The Intercom messenger

When you first dive into Intercom, you’ll want to start with the basics of setting up your account. I always tell new users to think of Intercom as their digital front desk – it’s where all your customer conversations will live. Begin by installing the messenger on your website or app. You can customise how it looks to match your brand’s style. Take some time to play with the colours and messaging – it makes a difference in how welcoming your space feels to customers.

The Intercom inbox

The heart of Intercom is the inbox. This is where you’ll spend most of your time, managing conversations with your customers. Think of it as your command center. You can organize conversations however makes sense for your team – maybe by urgency, by department, or by customer type. I’ve found that taking a few minutes to set up some basic routing rules saves hours down the line. You can tell Intercom to automatically assign certain types of messages to specific team members, so everyone knows exactly what they should be working on.

Marketing and messaging automation

Let’s talk about marketing and messaging automation. This is where Intercom really shines. You can reach out to your customers at just the right moment with targeted messages. Maybe someone’s been looking at your pricing page for five minutes – that might be a good time to offer help. Or perhaps they haven’t logged in for a week – you could send a friendly reminder about a feature they haven’t tried yet. The key is to make these messages feel natural and helpful, not pushy or automated.

Custom bots, Resolution bots and Fin AI

Custom bots are game-changers for handling common questions. Custom bots, Resolution bots and Fin (which uses a 3rd party LLM) are ideal for a business that is drowning in basic support questions. But here’s the thing about bots – they need to know when to step aside and let a human take over. Make sure you set up clear paths for escalation.

Iain had this to add:

“Bots” have had quite a few incarnations in Intercom, and it’s quite confusing at times to explain the differences between a Custom Bot, Resolution Bot (as was) and Fin. You should think of Custom bots as a “pick your path” with users selecting answers to automated questions. This is great to triage and route to FAQs quickly. Resolution bots used to simply be autoresponders based on types of query, now they are integrated into Fin. Fin is a wrappered LLM (commonly referred to AI) which ingests the information you feed it, and gives very humanistic narrative responses. This is great for nuance and specific responses that can be required.

Single customer view

The real power of Intercom comes from understanding your customers. You can track all sorts of useful information – how often they use your product, what features they love, where they get stuck. Use this data to create segments of similar users. This helps you send more relevant messages and provide better support. For example, you might want to treat your power users differently from newcomers, or give extra attention to customers who might be at risk of leaving.

Automate marketing, operations and customer support

Automation is your friend, but it needs a human touch. You can set up rules to handle routine tasks automatically. Maybe you want to tag conversations about billing issues, or automatically follow up with customers who haven’t responded in a while. The trick is to make these automated actions feel natural. If executed well, customers should they were talking to a real person until they were told otherwise.

Reporting and measurement

When it comes to measuring success, keep an eye on the metrics that matter to your business. How quickly does your team respond to messages? How satisfied are your customers after conversations? Are your automated messages actually helping people find answers? Don’t just collect numbers – use them to make things better. If you notice that certain types of questions keep coming up, maybe it’s time to update your help center or create a new bot flow.

Triage, teams and roles

Setting up teams in Intercom requires some thought about how your company works. You might want separate teams for sales, support, and success, each with their own workflows and goals. Make sure everyone knows their role and has the right access to do their job effectively. Cross-team collaboration is easier when everyone can see the full context of customer conversations.

Scaling Intercom

As you grow, you’ll need to think about scaling your Intercom setup. Start automating more processes, but do it gradually. Test new automations with small groups before rolling them out widely. Keep refining your bot responses based on what works and what doesn’t. And always have a plan for handling spikes in conversation volume. Don’t forget also, that as your users in your workspace grow, so too might your billing overages!

Iain, our Intercom Consultant:

The best Intercom workspaces are constantly changing and evolving. What was cutting edge last year in Intercom rarely stays that way a year later, and they have a vested interest in rolling out new features constantly. Some of these are paid add ons, but often these are extensions to default functionality that you are already paying for. It’s a good idea to keep abreast of new product announcements and test them for suitability when they are made live.

Security and Privacy

Security and privacy matter more than ever. Make sure you understand how to protect customer data in Intercom. Set up the right access levels for team members, and regularly review who has access to what. Keep an eye on your data retention policies and make sure you’re complying with relevant regulations.

The post Intercom for Small Businesses – Setting up and Using Intercom for Customer Support and Automation (2025 Beginners Guide) appeared first on Compare Business Bills.

We asked a leading web hosting comparison site for their tips. Here’s what they came up with!

Shared hosting vs Dedicated hosting for your small business

Small business owners face a choice between two main types of hosting: shared hosting and dedicated hosting. Think of shared hosting like renting a desk in a co-working space. You get what you need at a lower cost, but you share resources with others. Dedicated hosting, on the other hand, is like having your own private office – it costs more, but you get complete control over your space and resources.

Shared hosting works well for many small businesses, especially those just starting out. You’ll share a server with other websites, which keeps costs down. The hosting company takes care of server maintenance, and you won’t need technical expertise to get started. However, you might notice slower loading times during peak traffic periods, as other websites on your server compete for resources. Security can also be a concern – if another site on your shared server gets hacked, your site might be vulnerable too.

Dedicated hosting gives you an entire server to yourself. Your website will load faster because you’re not sharing resources, and you’ll have better security since you control the entire environment. The downside? It costs significantly more than shared hosting, and you’ll need more technical knowledge to manage it effectively. Most small businesses don’t need dedicated hosting when they first launch, but it’s worth considering as you grow.

Hosting speed matters to your users (and to Google)

Website speed shapes how people feel about your business. When someone clicks on your site, you have about a twentieth of a second to make an impression. If your page takes too long to load, they’ll likely leave and visit your competitor instead. Your hosting choice directly affects your site’s speed.

Google pays attention to your site’s speed too. Faster websites tend to rank higher in search results, which means more potential customers can find you. Your hosting provider should offer enough power to handle your traffic and keep your site running smoothly.

Good technical support is priceless

Every website runs into problems occasionally. Maybe your site goes down during a busy sales period, or you need help with a technical issue. Your hosting provider’s support team becomes your lifeline in these situations.

Look for providers offering 24/7 support through multiple channels – phone, email, and live chat. They should respond quickly and actually solve your problems, not just read from a script. Ask potential providers about their backup systems too. Regular backups protect your site’s data and let you restore everything quickly if something goes wrong.

What is uptime in hosting (and how to calculate uptime)

You might hear hosting companies talk about “uptime” in their sales pitches. Simply put, uptime means the amount of time your website stays online and accessible to visitors. Think of it like keeping your physical shop open – if your website goes down (downtime), you’re effectively closing your doors to customers.

Many hosting providers promise 99.9% uptime, which sounds impressive. But let’s break down what that really means for your business. A 99.9% uptime still allows for about 8.8 hours of downtime per year. If those hours hit during your peak sales times, you could lose significant business. Even worse, a 99% uptime means your site could be down for almost 88 hours annually – that’s like closing your shop for almost four days straight. You can check your (potential) host’s uptime guarantees or claims and use this handy hosting uptime calculator to work out what that may mean in practice.

Good hosting providers monitor their servers around the clock and jump on problems before they affect your site. They’ll have backup systems ready to kick in if something fails, keeping your website running smoothly. When you’re comparing hosting companies, ask about their actual uptime records, not just their promises. Some providers even offer money-back guarantees if they don’t meet their uptime commitments.

Keeping your site secure

Security matters more than ever for UK businesses. The UK GDPR requires you to protect customer data, and Google considers security when ranking websites. Your hosting provider should offer robust security features like firewalls and malware protection. SSL certificates come standard with most hosting packages now – they encrypt data traveling between your site and its visitors, showing customers they can trust you.

Green hosting is increasingly popular

More UK businesses now choose environmentally conscious hosting providers. These companies power their servers with renewable energy, helping reduce your website’s carbon footprint. The Green Web Foundation can help you find sustainable hosting options. You might pay slightly more for green hosting, but it shows customers you care about the environment and matches the values of eco-conscious consumers.

Choosing your web host

Your perfect hosting solution depends on what your business needs right now – and what it might need in the future. A simple business website with moderate traffic can thrive on shared hosting. But if you’re planning significant growth, handling sensitive customer data, or running a busy online shop, you might want to start with dedicated hosting or plan to upgrade soon.

