The UK has a thriving startup ecosystem, so it’s no surprise that many non-UK residents want to move to the country to start a business.

The problem is that the UK’s immigration process is complicated and time-consuming. Among the long list of requirements, you usually need to be in full-time work or study to get approval for a visa.

But for entrepreneurs, there is a shortcut. The Innovator Founder visa is the ideal way to get your business off the ground and capitalise on the many venture capital (VC) firms and accelerator programmes we have to offer. 

Below, we’ll explain everything you need to know about the Innovator Founder visa, including its requirements, how to apply and tips to prepare for the endorsement interview.

What exactly is the Innovator Founder visa?

The Innovator Founder visa (previously called the Innovator visa) is for entrepreneurs who live overseas but want to start an innovative business in the UK. Successful applicants can reside in the UK for up to three years (with the opportunity to extend for another three years).

In order to be accepted for the visa, your business idea must be entirely new. You will not be eligible for the programme if you are joining a company that is already trading.

According to government guidelines, to be eligible for this visa, your business must be:

• Innovative: an original business idea that stands out in the market
• Viable: your business has strong potential for growth
• Scalable: you must provide a detailed business plan that shows how your new venture will create jobs and expand into national and international markets

What makes a business “innovative” is somewhat subjective. But the government website defines it only as something that is “not being done by anyone else”. That might mean you’re using new technology, or just applying it in a different way.

For example, the UK has become the focal point for the developing Artificial Intelligence (AI) sector, with many AI startups raising funding in the UK in the last year.

Given the UK government’s AI Opportunities Action Plan to invest further in the industry, overseas founders may have a good chance of obtaining the Innovator Founder visa if they can prove that their products or services will utilise AI. 

What are the fees and how long does it take?

In terms of fees, the Innovator Founder visa costs £1,191 per person if you apply outside the UK, and £1,486 if you apply to extend or switch your current visa. 

You can also apply for “priority service” for a faster decision, although this costs an additional £500 on top of your application fee.

As with other visas, you’ll be required to prove your identity via relevant documents (more on this below). Once your paperwork is submitted, you’ll usually get a response within three weeks if you’re outside the UK, and eight weeks if you’re currently residing in the country.

What you need to apply for the Innovator Founder visa

Before applying for the Innovation Founder visa, there are several important steps you’ll need to complete to demonstrate that your business is viable, well-planned and that you’re personally prepared to launch and sustain it in the UK.

1. Endorsement

Before applying for the visa, applicants must first have their business proposal assessed by an approved endorsing body (usually a government-run programme). 

The endorsing body will require evidence that sufficient funding is in place to support the venture, along with details of the source of those funds. If they decide your business is eligible, you’ll receive an endorsement letter to support your application.

After 12 and 24 months, you’ll need to check in with your endorsing body to prove your startup is making headway. Fall short, and you may need to reapply to lock in a fresh endorsement before the current one times out. 

2. A detailed business plan

Every company needs a business plan. This is a document that should clearly state your intentions and ambitions. It should include:

• Details of your business idea and the unique selling point (USP) it offers
• Information on your products/services (including your pricing strategy)
• An understanding of your target market and competitors
• A cash flow forecast, with details on your incoming and outgoing expenses
• An explanation of your day-to-day activities (e.g. how your business will operate, how you’ll sell to customers, and who your suppliers will be)

While statistics and evidence are important to endorsing bodies, don’t forget to show your passion for your business through your mission statement and core values.

3. English language requirements

You’ll also need to provide evidence of your English language knowledge, proving that you can read, write, speak and understand English to a qualified level.  

4. Sufficient funds

Endorsing bodies will need to know that you have enough money to fund your business, and where it’s from. You’ll need to have at least £1,270 in your personal or business bank account for 28 consecutive days before you either apply, extend, or switch to the Innovation Founder visa. You cannot use money generated from investment funds to support yourself.

How to apply for the Innovator Founder visa

Once you’ve been approved by an endorsing body, you’ll need to complete the online application form.

