If your answer is yes then you are not alone as a recent British Chamber of Commerce survey highlighted the various concerns raised by sole traders when it comes to employing staff. Issues raised that have been putting sole traders off hiring included dismissal processes, sickness absences, equality legislation, statutory payments and flexible working. Some were worried about National Insurance Contributions, while unaware of the National Insurance 'holiday' for startups, highlighting the need by businesses to fully investigate the assistance that is on offer from the government. For example, did you know about the exemption to micro businesses to new domestic legislation for three years from April of this year?

Clearly the issues revolve not just around the actual hiring, but also the long-term costs and management of the staff and not surprisingly many sole traders have been turning to freelancers to fill the gap. It seems yet again the burden of red tape is preventing many small businesses from taking the next step to growing their businesses. Will the Red Tape Challenge bring any benefit to this area of legislation we wonder?

Image courtesy: Michal Marcol / FreeDigitalPhotos.net

While many sole traders may think they are saving money by carrying out their own bookkeeping, research carried out by Unbiased.co.uk has shown over half might actually be missing out on tax savings because they are not using professional accountants for their bookkeeping. Of those surveyed, just over half admitted to doing their own accounts and a fifth of micro-businesses (which consist of 1-9 employees) were also taking a DIY approach to bookkeeping. Clearly it is a risky route to take, especially with the HMRC crackdown on poor small business accounting, which could land business owners with a hefty fine.