Remember to monitor your site’s performance over time. As your business grows, your hosting needs will likely change. Don’t be afraid to switch providers if your current host isn’t keeping up with your business’s evolution.

Keep checking your site’s speed using tools like Google’s PageSpeed Insights. Watch your traffic patterns and note any slowdowns. Pay attention to your storage space and bandwidth usage. These metrics help you decide when it’s time to upgrade your hosting.

The hosting provider you choose creates the foundation for your online presence. Take time to research different providers, read reviews from other UK businesses, and ask detailed questions about their services. Your website represents your business online – make sure it has the strong foundation it needs to succeed.

The post Web Hosting for Small Business – UK Guide 2025 appeared first on Compare Business Bills.

Here are our tips, and advice from some UK experts in prizes as promotional tools.

Some prize promotion tips we sourced from our experts:

Make sure you understand the advertising regulations in the UK relating to prize promotions (the CAP code is what you need).

Ensure terms and conditions are clear, contain all necessary information, and are accessible from wherever you access the promotion.

Try and choose prizes that will specifically appeal to your target audience – generic prizes like cash or electronics can appeal to anyone, and anyone can potentially enter. For example: if you’re a fishing shop running a prize promotion, offering angling gear means you’re more likely to attract fishing enthusiasts.

Think carefully about what you want to do with your entrants. Are you looking to market to them? If so, how? What information would you like from them. Do you want to qualify who can enter – i.e. only allow specific people?

Prize draws and competitions are different things, a prize draw is a random selection of a winner, a competition is the selection of a winner based on skill or merit (i.e. a high score, or the selection of a panel of judges). Different mechanics work better for different campaigns, competitions clearly involving more effort from the entrant. Think about quality vs quantity.

If you are looking to run a purchase necessary promotion (i.e. the entrant buys a promotional item), consider how the entrant will redeem or register their entry. Will it be automatic (e.g. from website purchases in a given promotional period), will there be a barcode scanned, or an SMS sent, or a receipt uploaded? There are both high tech and low tech solutions available.

We asked our experts for one tip each

Iain from The Competition Agency:

If I could offer one tip it would be to differentiate and give your entrants a different experience. It’s fairly uncontroversial to say, but so many businesses just look to what everyone else is doing – which is usually a fairly low effort entry requirement for a commonly found prize. Think carefully about what you can do to make your prize promotion actually interesting to the entrant – a treasure hunt, an interactive game, mixing offline and online – all of these things stand out a mile against a retweet and win prize draw on Twitter. And the best thing is: the more effort you put into making a campaign actually fun, the less you need to give away in prizes.

Jo from Contest PR:

We find a lot of B2C clients are hesitant to tie a prize draw to a purchase. In the UK this is perfectly allowable to do (providing you tick a few fairly simple compliance boxes) and can be really effective. Providing your promotional item is the same price as it usually is, there’s really little downside, and if you’re an FMCG business, you really should be using prize promotions to gain leverage in retail, both on the shelf and with retailers themselves.

If you’re looking for some examples of interesting prize promotion ideas, Contest PR has a run down of their favourite 25 campaigns – you will likely recognise a few.

The post Running a Prize Draw or Competition for your UK Business – Beginners Guide 2025 appeared first on Compare Business Bills.

If you’re looking for more guides, be sure to check our beginners guide to payroll and beginners guide to business insurance.

Employment Rights Act 1996 and Equality Act 2010

UK employment law builds on several foundational statutes. The Employment Rights Act 1996 (ERA) shapes the basic relationship between employers and their staff – everything from written employment terms to protection against unfair dismissal. The Equality Act 2010 builds on this foundation by outlawing workplace discrimination across nine protected characteristics. You’ll need to know both backward and forward as a small business owner.

These laws don’t exist in isolation. Courts interpret and apply them through case law, creating a living body of precedent that shapes how we understand employment rights. The system evolves constantly – take the Worker Protection Act that came into force in late 2024, requiring employers to actively prevent sexual harassment rather than just react to incidents.

Working Time Regulations 1998: hours, rest periods and working patterns

The Working Time Regulations tell us exactly what we can and can’t ask of employees. No one should work more than 48 hours weekly without signing an opt-out agreement. Night workers face tighter restrictions, averaging no more than eight hours per 24-hour period. Your team needs proper breaks too: 11 consecutive hours daily, one full day weekly, and 20 minutes during longer shifts.

Young workers get extra protection – no night work between 10 PM and 6 AM, for instance. But don’t fall into the trap of treating all staff the same way. Different roles might need different approaches within these legal boundaries. A delivery driver’s rest breaks will look very different from an office worker’s, but both need their legal minimums.

National Minimum Wage Act 1998 and Employment Rights Act

The National Living Wage sits at £11.44 per hour for workers 21 and over. Workers aged 18-20 receive £8.60, while those under 18 but over school age get £6.40. These rates matter – underpaying even by accident can trigger investigations and penalties.

You can’t make deductions from wages unless: your employment contract specifically allows it, you have written consent, or it’s for things like tax and National Insurance. Even then, you need clear records showing what you’ve deducted and why. Tips? Those belong to your workers now – the law banned employer tip retention in 2024.

Employment Rights Act Section 1: written particulars and contract requirements

Every single employee needs a written statement of terms from day one. This document lays out the basics: who’s employing whom, when they start, what they’ll do, where they’ll work, what you’ll pay them, and when they can take holidays. But don’t confuse this with the full employment contract – think of the statement as the minimum legal requirement, while the contract can include additional terms that benefit both sides.

Employment Act 2002 & Working Time (Amendment) Regulations 2024: flexible working rights

The law transformed flexible working from perk to right in 2024. Employees can now make two flexible working requests yearly without explaining how it might affect the workplace. This covers everything from adjusted hours to remote work. You’ll need valid business reasons to refuse these requests – “we’ve always done it this way” won’t cut it anymore.

Pregnant workers gained stronger protections too. Redundancy protection now stretches from pregnancy disclosure through to 18 months after birth. This matches the protection level previously reserved for those on maternity leave.

Health & Safety at Work Act 1974: workplace safety requirements

Business owners need to grasp the Health & Safety at Work Act’s fundamental principle: you bear primary responsibility for workplace safety. This stretches beyond just avoiding accidents – you need a comprehensive health and safety policy, regular risk assessments, and proper training for all staff. The law expects you to provide adequate facilities, maintain equipment, and ensure safe working practices. Make no mistake, this applies even if you run a small office – the risks might differ from a factory floor, but they still exist.

Trade Union and Labour Relations (Consolidation) Act 1992: employee representation rights

Even small businesses need to understand trade union rights. Your employees can join unions, engage in collective bargaining, and participate in industrial action. You can’t discriminate against workers for union membership or activities. The law protects their right to discuss workplace issues collectively. Modern union relationships often focus on constructive dialogue – many small businesses find unions help them spot and solve problems early.

Employment Status Under ERA 1996 & IR35 Regulations: contractor vs employee classification

Getting employment status wrong can cost you dearly. The law recognizes clear differences between employees and contractors. Employees work under your control, typically exclusively for you, receiving statutory rights like minimum wage and holiday pay. Contractors maintain independence, working under a contract for services. But here’s the tricky part – calling someone a contractor doesn’t make it so. Courts look at the reality of working relationships, considering control levels, integration into your business, and who bears financial risk.

Data Protection Act 2018 & UK GDPR: employee data management

Managing employee data brings serious responsibilities. You must process personal information fairly and lawfully, telling staff exactly how you’ll use their data. Keep it secure, don’t hold it longer than necessary, and respect subject access requests. Employee monitoring? Tread carefully – you need clear policies and genuine business reasons. Remote working has complicated this further – make sure your data protection measures extend to home offices.

Equality Act 2010: protected characteristics and discrimination prevention

The Equality Act demands more than just avoiding obvious discrimination. You need to actively prevent discrimination across nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. This affects everything from hiring to promotion, training to termination. Consider reasonable adjustments for disabled workers, and watch out for indirect discrimination – policies that seem neutral but disadvantage particular groups.