You can either use the “UK Immigration: ID Check” app to scan your documents, or have your biometrics (fingerprints and photo) taken at a visa application centre. Here’s a list of documents you’ll need to complete the process:

• Valid passport or other document that proves your identity and nationality
• Bank statements to prove you have enough personal savings 
• Proof that you meet the English language requirements
• Tuberculosis test results (if applicable)

If your supporting documents aren’t in English, you’ll need to provide a certified translation.

Can I bring my family with me?

If you have a partner and/or child, your family can also apply for the Innovator Founder visa as your ‘dependents’, as long as they can afford to look after themselves when they join (your partner will also be able to work when they arrive).

In addition to the £1,270 you must have to support yourself, you’ll need:

• £285 for your partner
• £315 for one child
• £200 for each additional child

How to prepare for your endorsement interview

You should treat the endorsement interview and application like a business pitch. And much like how you’d pitch to investors, preparation is key to ensuring you get the best possible result. Here are a few tips to help you out:

1. Understand the criteria

Remember – your business needs to be innovative, viable and scalable to be eligible for the Innovator Founder visa. For this, you’ll need to explain how your idea is original and can meet a new or existing market need, can realistically be delivered, and if there’s a potential for job creation and growth into international markets.

2. Know your business plan

Given how important this document is, you should expect questions about your business plan. Practice explaining in a clear and concise manner the problem you’re solving, your target market, your business model, and financial forecasts.

Additionally, make sure to research the endorsing body, such as the sectors they focus on and what businesses it has supported before.

3. Prepare for common interview questions

For this, you should prepare your answers beforehand so that you’re not caught off-guard. Common interview questions that you’ll likely be asked include:

• What makes your business innovative?
• How is your solution different from existing ones?
• What is your competitive advantage?
• How do you see your business progressing over the next three years?
• What’s your timeline for growth?
  

4. Bring supporting documents

They’re not explicitly required, but you may also want to bring some supporting materials along to the interview in order to strengthen your case, such as:

• Financial projections
• Product prototypes or demos (if applicable)
• Testimonials or letters of support

Ready to launch in the UK? Check out our guide to starting a business to help you set up successfully and hit the ground running.

There’s yet more bad news for SMEs on the financial front as the new tax year rolls around.

As of April 6, HM Revenue & Customs (HMRC) has reportedly increased the interest rate paid on late tax payments in a bid to encourage self-assessment taxpayers to pay on time.

In this guide, we’ll break down the changes, why it matters to businesses, and offer practical advice to avoid facing penalties.

HMRC justifies rate change, but is it fair?

According to investment platform AJ Bell, the key change is that the interest rate for late tax payments has increased from 7% to 8.5%. This adjustment will impact the 12 million taxpayers who file self-assessments, resulting in higher costs for those who miss payment deadlines.

In a press release published in February, HMRC stated that its interest rates aim to be fair, explaining that “the late payment interest rate encourages prompt payment.” It argued that the repayment interest rate compensates taxpayers who have overpaid.

However, the late payment rate is currently over twice as high as the repayment rate, which stands at 3.5%. This disparity means that taxpayers pay much more interest on late payments than they receive on refunds, raising concerns about fairness.

How should SMEs respond?

While it’s not exactly good news, the new rates are at least avoidable if you stay on top of upcoming tax deadlines.

To start, it’s important to improve your record-keeping. By establishing a reliable, HMRC-compliant tax management system that suits your business, you can ensure that your self-assessments are conducted accurately.

For example, accounting software can automate much of the tax return submission process for you, making it less time-consuming and reducing the likelihood of errors.

Another smart move is marking important tax deadlines in your calendar. This way, you’ll avoid the late payment interest rates altogether.

If you’ve not submitted a self-assessment tax return before, the deadline for letting HMRC know that you need to is by midnight on October 5 2025.

If you’re sending your tax return on paper, then you must do so before midnight on October 31 2025. 

