days for a straightforward debt.
- Getting paidCan I charge interest on late payments?Yes, if your customer is a business. Under the Late Payment of Commercial Debts (Interest) Act 1998 you can claim simple interest at 8% over the Bank of England base rate, which works out at 11.75% a year for debts that fell due in 2026, plus fixed compensation of £40, £70 or £100 for each late payment. Consumers aren't covered: you can only charge them interest if your contract says so and the term is fair.
- Getting paidHow long do I have to chase a debt?In England and Wales you generally have six years from the date payment fell due to start a court claim for a debt under an ordinary contract, or 12 years if the contract was made as a deed. A signed written acknowledgment of the debt or a part payment restarts the clock, but only if it happens before time runs out. In Scotland most contract debts are extinguished after five years.
- ContractsAre verbal agreements legally binding?Usually, yes. Under UK law a spoken agreement can be a binding contract if it has the usual elements of one, and a court can enforce it. The exceptions are deals the law says must be in writing, such as contracts to sell land and guarantees, and the practical problem is proving what was agreed.
- ContractsWhat should I check before signing a contract?Check who you're contracting with, exactly what each side must deliver, how and when you'll be paid, how long the contract runs and renews, and how much liability you're taking on. Then look at how either side can end it, who owns any intellectual property and which law applies. Business contracts get far less legal protection than consumer ones, so expect to be held to what you sign.
- Starting a businessShould I be a sole trader or a limited company?A sole trader is the simplest way to start: you register with HMRC and keep the profits, but you are personally liable for every business debt. A limited company is a separate legal person, so your risk is usually limited to what you put in, in exchange for more admin, public filings and identity checks at Companies House. Many people start as sole traders and incorporate once profits, risk or investment plans grow.
- Starting a businessDo I need to register my business name in the UK?Not if you're a sole trader or partnership: the UK has no general register of business names, so you register with HMRC for tax and can start trading. A limited company's name is registered when you incorporate it at Companies House. Either way, the name must follow the rules on sensitive words and disclosure, and registering it doesn't stop anyone else using it as a brand.
- Selling onlineDo I have to give customers refunds?You must put things right when goods are faulty, not as described or not fit for purpose, and a consumer who rejects faulty goods within 30 days is entitled to a full refund. For most online, phone and mail-order sales, consumers can also cancel for any reason within 14 days of delivery. In a shop, you don't have to refund a change of mind unless your own returns policy says you will.
- Selling onlineCan I add customers to my email list?Only if they've agreed, or the soft opt-in applies. Under the Privacy and Electronic Communications Regulations 2003 (PECR), you can email marketing to people who bought from you, or asked about buying, if you're promoting your own similar products and gave them a simple way to opt out when you collected their email and in every message. Anyone else, including people on bought lists, needs to have actively consented.
- Selling onlineDo I need a privacy policy for my business?Yes, if you collect personal data, which almost every business does through its website, enquiries, orders or staff. The UK GDPR requires you to tell people who you are, what you collect, why, your lawful basis, who you share it with, how long you keep it and what their rights are, usually in a privacy notice on your website. If you use non-essential cookies you also need a cookie notice, and most businesses must pay an annual data protection fee.
- Brand and IPDoes registering a company name protect my brand?Not really: registering a company name at Companies House only stops another company registering the same name. It doesn't let you stop others trading under a similar name, and it won't protect you if someone else owns the trade mark. A registered trade mark from the Intellectual Property Office is the main way to protect a brand name or logo in the UK.
- Brand and IPSomeone copied my logo. What can I do?You may be able to stop them using a registered trade mark, copyright in the logo artwork, or passing off. Check which rights you own and gather evidence first, then consider a platform complaint or a carefully worded cease and desist letter. Be careful how you word any threat, because an unjustified trade mark threat can expose you to a claim.
Your situation is different?
Ask Taylor. Free answers in seconds.