Worker Protection Act 2024: sexual harassment prevention

The law now requires proactive steps to prevent sexual harassment. You can’t just wait for complaints – you need clear policies, regular training, and active measures to create a respectful workplace culture. Document your prevention efforts – if harassment occurs despite them, you’ll need to prove you took reasonable preventive steps.

Employment Rights Act: performance management and capability procedures

Managing performance requires careful documentation and fair processes. Start with clear job descriptions and performance standards. Regular appraisals should track progress and concerns. When problems arise, follow a structured improvement process – verbal warnings, written warnings, and ultimately dismissal if necessary. But remember – capability differs from conduct. If someone can’t do their job despite trying, they need support and training before any disciplinary action.

Maternity and parental rights under Employment Rights Act 1996 & Work and Families Act 2006

New parents have robust legal protections. Pregnant employees need time off for antenatal care, with full pay during appointments. Maternity leave stretches up to 52 weeks, with the first six weeks paid at 90% of average earnings, then statutory maternity pay for 33 weeks. The 2024 amendments expanded redundancy protection – it now runs from when an employee discloses pregnancy until 18 months after birth.

Fathers and partners get their share too. They can take two weeks of paternity leave, plus shared parental leave if they want to split childcare with their partner. The introduction of neonatal care leave in 2024 added extra support for parents whose babies need hospital care after birth.

Statutory carers’ rights under Work and Families Act & Employment Rights Act

Caring responsibilities gained stronger recognition in 2024. The law now gives employees day-one rights to take statutory carer’s leave – up to one week of unpaid leave annually to care for dependents with long-term needs. This sits alongside existing emergency dependents leave for sudden crises. You’ll need clear processes to handle these requests fairly.

Working Time (Predictable Terms and Conditions) Act 2024: scheduling rights

Zero-hour contracts and variable schedules faced major changes. Workers can now request more predictable working patterns, and you’ll need solid business reasons to refuse. This affects everyone from casual staff to those on fixed-term contracts under a year. Think carefully about work patterns – could you offer more stability without harming your business?

National Minimum Wage (Amendment) Regulations: tips and service charges

The rules around tips changed dramatically. You can’t keep any portion of tips or service charges – they belong entirely to your workers. You need a written policy explaining how you distribute tips fairly. Cash tips go straight to workers, while card tips and service charges need clear allocation systems.

Employment Rights Act: holiday pay and leave entitlement

Holiday calculations got clearer for irregular workers. From April 2024, you can use the 12.07% accrual method for rolled-up holiday pay. Regular workers still get 5.6 weeks paid annual leave minimum. Watch those bank holidays – they count toward the minimum if you require employees to take them as leave.

This pulled everything into clearer focus around time off. When someone works varying hours, you can now calculate their holiday pay based on an average of what they earned in the previous 52 weeks. Makes life easier than the old system, where you had to puzzle through complex calculations for occasional overtime.

ACAS Code of Practice: discipline and grievance procedures

The ACAS Code sets out clear steps for handling workplace problems. You’ll need written procedures for both discipline and grievances, and you should follow them consistently. Start with informal conversations where possible – sometimes a quick chat resolves issues before they escalate. When things get formal, invite employees to meetings in writing, giving them time to prepare and the right to bring a companion.

Document everything. Keep detailed notes of meetings, send follow-up letters confirming what you discussed and decided. If you end up at a tribunal, they’ll want to see you followed fair procedures. They can increase compensation by up to 25% if you didn’t follow the ACAS Code.

Transfer of Undertakings (Protection of Employment) Regulations 2006: TUPE rights

TUPE protects employees when a business changes hands or service contracts transfer. The new employer takes on all existing employment contracts, including length of service and terms and conditions. You can’t just change these terms because of the transfer – you need a solid business reason unrelated to the transfer itself.

Let’s talk about information and consultation. You must tell affected employees about the transfer, when it’s happening, and how it affects them. Get this wrong and you could face expensive claims. Smart employers start planning their TUPE compliance early – it’s not something you want to figure out at the last minute.

Pensions Act 2008: auto-enrolment/workplace pension requirements

Auto-enrolment changed the pensions game completely. Every employer must enroll eligible workers into a pension scheme and make minimum contributions. The rules kick in as soon as you hire your first employee who meets the age and earnings criteria. You can’t encourage workers to opt out – that’s against the law.

The minimum contribution rates stand at 8% of qualifying earnings, with employers paying at least 3%. Some employers choose to pay more to attract and keep good staff. You’ll need to keep records showing you’ve met your duties and re-enrol eligible workers every three years.

Health and Safety (Display Screen Equipment) Regulations 1992

Modern work means screens, lots of them. These regulations demand you assess workstations, provide proper equipment, and give workers breaks from screen work. Remote work hasn’t changed these obligations – you’re still responsible for home workstations.

Monitor usage patterns, encourage regular breaks, and respond promptly to any health concerns. Eye tests? If employees use display screens regularly, you’ll need to pay for them. Same goes for basic spectacles if they’re needed specifically for screen work.

Equality Act 2010: equality and diversity

You need solid equality and diversity policies – they protect both you and your staff. Write them in plain English and make them practical. Tell people exactly what behaviours you expect and what counts as discrimination or harassment. Then back it up with regular training. Make sure managers know how to spot problems early and handle them properly.

Think about recruitment too. Your job ads should focus on skills and experience, not personal characteristics. Watch out for unconscious bias in interviews. Some companies use blind recruitment – removing names and other identifying details from applications before shortlisting. It helps you focus on what really matters: can this person do the job?

Modern Slavery Act 2015: supply chain due diligence

Even small businesses need to think about modern slavery, especially if you’re part of larger supply chains. Big companies will ask about your anti-slavery measures. You’ll want to check your own suppliers too – could any of them be using forced labor? Document your checks and keep policies updated.

Take a look at your recruitment processes. Using agencies? Make sure they’re reputable and check their practices. Keep clear records of right-to-work checks. If something doesn’t feel right, investigate. Better to ask awkward questions than risk involvement in exploitation.

Public Interest Disclosure Act 1998: whistleblowing protection

Your staff need to know they can raise serious concerns safely. Create clear whistleblowing procedures – who should they talk to? What happens next? Protect whistleblowers from retaliation. Keep their identity confidential where possible.

Good whistleblowing policies encourage people to speak up early, before problems get serious. Make sure senior staff take concerns seriously and investigate properly. Document everything – you might need to prove you handled things fairly.

Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002

Fixed-term staff deserve equal treatment with permanent employees. Give them the same access to benefits, training, and promotion opportunities. After four years of continuous fixed-term contracts, they automatically become permanent unless you’ve got a really good reason why not.

Keep track of contract renewals. Tell fixed-term staff about permanent vacancies. If you’re not renewing someone’s contract, give them proper notice and a written explanation. Treat ending fixed-term contracts like any other dismissal – follow fair procedures.

Management of Health and Safety at Work Regulations 1999

You need to spot workplace dangers before they cause harm. Walk around your workplace regularly – look for obvious hazards like trailing cables or blocked fire exits. Talk to your staff – they often notice problems you might miss. Think about less obvious risks too, like stress or repetitive strain injuries.

Write down what you find and what you’ll do about it. Make these records clear and practical. When something changes – new equipment, new processes, new premises – check if you need to update your assessments. Remember, risk assessment isn’t a one-time thing. Keep checking your safety measures work.

Information and Consultation of Employees Regulations 2004

Your staff have the right to know about changes that affect them. Changes to contracts, restructures, new working methods – tell people early and give them chance to respond. Sometimes you’ll need formal consultation processes. But even when you don’t, keeping people informed helps avoid misunderstandings and builds trust.

Set up good communication channels. Regular team meetings, one-to-ones, staff newsletters – use whatever works for your business. Just make sure information flows both ways. Listen to what your staff tell you – they often have great ideas for improving things.

Computer Misuse Act 1990 & Investigatory Powers Act 2016

Technology brings new workplace challenges. Create clear IT policies – what can staff use work computers for? Can they send personal emails? What websites can they visit? Tell people if you monitor their computer use. Make sure they understand data security – strong passwords, encrypted files, careful email use.