Online self-assessment taxpayers have more time, with the deadline set for midnight on January 31 2026. But if you want HMRC to automatically collect tax you owe from your wages and pension, you must submit your online return by 30 December 2025.

If all of this sounds a little overcomplicated, you may prefer to seek professional advice or hire an accountant to take care of tax returns for you.

Finally, you should implement good cash flow management to ensure that you have enough cash to fulfil tax repayments and avoid the hiked late payment interest rates.

Compliance, compliance, compliance

In addition to the increased interest rate, last month’s Spring Statement confirmed the recruitment of an additional 500 tax compliance officers by HMRC, on top of a further 5,000 previously announced in the 2024 Autumn Budget.

The combination of higher late payment rates and increased HMRC enforcement heightens compliance risks for SMEs. Businesses nationwide should be vigilant about meeting deadlines to avoid incurring additional financial burdens.

Seb Maley, CEO of tax insurance firm Qdos, warns: “The takeaway here is that compliance is arguably more important than ever.

“Forget to file or pay your tax bill and not only will you pay the price financially, but you also run the risk of being investigated by HMRC – which can be a costly, altogether stressful ordeal without the right protections in place.”

Social media platforms have long evolved beyond being simply a source of memes and online commentary. In 2025, Instagram, TikTok, and Facebook are now considered part of the ecommerce industry. This fusion of social media and online selling is aptly titled ‘social commerce’.

Last year, research from money.co.uk finds an estimated 16.2 million social commerce users generated £7.3 billion in sales. So it’s safe to say, business is booming.

Social commerce allows online sellers to offer their customers an integrated shopping experience as they scroll. Sellers can use influencer marketing to advertise their products with reviews and tutorials, while buyers can discover and purchase new products without even having to leave the app.

The approach can feel more organic than traditional ecommerce and has already completely reshaped consumer-brand interactions.

Below, we’ll explain the sectors that are leading the charge in social commerce, and which are the best platforms if you want to get started yourself.

Unveiling the top performing industries

A recent study from money.co.uk showed that beauty and wellness is the leading social commerce sector in the UK. The study analysed user, industry, platform, engagement insights, and more to assess the UK’s social commerce market.

Nearly half (46%) of all UK social commerce users in the beauty and wellness industry made a purchase in the last 12 months. It’s not surprising, since there is an increasingly large population of beauty and wellness influencers in the space.

Many successful beauty startups, such as Glossier, have used customer advocacy to promote items, relying on organic testimonials to give users a taste of what their products look like on real-life wearers.

money.co.uk reports that Clothing and Footwear is the second most popular category for social commerce shoppers. In the last 12 months, 40% of online shoppers made a purchase in this category.

Fashion is a popular topic in social media content in the format of OOTD (Outfit of the Day), styling, and trend forecasting videos. This gives brands tons of opportunities to plug their products organically.

Third in line, we have Home and DIY as one of the most successful categories for social commerce. With 24% of users making purchases in this category in 2024, it’s clear that how-to and home-style inspiration videos are working in brands’ favour.

What are the best platforms for social commerce?

The best platform for your social commerce strategy may differ depending on your goals, brand, and products.

TikTok’s built-in online store, TikTok Shop lends itself particularly well to viral trends. This means it can be great for relatively unknown brands to gain visibility. By latching onto current meme formats, brands, online sellers and TikTok dropshippers can attract new customers. Furthermore, users can click ‘buy’ without even leaving the app.

While TikTok focuses on fast-paced, viral content and direct in-app purchases, Instagram has a more curated approach. The platform helps brands create a visually appealing online store and champions a lifestyle-driven shopping experience with features like shoppable posts and tagged products. This works well for businesses that want to post more aspirational content to build their brand.

If you’re stuck between the two, you could use your target market as a guide. The money.co.uk study finds Instagram is the top social commerce platform for Millennials, with 37.3% of respondents aged up to 34 making a purchase through the platform. Gen Z’s favourite is TikTok, with 43% preferring the lip-syncing app to Instagram.