Social media needs special attention. Set boundaries around what staff can say about work online. Help them understand how careless posts could harm the business – or their careers. But remember, you can’t control everything they do online. Focus on protecting confidential information and maintaining professional standards.

Agency Workers Regulations 2010

Treat your agency workers fairly. After 12 weeks, they get the same basic working conditions as your permanent staff – pay, hours, breaks, holiday. Keep track of how long they’ve worked for you – that 12-week qualifying period can include breaks, so check the rules carefully.

Tell your permanent staff about agency vacancies. Give agency workers access to your facilities – canteen, car parking, childcare if you provide it. You don’t have to give them all company benefits, but their basic working conditions should match your permanent staff.

Health and Safety (Home Work Places) Regulations 2023: managing remote workers

Remote work brings the workplace into people’s homes. You need a way to check home workstations meet health and safety standards. Send your staff a self-assessment checklist. Get them to photograph their setup. Make sure they have proper chairs, adequate lighting, and enough space to work safely.

The display screen equipment rules still apply. Your staff need proper breaks from screen work. Help them set up their equipment correctly. Pay for eye tests if they need them. Think about mental health too – working alone can be isolating. Set up regular check-ins and encourage people to stay connected with colleagues.

Workplace investigations under ACAS Guidelines

When something goes wrong, you’ll need to investigate. Get your facts straight before making any decisions. Talk to everyone involved. Gather evidence – emails, documents, CCTV if you have it. Keep notes of every conversation. Stay neutral – don’t jump to conclusions before you’ve heard all sides.

Give people a fair chance to explain. Let them bring someone to support them in meetings. Keep things confidential – office gossip can make situations much worse. Move quickly but thoroughly. Long investigations stress everyone out.

Environment Bill 2023: workplace environmental standards

Climate change affects how we work. You’ll need policies about energy use, waste reduction, recycling. Think about your carbon footprint – can you cut down on business travel? Use less paper? Switch to energy-efficient equipment?

Help your staff understand why environmental measures matter. Make it easy for them to do the right thing. Put recycling bins where people need them. Set up good video conferencing so they don’t need to travel so much. Small changes add up.

The post UK Employment Laws and Regulations – Small Business HR Guide 2025 appeared first on Compare Business Bills.

NB: If you’re thinking of doing it yourself, check out our guide to the best UK payroll software and be sure to peruse our handy beginners guide to UK payroll.

1. Moorepay – Best overall payroll provider

Moorepay stands at the forefront of UK payroll services, bringing over 50 years of experience to the table. Their cloud platform combines payroll and HR functions into one sleek system that makes employee data analysis feel effortless. They’ve earned CIPP’s Payroll Service Provider of the Year Award in 2023, and big names like McDonald’s and Volkswagen trust them with their payroll. Their UK-based specialists offer practical guidance on everything from basic payroll questions to complex tax matters. Small businesses particularly love their free holiday calculators that quickly figure out leave entitlements for part-time and zero-hour workers.

Advantages:

• CIPP Payroll Assurance Scheme accredited
• Strong customer support via phone and live chat
• Comprehensive HR integration
• Free holiday calculators
• Custom reporting capabilities

Limitations:

• No international payroll support
• Lacks live training sessions
• Pricing only available through quotes
• No chatbot support

2. Payescape – best for short-term Contracts

Payescape takes a different approach with their rolling monthly contracts – perfect if you’re not ready for a long-term commitment. Based in Ballymoney, Northern Ireland, they’ve built their reputation on making payroll straightforward for small businesses since 2006. Their three-ring phone answer policy means you won’t wait long for help, and they’ve packed their knowledge center with video tutorials and how-to guides. Their team all holds CIPP qualifications, so you know you’re in good hands.

Advantages:

• Flexible rolling monthly contracts
• CIPP-qualified support team
• Strong integration with accounting software
• Custom reporting options
• Comprehensive training resources

Limitations:

• No international employee payments
• Limited payroll changes reporting
• Single office location may limit access
• No face-to-face support outside NI

3. MHR – best for reporting

MHR brings serious muscle to payroll reporting with their iTrent software, winner of CIPP’s Software Product of the Year 2023. They excel at turning complex employee data into clear insights – something Microsoft Azure and Experian have noticed. Their visualization tools make presenting performance data to stakeholders a breeze. They operate from Nottingham and Glasgow, offering solid phone and chat support.

Advantages:

• Advanced reporting and analytics
• Strong data sharing capabilities
• Comprehensive compliance tools
• Award-winning iTrent platform
• Multiple UK office locations

Limitations:

• No live training sessions
• Limited compliance guidance
• Complex interface for beginners
• Pricing requires custom quotes

4. Frontier – best for international business

Frontier steps up for international businesses, handling payroll across 26 countries. With offices spread across Surrey, Warrington, Nottingham, and Gloucester, they’re within reach for many English businesses. Their mobile app lets employees submit timesheets and check payslips on the go.

Advantages:

• Handles international payroll
• Live training available
• Multiple UK locations
• Strong mobile app functionality
• CIPP PAS accredited

Limitations:

• No open API for integrations
• Limited compliance advice
• No chatbot support
• Complex implementation process

5. OneAdvanced – best for training

OneAdvanced shines in the training department. They support over 22,000 customers globally and offer various learning formats – live sessions, video tutorials, and written guides. With nine UK offices, including one near London City Airport, they’re never far away. They handle complex salary structures and multiple payroll interfaces with ease.

Advantages:

• Comprehensive training program
• CIPP-accredited expert advice
• Extensive UK office network
• Custom reporting capabilities
• Strong phone and chat support

Limitations:

• No open API
• Lacks mobile app
• No chatbot assistance
• Complex system navigation

6. ADP – best for security

ADP brings serious security credentials to the table. This industry veteran has claimed the Global Payroll Supplier of the Year award two years running and dominated the CIPP Annual Excellence Awards for four straight years. Their mobile app doubles as a clock-in system – perfect for managing rotating shifts. They maintain offices in Staines-upon-Thames and Cheadle, though pricing details remain under wraps.

Advantages:

• Strong security protocols
• Robust mobile app with clock-in
• Custom reporting features
• Tax education resources
• International capabilities

Limitations:

• Limited payroll change reporting
• No transparent pricing
• No chatbot support
• Email support not available

7. TopSource – best for native integrations

TopSource rounds out the top providers with their comprehensive service suite. From their Birmingham base, they handle everything from HMRC registration to year-end processing. Their native platforms cover HR, recruitment, and benefits management, with ready-made integrations for popular accounting software like Sage and Xero. They’ll process international payroll too, though their reporting lacks customization options.

Advantages:

• Comprehensive native software suite
• Strong compliance tools
• International payroll capability
• Ready-made accounting integrations
• ISO 27001 certified

Limitations:

• No custom reporting
• Limited training options
• Single UK office location
• No transparent pricing structure

Each provider sets their prices based on your specific needs – employee count, pay frequency, and extra features all play a part in the final quote. Most won’t publish standard rates, so you’ll need to contact them directly for accurate pricing. Small businesses might want to check out Iris Staffology, who buck this trend by advertising their prices upfront.

UK managed and outsourced payroll services FAQs

What is a managed or outsourced payroll service?

A managed payroll service takes over your company’s entire payroll operation. They’ll handle everything from processing payments and generating payslips to dealing with HMRC as your PAYE-registered agent. Think of them as your dedicated payroll department, just sitting in a different building.

How does managed payroll work?

Once you’ve partnered with a payroll provider, they’ll use their specialist software to process your payroll in line with your staff contracts. They’ll make sure everyone gets paid the right amount at the right time, handle all the paperwork, and keep you compliant with tax and employment laws. You’ll still have oversight of the process – most providers let you review everything before payments go out.

What are the benefits of outsourcing payroll?

Money and time are the big ones. You won’t need to hire in-house staff or buy expensive payroll software, and the service typically costs less than maintaining an internal team. Plus, you’ll free up time you’d otherwise spend on admin tasks. The providers also keep up with all the latest tax and employment law changes, so you don’t have to worry about accidentally missing something important.

What are the downsides of outsourcing payroll?

Some companies worry about losing control of their payroll process or sharing sensitive employee information. A good provider will address these concerns by letting you review everything before it’s finalized and showing you their information security certifications (look for ISO27001). You’ll also want to check if their systems can work smoothly with your existing HR and finance software.

How do pensions (workplace, auto-enrolment) work with managed payroll?

Your payroll provider will typically handle all the pension-related admin, including auto-enrolment requirements. They’ll figure out which workers are eligible, calculate the right contributions, and either give you reports for your pension scheme or upload them directly to the relevant pension portals.

How much does managed or outsourced payroll cost?

Most UK providers charge per payslip rather than a flat fee. This means your costs scale with your business size, which often works out cheaper than maintaining an in-house team. You’re not just paying for processing – you’re also getting protection against compliance penalties, which can be expensive if you make mistakes handling payroll internally.

Is outsourced payroll mainly for big companies, or do small businesses use it too?

Companies of all sizes use managed payroll services. There’s no minimum or maximum number of employees required. Whether you have five employees or five thousand, you can benefit from the time savings and expertise these services provide. In fact, smaller companies often find it especially helpful since they might not have the resources to maintain a dedicated payroll department.

The post Top UK Managed and Outsourced Payroll Services Companies – 2025 Guide appeared first on Compare Business Bills.

If you’re new to payroll, see our beginner’s guide to small business payroll.

If you’re looking to outsource your payroll, check out our recommendations for managed payroll providers.

1. BrightPay

BrightPay serves small to medium UK businesses with a straightforward interface and solid HMRC compliance features. The platform handles everything from basic payroll to auto-enrollment pension schemes.

Advantages:

• Clean interface with minimal training needed
• Comprehensive HMRC compliance features
• Competitive pricing for small businesses
• Strong pension auto-enrollment support

Limitations:

• Limited international operations capabilities
• Basic reporting features
• Mobile app needs improvement

2. Sage

Sage excels through its deep accounting integration and makes payroll management feel natural for existing Sage users. The platform offers robust reporting capabilities and stays current with UK tax requirements.

Advantages:

• Seamless accounting integration
• Powerful customizable reporting
• Strong UK tax compliance tools
• Grows with your business

Limitations:

• Takes time to learn the system
• Higher costs for small businesses
• Complex interface for basic users

3. QuickBooks Payroll

QuickBooks Payroll brings automation and accounting integration together. The software handles tax calculations and payroll runs smoothly, though you’ll pay extra for some advanced features.

Advantages:

• Strong QuickBooks integration
• Automated tax calculations
• User-friendly dashboard
• Real-time payroll processing

Limitations:

• Premium features cost extra
• Basic standalone payroll features
• Inconsistent customer support

4. Xero Payroll

Xero combines accounting and payroll in one platform, offering real-time insights into your business finances.

Advantages:

• Real-time financial data
• Smooth accounting integration
• Simple employee self-service
• Regular UK tax updates

Limitations:

• Limited payroll features compared to specialists
• Complex pay structures can be difficult to set up
• Basic reporting options

5. FreeAgent

FreeAgent targets freelancers and small businesses with straightforward payroll management alongside VAT and self-assessment tools.

Advantages:

• Perfect for small businesses
• Built-in UK tax compliance
• Clear, simple interface
• Fair pricing structure

Limitations:

• Limited features for larger companies
• Basic customization options
• Simple reporting tools

6. Gusto

Gusto combines payroll and HR features in a modern, user-friendly package.

Advantages:

• Clean, intuitive interface
• Strong benefits management
• Excellent customer support
• Comprehensive HR tools

Limitations:

• Expensive for small teams
• Some UK features lag behind US version
• Additional costs for advanced features

7. ADP Workforce Now

ADP targets medium to large businesses with powerful features and deep customization options.

Advantages:

• Extensive customization capabilities
• Strong compliance management
• Advanced reporting tools
• Handles complex organizations well

Limitations:

• Overwhelming for small businesses
• Steep learning curve
• Premium pricing

8. Paychex Flex

Paychex Flex offers flexible payroll options with strong mobile support for businesses of all sizes.

Advantages:

• Mobile-friendly design
• Flexible payment options
• Good scalability
• Strong compliance tools

Limitations:

• Complex interface
• Variable customer support
• Higher pricing tiers

9. Rippling

Rippling integrates payroll, IT, and finance tools in one platform, with strong support for international teams.

Advantages:

• Unified platform approach
• Strong IT integration
• Global payroll support
• Automated workflows

Limitations:

• More features than small businesses need
• Premium pricing
• Complex setup process

10. OnPay

OnPay keeps things simple with straightforward pricing and solid automation features.

Advantages:

• Clear pricing structure
• Automated tax filing
• Good customer support
• Easy setup process

Limitations:

• Basic features only
• Limited customization
• Simple reporting tools

11. Paycor

Paycor transforms payroll data into actionable insights. Their reporting tools help businesses make smarter decisions about their workforce spending.

Advantages:

• Comprehensive analytics dashboard
• Easy-to-generate custom reports
• Strong compliance monitoring
• Built-in time tracking features

Limitations:

• High cost for small teams
• Complex feature set can overwhelm
• Time-consuming implementation

12. Wave Payroll

Wave Payroll keeps things affordable while delivering reliable payroll processing and clean accounting integration.

Advantages:

• Budget-friendly pricing
• Clear accounting integration
• Straightforward setup
• No hidden fees

Limitations:

• Basic feature set
• Limited customization options
• Minimal HR tools

13. Deel

Deel tackles international payroll challenges head-on, making global team management smoother.

Advantages:

• Multi-country compliance built-in
• Handles international payments efficiently
• Strong contractor management
• Built-in legal compliance

Limitations:

• Higher costs for small teams
• Focused solely on global/remote teams
• Complex pricing structure

14. Remote Payroll

Remote Payroll specializes in managing distributed teams across borders with solid compliance features.

Advantages:

• Strong international compliance
• Local law expertise
• Easy payment distribution
• Good employee self-service

Limitations:

• Expensive for small operations
• Limited domestic-only features
• Complex setup process

15. Paylocity

Paylocity combines modern payroll features with comprehensive human capital management tools.

Advantages:

• Strong performance tracking
• Modern user interface
• Mobile-first approach
• Deep HR integration

Limitations:

• Requires significant setup time
• Higher pricing tiers
• Can feel overwhelming

16. Papaya Global

Papaya Global excels at handling multi-currency payroll across different countries.

Advantages:

• Excellent currency management
• Strong compliance tools
• Real-time payment tracking
• Built-in tax calculations

Limitations:

• Premium pricing model
• Complex implementation
• Overkill for domestic-only businesses

17. Ceridian Dayforce

Ceridian Dayforce connects workforce management with payroll processing for larger organizations.

Advantages:

• Deep workforce analytics
• Strong scheduling tools
• Real-time calculations
• Comprehensive reporting

Limitations:

• Significant implementation time
• High costs
• Complex system architecture

18. Zoho Payroll

Zoho Payroll delivers straightforward payroll management with solid Zoho product integration.

Advantages:

• Affordable pricing tiers
• Clean Zoho integration
• User-friendly interface
• Automated calculations

Limitations:

• Basic feature set
• Limited third-party integrations
• Simple reporting tools

19. SurePayroll

SurePayroll focuses on flexible payroll options backed by reliable customer support.

Advantages:

• Multiple payment schedules
• Strong mobile access
• Good customer service
• Easy tax filing

Limitations:

• Basic HR features
• Limited customization
• Simple reporting options

20. BambooHR

BambooHR emphasizes employee experience while handling core payroll functions through integrations.

Advantages:

• Strong employee focus
• Good performance tracking
• Clean user interface
• Solid HR tools

Limitations:

• Relies on third-party payroll
• Higher costs
• Limited payroll features

Don’t forget to take advantage of free trials to test the features that matter most to your operation. Never assume that the cheapest option is the most cost-effective in the long run – factor in the time your team will spend learning and using the system.

HMRC recognised free payroll software

Yes, there are a number of free options (including HMRC’s free payroll tool) for use up to 10 employees.

HMRC recognised paid payroll software

The following are all the paid options for UK payroll that are officially recognised by HMRC.

Things to consider when choosing payroll platform or software

Is the payroll software easy to use?

Start by checking how user-friendly the software feels. You want your payroll team to move through the system without getting lost in complex menus or spending ages hunting for basic functions. Think of it like a well-organised kitchen – everything should be right where you expect it.