Turning trends into transactions

It’s clear that social commerce is on the rise; how can small businesses get involved?

Joe Phelan, from money.co.uk, says businesses need to move with agility to keep up with the rapid development of social selling. “Given the fast-paced nature of social commerce, businesses need to be agile to succeed. The ability to quickly respond to trends and engage with both existing and potential customers is crucial,” he says.

It’s key to properly understand user behaviour and get trends right, especially if you’re attempting to crack a younger market. Experimenting with social media, particularly TikTok, for the first time can feel like unchartered territory. Hiring dedicated social media management can help you nail the tone of voice, timing, and content formatting necessary to seamlessly engage with social media users.

It’s also important to be clear about your brand values when deciding to work with third-parties, such as influencers. You’ll want to choose carefully when establishing partnerships, as they will act as a temporary face of your brand.

Ultimately, social commerce is an exciting development for SMEs to approach sales more creatively. The future of ecommerce is undeniably social.

Many people assume you need six figures to start a business. But thanks to evolving technology and the modern world of work, it’s easier than ever to launch a new venture.

It’s fortuitous timing. In today’s poor economy, accessing the funding you need has also become more challenging than ever. 

If securing financial support now proves to be difficult, a great option is to monetise the skills you already have. This will allow you to launch on a shoestring budget. Say, £1,000?

Whether you dream of one day running a fully-fledged limited company, or sticking to a side hustle for extra cash, here are nine business ideas you can get going with for just £1,000.

1. Opening a market stall

Not got £30,000 to open a brick-and-mortar shop? Setting up a market stall is a cost-effective way to build your retail brand while connecting directly with customers. 

Whether you’re selling handmade goods or fresh produce, a market stall offers aspiring shop sellers the chance to engage directly with an audience, giving them immediate customer feedback and insights to further identify their target market. 

The cost to set up a market stall largely depends on factors like location, market type (e.g. permanent, seasonal, or event) and stall size. Fees usually vary between £20-£100 per day, though. Research the best markets to sell at near you for a more specific cost breakdown. 

2. Salon chair rental

Starting your own salon and hairdressing business costs a lot, especially when factoring in expenses like renting a space, salon equipment, stock and insurance. However, there’s a cheaper alternative: renting a hairdressing chair. 

Chair rental involves paying a weekly or monthly fee to work in an established salon, rather than renting your own space – making it a flexible and budget-friendly way to build your client base, set your own hours, and keep more of your earnings without salon overheads.

The average cost to rent a salon chair depends on location, demand, and included amenities, but typically ranges from £50-£250 per week. The three main options to rent a salon chair are:

• Fixed rent: the salon charges the business a fixed rate every month to set up within their establishment.
• Percentage agreement: instead of charging rent, the salon takes a percentage of the hairdresser’s earnings.
• A bit of both: some salons use a hybrid model, charging a fixed rent while also taking a percentage of earnings.

3. Dropshipping

Dropshipping is when you sell products without holding any inventory. Instead of buying stock upfront, you partner with a supplier that handles storage, packaging and shipping. When a customer places an order on your online store, you purchase the item(s) from the supplier, who in turn ships it directly to the customer.

The main benefit of dropshipping is that there are low startup costs and you only have to buy products when you make a sale. Dropshipping  can easily be done on a budget, with the main costs including:

• Setting up an ecommerce platform: up to £20+, depending on the chosen platform.
• Marketing costs: paid ads (£5-£20 per day), email marketing (£10-£50 per month), search engine optimisation (SEO) (£50-£200 per month).

4. Dog walking

If you love dogs and enjoy taking your own out for walks, then a dog walking business is a flexible and low-cost way to earn money, all while spending time with your furry friends. 