Can employees change or update their details themselves on the payroll platform?

Employee self-service makes a big difference. Your staff should be able to update their own bank details and access their pay information. This keeps your HR team from getting bogged down with simple requests, letting them focus on more important work.

Can the payroll platform scale with your business?

Think about your company’s future when choosing software. You need a system that can handle your current team and grow alongside your business. A system that works perfectly for 50 employees might struggle with 500, so plan ahead.

How sophisticated is the payroll software? What manual tasks can it automate?

Automation is where payroll software really shines. The more tasks it can handle without human input, the better. Look for software that can automatically calculate wages, apply tax changes, and handle regular payments. Even better if it connects with your time tracking system – this creates a smooth flow from hours worked to payslips issued.

What security standards does the payroll platform have? (e.g. ISO 27001 or SOC2)

Security needs special attention. Your payroll data includes sensitive personal and financial information, so make sure any software you consider takes security seriously. Ask about encryption, access controls, and how they protect data during transfers. Ask about information security standards like ISO 207001 and/or SOC2.

Cloud hosted vs self hosted payroll software

Consider whether cloud-based or self-hosted software suits your needs. This often depends on your IT setup and expertise. Cloud systems offer easier access and automatic updates, while self-hosted solutions give you more control over your data.

What are the payroll reporting features?

The software should make it easy to analyse your payroll data and create reports. You want clear dashboards and simple ways to extract information for both government requirements and internal planning. Good reporting helps you spot trends and make better decisions about your workforce costs.

How customisable is the platform?

Look for customisation options. Every business handles payroll slightly differently, so you need software that adapts to your specific needs rather than forcing you to change your processes to fit the software.

What is the level of customer support?

Finally, check out the customer support. Problems with payroll can cause serious headaches for everyone involved, so you want responsive support that can help solve issues quickly. Ask about support hours, response times, and how they handle urgent problems.

What can payment software do for my business?

Great payroll software should handle these key tasks for you:

• Calculate and process everyone’s pay automatically, handling different pay rates and schedules for your whole team
• Keep up with tax regulations and automatically apply the latest rates and rules for things like income tax and benefits
• Connect with HMRC to report your payroll data and stay compliant with filing requirements
• Give employees secure access to view their pay history and download their own payslips
• Track and manage employee benefits, including pension contributions and health insurance deductions
• Process expense reimbursements and handle special payments like bonuses or commissions
• Create detailed reports showing your labour costs, tax payments, and other payroll metrics
• Integrate with your accounting software to keep your books accurate and up-to-date
• Store all your payroll records securely and maintain an audit trail of changes
• Manage time off and leave balances, including vacation time and sick days
• Handle multiple pay frequencies if you have both weekly and monthly paid staff
• Calculate overtime pay and shift differentials automatically based on your rules
• Keep track of salary history and pay changes over time for each employee
• Support direct deposit payments and generate payment files for your bank

The post Top 20 UK Payroll Software Platforms – 2025 Guide appeared first on Compare Business Bills.

Gerald Ratner and jewellery that was cheaper than an M&S prawn sandwich

Some people can do everything right and need only one mistake to bring everything down. Take Gerald Ratner – he destroyed his entire jewellery empire in 1991 with one speech. In only a few short years, Gerald Ratner had made The Ratners Group into one of the most valuable and fastest growing companies in the UK, with a peak valuation in 1990 of £840 million. Only one year later, standing in front of the Institute of Directors, he called his own products “total crap” and joked that his earrings were “cheaper than an M&S prawn sandwich but probably wouldn’t last as long”, presumably in a misguided attempt at self deprecation. The next day, his company lost £500 million in value. Just like that. The gaffe was so infamous that “doing a Ratner” is still common parlance for a grievous foot in mouth moment. Soon after, The Ratners Group almost collapsed (surviving as the Signet Group). You can watch the toe curling video below, where Gerald destroys half a billion pounds of value in just a couple of minutes:

Marks and Spencer try to crack America

Marks & Spencer tried to crack America in the 1980s. They waltzed in thinking everyone would love their very British ways. They didn’t. Americans found the sizes confusing, hated the British style clothing, and couldn’t understand why a store would sell both underwear and sandwiches. M&S lost nearly $1 billion before admitting defeat.

Royal Bank of Scotland and Fred the Shred

Speaking of absolute disasters, remember when RBS bought ABN AMRO in 2007? They paid £49 billion right before the financial crisis hit. Oops. They didn’t check the books properly and ended up buying a bank stuffed full of toxic assets. The British government had to step in with the biggest bank bailout in history. The CEO still got his pension though, so that’s nice.

Hoover and free flights to America

Hoover made a mind-boggling decision in 1992. They offered free flights to America for anyone spending £100 on their products. The flights were worth way more than the vacuum cleaners. People bought vacuums they didn’t need just to get the tickets. Hoover lost £50 million and their entire European division got sold off. Marketing genius!

Northern Rock collapse

Remember Northern Rock? In 2007 they thought they’d found a brilliant new way to make money – borrowing short-term cash to fund long-term mortgages. When the credit crunch hit, everything fell apart. People queued for blocks to pull their money out. It became the first British bank run in 150 years. The government nationalised it, and taxpayers picked up the bill.

Tesco tries to crack America

Let’s talk about Tesco’s American dream. Fresh & Easy was supposed to revolutionize American shopping. They spent billions setting up stores that Americans just didn’t want to visit. The self-checkouts confused people, the portions were too small, and Americans found the stores cold and clinical. After losing £2 billion, Tesco gave up in 2013.

Cadbury makes their chocolate cheaper (and everyone hates it)

The British chocolate company Cadbury tried to be clever in 2009. They changed the recipe of their Creme Eggs from dairy milk chocolate to a cheaper alternative. People noticed. They really noticed. Sales dropped by £6 million in just a few months. When Kraft (now Mondelez) bought Cadbury, they stuck with the cheaper recipe. People still complain about it.

British Airways terminal 5 launch

British Airways had a complete nightmare in 2008 when they opened Terminal 5 at Heathrow. They’d spent £4.3 billion on it, but on opening day the baggage system collapsed. They cancelled 500 flights and lost 23,000 bags. The chaos lasted for weeks. But hey, at least the building looked nice.

HMV thought mp3s were a fad

Bonkers decisions? How about when HMV ignored online music in the 2000s. Their CEO said digital downloads were just a fad. Amazon and iTunes ate their lunch. They went from 400 stores to virtually nothing. They still exist (via various rescues), and have even regained their flagship store on Oxford Street, but they’re a shadow of their former selves.

Companies House killed a business with a typo (and got sued for it)

The prize for most expensive typo goes to Companies House. In 2009, they accidentally listed Taylor & Sons Ltd as going into administration instead of Taylor & Son Ltd. The extra ‘s’ killed the wrong company. The 124-year-old business lost all its contracts overnight. They sued Companies House and won £9 million in damages.

Barclays and the LIBOR scandal

Barclays tried to be smart in 2012. They figured they could manipulate LIBOR rates (the rates banks use to lend to each other) to make more money. They got caught. The fine? £290 million. Their CEO lost his job, their reputation got trashed, and they’re still dealing with the fallout.

British Leyland and the Austin Allegro

Remember when British Leyland thought they could take on the Germans in the car market? They made the Austin Allegro – a car so badly designed that its square steering wheel would sometimes fall off. The windows would pop out if you jacked up the car. They managed to make a car that literally broke itself.

The death of Thomas Cook

More recently, Thomas Cook collapsed in 2019 after 178 years in business. They needed £200 million to survive but couldn’t get it. They stranded 150,000 holidaymakers abroad and lost 21,000 jobs. They’d stuck to the same old package holiday model while the world switched to booking flights and hotels online.

Pick ‘n’ mix couldn’t save Woolworths

And who could forget Woolworths? They watched as pound shops took their cheap items market, supermarkets took their pick ‘n’ mix, and Amazon took everything else. They just kept doing the same thing until they went bust in 2008. Nine decades of British retail history gone because they couldn’t work out what they were supposed to be selling. Occasionally, rumours surface that Woolworths will return to the high street, though these are always some joker pranking a nostalgic (and somewhat gullible) public.

The post The Biggest British Business Mistakes and Disasters appeared first on Compare Business Bills.

Forget 2p coins, we used to be able to pay our taxes in eels

So tax does have to be taxing, but it doesn’t have to be… boring? Just ask the medieval British who paid their taxes in eels. Yes, you read that right – eels. During the Middle Ages, landlords would collect rent in the form of eels because they were such a popular food. The city of Cambridge alone used to pay 45,000 eels a year to the King. It somewhat puts protest payments in 2p coins into context.

The beard tax of 1535

But it gets weirder. Tudor England had a tax on beards. Henry VIII decided that facial hair should come with a price tag, and the amount you paid depended on your social status. Elizabeth I later continued this bizarre tradition, making people pay for the privilege of growing a beard. The tax collectors would actually walk around touching people’s faces to check if they needed to pay up. Talk about hands-on government work.

The window tax of 1696

Windows caused quite a stir too. The Window Tax of 1696 made people pay based on how many windows their house had. What did everyone do? They bricked up their windows, of course! You can still spot these blocked-up windows in old buildings all over Britain today. The tax lasted until 1851, and we got the phrase “daylight robbery” from this peculiar tax.

The hat tax of 1785

Think that’s odd? In 1785, Britain started taxing hats. Every hat needed a stamp inside it to prove the tax had been paid. Hat sellers who didn’t comply faced the death penalty – a bit extreme for dodging hat tax, wouldn’t you say? The tax inspectors would raid shops looking for unstamped hats. This led to a booming trade in hat-shaped non-hats that people would claim weren’t technically hats at all.

TV licenses charged more for colour until 2020

Let’s jump to something more recent – Britain actually had a tax on TV colours until 2020. If you owned a colour TV, you paid more than someone with a black and white set. People still owned black and white TVs just to save on the license fee – in 2019, over 6,000 homes still had black and white licenses! They finally scrapped this colour premium, but the TV license itself lives on.

The playing card tax of 1711

Have you heard about the playing card tax? From 1711, every pack of cards needed a special stamp on the ace of spades to show the tax had been paid. This tax lasted over 200 years! The government kept such tight control that only one company could print the ace of spades. People started forging them, leading to a thriving underground card game scene.

The pasty tax

Modern Britain hasn’t lost its touch for weird taxes. Take the “pasty tax” controversy of 2012. The government tried to add VAT to hot takeaway food, but this created the bizarre situation where the temperature of your pasty determined how much tax you paid. If your pasty was hot, you paid more tax. If it had cooled down, you paid less. Bakers actually started letting pasties cool just to save their customers money.

VAT on food

Speaking of food, Britain taxes some really strange combinations. A gingerbread man with chocolate eyes? Standard VAT rate. But if it has chocolate buttons? Zero-rated! Frozen yogurt? Taxed. But frozen yogurt with raisins or nuts in it? No tax! These distinctions keep tax accountants scratching their heads to this day.

Is a Jaffa Cake a biscuit or a cake? (Because it’ll determine the VAT)

Here’s a modern head-scratcher: you pay no VAT on a plain biscuit, but add chocolate to it and suddenly it’s a luxury item with 20% VAT. But what about Jaffa Cakes? McVities went to court to prove Jaffa Cakes were cakes (zero-rated) not biscuits with chocolate (standard-rated). They even baked a giant Jaffa Cake to prove their point. The key evidence? Cakes go hard when stale, while biscuits go soft. Jaffa Cakes go hard, so they won the case!

Noisier helicopters = more tax

And don’t get me started on helicopter taxes. If you land your helicopter in London, the amount of tax you pay depends on how noisy your helicopter is. They actually have people measuring helicopter noise levels to work out the tax bill. The quieter your chopper, the less you pay.

More heads on your mannequin = more tax

A particularly bizarre one involves mannequins. If you import a mannequin with a second head, you pay less tax than if you import the heads separately. This has led to some very strange-looking mannequins being shipped into the UK, as retailers try to game the system.

The fizzier the drink = the more tax

Britain still keeps creating new weird tax situations. Since 2018, you pay more tax for drinking fizzy drinks, but only if they’re fizzy enough. Tax inspectors literally measure the bubbles in drinks to work out how much tax to charge. Drink manufacturers started reducing sugar levels just enough to dodge the tax, creating this strange middle-ground of semi-sugary drinks.

The royal family and tax

Even the Queen wasn’t exempt from tax oddities. Until 1992, the monarch didn’t pay income tax – this was a gentlemen’s agreement rather than law. But here’s the weird part: the Queen still had to pay a tax called “Royal Assent”. This meant she technically paid tax on her own laws! She had to approve every tax law, thereby taxing herself.

Death and taxes aren’t as certain (it depends on how you’re buried)

Tax doesn’t end when you die either. If you get buried in a wool shroud instead of a regular coffin, you pay less tax. This comes from an old law meant to boost the wool trade, but it’s still on the books. Some eco-conscious Brits have started using this centuries-old tax break for green burials!

The post The UK’s Weirdest Taxes appeared first on Compare Business Bills.

Employers’ liability insurance – compulsory if you employ anyone

Before we get into the optional coverages, let’s talk about what the law requires. If you employ anyone – even if it’s just one person working part-time – you need Employers’ Liability Insurance. This covers you if an employee gets injured or becomes ill because of their work. The minimum coverage required is £5 million, though most insurers provide at least £10 million of coverage.

Think this doesn’t apply to your small operation? Think again. Your “employees” include temporary staff, students on work placements, and even volunteers. The Health and Safety Executive takes this seriously – they can fine you £2,500 for each day you operate without proper coverage.

The other non-negotiable is motor insurance if your business uses vehicles. Basic third-party coverage will protect you if your vehicles cause damage to others, but most businesses opt for comprehensive coverage. This gives you protection against fire, theft, and damage to your own vehicles too.

Business buildings and contents insurance

Your business premises and everything inside them represent a major investment. Buildings insurance covers the actual structure – from the walls and roof to built-in fixtures. But here’s something many business owners get wrong: you should insure for the rebuilding cost, not the market value. These can be very different numbers.

Contents insurance picks up where buildings coverage leaves off. It protects everything that would fall out if you turned your building upside down – inventory, equipment, furniture, and so on. When insuring stock, use the cost price rather than retail value. Remember seasonal fluctuations too – if you carry more inventory before Christmas, make sure your coverage reflects this.

Business interruption insurance

Here’s a sobering statistic: 80% of businesses that suffer a major incident fail within 18 months if they don’t have proper coverage. Business interruption insurance helps you survive when you can’t operate normally. Maybe a flood has damaged your premises, or a key piece of machinery has broken down. This coverage helps replace lost income and pays for additional expenses while you get back on your feet.

Professional indemnity and public liability insurance

If you give advice or provide professional services, Professional Indemnity Insurance guards against claims that your work caused financial losses. Solicitors, accountants, and consultants typically need this coverage, but it’s worth considering for any business that provides expertise.

Public Liability Insurance protects you if someone gets injured or their property gets damaged because of your business activities. This isn’t legally required, but it’s hard to operate without it – many clients and landlords will insist on seeing proof of coverage.

Private medical insurance for your employees

Beyond the required Employers’ Liability Insurance, you might want to consider additional protection for your employees. Private Medical Insurance can help get staff back to work quickly after illness or injury. Critical Illness coverage provides a tax-free lump sum if an employee develops a serious condition.

Some businesses also offer Life Insurance, typically paying up to four times an employee’s salary if they die while employed. This isn’t just about being generous – it helps attract and retain talented people.

Trade credit insurance and Key person insurance

Money doesn’t always flow smoothly in business. Trade Credit Insurance protects you if customers can’t pay their debts. Key Person Insurance provides financial support if someone vital to your business dies or becomes disabled. These coverages aren’t about physical assets – they’re about protecting your business’s financial health.

Getting the right coverage and the best deal – find an insurance broker

Insurance isn’t one-size-fits-all. When shopping for coverage, consider working with a broker who knows your industry. They can help tailor a package to your specific needs and often access better rates than you’d find on your own.

When you apply for coverage, you’ll need to disclose everything relevant about your business. Be thorough – hiding information or being careless with the details could invalidate your coverage when you need it most.

Most insurers will let you pay monthly rather than annually, though this usually comes with a small premium. Consider the trade-off between managing cash flow and paying a bit more overall.

Keep on top of your insurance needs and renewals. Don’t leave it to the last minute (or at all!)

Review your coverage annually, or whenever your business changes significantly. Moving premises, buying new equipment, or expanding into new activities might affect your insurance needs.

If something does go wrong, tell your insurer immediately – even if you’re not sure you’ll make a claim. They can often provide practical help beyond just paying out money. Many insurers offer 24-hour helplines and can connect you with specialists who handle disasters.

Finally, remember that managing risk goes beyond just buying insurance. Good security measures, staff training, and maintenance procedures can prevent problems and might reduce your premiums too. Your insurer can often advise on risk management – they want to help you avoid claims as much as you do.

The post UK Small Business Insurance – Beginner’s Guide 2025 appeared first on Compare Business Bills.

If you’re after payroll software, check out our guide to the best UK payroll software.

If you’re considering outsourcing your payroll to a managed payroll company, check our guide to the best payroll services companies.

Getting started with PAYE

You’ll need to set up PAYE (Pay As You Earn) before you can start paying employees. Think of PAYE as your direct line to HMRC – it’s how you’ll collect and send income tax and National Insurance from your employees’ wages. Head over to HMRC’s website to register as an employer and get your PAYE login details. If this sounds daunting, don’t worry – many payroll providers can handle the setup process for you.

When your new employee starts, ask them for their P45 from their previous job or have them complete HMRC’s starter checklist. You’ll use this information to work out their tax code. Make sure to get their National Insurance number too – you can’t process payroll without it.

The monthly payroll cycle

Payroll follows a steady rhythm. Every payday, you’ll need to calculate your employee’s pay and work out any deductions. These might include income tax, National Insurance, student loan repayments, or pension contributions.

You’ll need to report these payments and deductions to HMRC through what’s called Real Time Information (RTI). This means sending a Full Payment Submission every time you pay an employee – no delays or batching allowed. Think of it as keeping HMRC in the loop as things happen, not after the fact.

For monthly payments, you’ll need to send the money you’ve deducted to HMRC by the 22nd of the following tax month. If you’re paying quarterly, mark your calendar for the 22nd after the quarter ends.

National Insurance and Employment Allowance

As an employer, you’ll need to pay employer’s National Insurance contributions for your staff. The rates change from year to year – for 2024/25, you can find the current rates on the government website. Here’s some good news though: the Employment Allowance lets eligible employers reduce their National Insurance bill by up to £10,000 in the 2025/26 tax year. This can make a real difference to your bottom line.

Workplace pensions/autoenrolment

Setting up a workplace pension isn’t optional anymore – even if you only have one employee. If they’re eligible, you’ll need to enroll them automatically. The rules around workplace pensions can feel complex, but getting it right matters. The Pensions Regulator can issue fines if your scheme isn’t up to scratch.

Got seasonal workers or temporary staff? You can use something called postponement to delay enrolling them for up to three months. This can save you some administrative headaches if you’re taking on short-term workers.

Keeping the correct payroll records

Think of your payroll records as your safety net. Keep track of everything: what you’ve paid your employees, what you’ve deducted, reports to HMRC, employee sick days, tax codes – the works. You’ll need to hang onto these records for three years after the tax year they relate to. HMRC might want to check them during a PAYE compliance check.

Speaking of compliance checks, HMRC might pop by to make sure everything’s in order. They’ll typically want to visit your premises and look through your payroll records. If you’re a member of the Federation of Small Businesses, you can get help with these investigations through their Tax Investigation Protection service.

What to do when an employee leaves

When an employee leaves, you’ll need to tell HMRC straight away. Update their payroll record with their leaving date, make any final deductions in your next Full Payment Submission, and give them their P45. Don’t forget about any holiday pay they’ve accrued – you’ll need to either let them take it or pay them for it.

UK National Insurance categories for payroll

Category A covers most of your regular employees. If you’ve got someone earning more than £242 a week and they’re under state pension age, they’ll fall into this group. Simple enough, right? Well, hang on, because it gets more interesting.

Category B doesn’t see much action these days. It’s for married women and widows who opted for reduced rates before 1977. Yes, 1977! A few people still qualify for this, though they’re getting pretty rare now.

Then there’s Category C – you’ll use this for employees over state pension age. They don’t pay NI contributions anymore, but you still need to record them under this category. Makes sense when you think about it – they’ve paid their dues.

Category F is where things get maritime. It covers merchant navy crew members, because apparently sailors need their own special category. Honestly, I’ve processed payroll for years and never once used this one, but it exists!

Category M is interesting – it’s for employees under 21. The government introduced this to make it cheaper for employers to hire young people. Smart move really, saves businesses some cash while giving young folks a leg up.

Category H works like Category M but for apprentices under 25. The government really wants to encourage businesses to take on apprentices, so they created this special rate. You’ll need to keep an eye on their 25th birthday though – that’s when they usually bump up to Category A.

If you’ve got someone serving in the armed forces, they’ll fall under Category N. Not something most payroll folks deal with, but worth knowing about.

And then there’s Category X – this one’s a bit sneaky. It covers employees who don’t have to pay NI (like certain religious groups), but you still need to report their earnings.

The rates change pretty regularly (thanks, Chancellor!), but the categories themselves tend to stick around. You’d think they might simplify it all one day, but I wouldn’t hold my breath. At least knowing these categories helps make sense of all those letters HMRC keeps throwing at us.

Hey, I should mention Category V and Category Z too – they’re for company directors. Z is for directors under 21, and V is for any other age. Can’t forget about the bosses, right? Though why directors need their own categories is anyone’s guess. One of those HMRC mysteries, I suppose.

Remember when they introduced Category L for deferment cases? No? That’s because hardly anyone ever uses it. But it’s there, lurking in the background like that one obscure tax rule everyone forgets about until audit time.

Making payroll easier to manage

Running payroll can eat up your time if you try to handle everything yourself. Many small business owners find that working with a payroll provider frees them up to focus on growing their business. These providers can handle the technical bits while you focus on what you do best – running your company.

Remember, getting payroll right isn’t just about ticking boxes – it’s about taking care of your team and keeping your business running smoothly. Take your time to set things up properly from the start, and don’t be afraid to ask for help when you need it.

Have questions about specific aspects of payroll? Just remember that HMRC and professional payroll providers are there to help you get it right. You’re not alone in figuring this out – every successful business has been exactly where you are now.

UK payroll calendar dates to remember

UK payroll process flow chart

flowchart TD
    A[Hire First Employee] --> B[Register as Employer]
    B --> C[Get PAYE Reference]
    C --> D[Choose Payroll Method]
    
    D -->|Software| E[Pick Compatible System]
    D -->|Basic Tools| F[HMRC Basic PAYE]
    E & F --> G[Set Up Employee]
    
    G --> H[Get Tax Code]
    G --> I[Check NI Category]
    G --> J[Student Loan Status]
    
    H & I & J --> K[Monthly Tasks]
    K --> X{New Starter?}
    X -->|Yes| Y[Get P45]
    X -->|No P45| Z[Use New Starter Checklist]
    
    Y & Z --> L[Run Payroll]
    L --> M[Generate Payslips]
    M --> N[Submit RTI]
    N --> O[Pay HMRC by 22nd]
    
    L --> AA{Employee Leaving?}
    AA -->|Yes| AB[Process Final Pay]
    AB --> AC[Issue P45]
    AA -->|No| O
    
    K --> P{Any Changes?}
    P -->|Salary| Q[Update Records]
    P -->|Benefits| R[Adjust Tax Code]
    P -->|Details| S[Update Employee Info]
    
    Q & R & S --> T[Annual Tasks]
    T --> U[P60s by 31st May]
    T --> V[P11D by 6th July]
    T --> W[Update Tax Codes]
    
    T --> AD[Review]
    AD --> AE[Benefits in Kind]
    AD --> AF[Salary Review]
    AD --> AG[NI Categories]

The post Managing UK Small Business Payroll – Beginner’s Guide 2025 appeared first on Compare Business Bills.