Moreover, it offers a valuable service for busy pet owners who may not have the time to walk their dogs regularly, as well as elderly or disabled individuals who might struggle to do so themselves. The main costs to consider for a dog walking business include:

• Insurance: public liability insurance (around £80-£150 per year) to protect against accidents or injuries involving the dogs in your care.
• Equipment: leads, harnesses, treat pouches, poo bags, and a first aid kit.
• Transport: if you plan to cover a wider area, you might need a car or van, plus fuel and insurance costs.

5. Online services

The beauty of today’s digital age is that it’s easier than ever to find services for just about anything — from freelance work and online coaching to virtual assistance and digital marketing. And if you have a specific set of skills, you can turn them into an online business, offering your expertise to clients around the world with minimal startup costs. 

There are many options to explore when setting up online services, including freelance copywriting, graphic design, social media management, web development, SEO and more.

While an online business is relatively low-cost compared to traditional businesses, there are still some essential expenses to consider. These include:

• A website builder (starting from £1.99 per month)
• A payment gateway (usually a percentage of your total transaction fees)
• Accounting software (up to £15 per month)

6. Outside services

On the other hand, if you’re looking for a business idea that involves more hands-on work, there are plenty of low-cost options out there in the real world. Whether you’re interested in working directly with people, or offering services that require a bit of physical effort, there are plenty of avenues you can choose that won’t break the bank.

A few ideas could be running a landscaping business, house cleaning, and handyman services. In terms of cost, you can expect costs for:

• Logistical purchases (e.g. a lawnmower for around £200). You may also need a car/van for transport
• Basic supplies (e.g. vacuum, mop and cleaning products): around £50-£200
• Specialised tools (e.g. drills, saws or plumbing equipment): around £100-£500 

7. Tutoring

If you want to share your skills with others, then becoming a tutor could be right up your street. Whether you want to teach online or in-person, setting up your own tutoring business is both cost-effective and helps others succeed by sharing your expertise.

Having the right qualifications and skills is the key thing. But you’ll also need to consider a few upfront costs as well. These include:

• Teaching materials: books, video conferencing software, or other educational resources (around £20-£200)
• Insurance: professional indemnity insurance or public liability insurance to protect yourself and your clients (around £50-£150)
• Technology and tools: if you’re tutoring online, you’ll need a computer with a webcam for around £100 (as well as a reliable internet connection) 

8. Ecommerce selling

Setting up a traditional retail store is a heavy investment. As we’ve already covered, starting a market stall can be a good way into the industry.  But thanks to the rise of ecommerce businesses, an even easier option is to start an online store.

This business model typically has minimal upfront costs and enables sellers to reach customers from all around the UK, within the comfort of their own home.

Even if you don’t feel like setting up your own website, there are plenty of platforms where you can sell online for a cheap cost, including Amazon, eBay, and Etsy. These platforms provide access to a large target audience without the need for a complex setup.

Key costs to consider include:

• Subscription fees: the average cost of a website builder for a small business can range from £1.99 to £259 per month.
• Listing fees and transaction fees: for example, Etsy charges UK sellers 16p per listing, as well as a 4% + 20p processing fee per transaction.
• Payment processing fees: payment processors like PayPal or Stripe charge a transaction fee of around 2.9% + £0.30 for each sale.
• Insurance: if you’re shipping valuable items, you may need to add insurance (£1-£5 per item depending on value).

9. Virtual assistant business

A virtual assistant (VA) business involves providing administrative, technical or creative support to clients remotely. This means you offer services that help businesses or entrepreneurs manage their tasks, without the need for them to hire a full-time employee.

Not only is investment minimal, but it also offers great flexibility and work-life balance, as you can often choose your working hours and location. Plus, as a virtual assistant, you can offer a range of services based on what you’re good at and what you enjoy — whether that’s managing emails, handling social media or creating content.

These are the typical costs you can expect by becoming a virtual assistant:

• Training and certifications: prices for VA courses typically range from £50 to £500, depending on the specialisation (e.g. administrative, social media management, etc.)
• Software and tools: organisational skills are vital for VAs. project management software, communication platforms (such as Zoom or Slack), and office tools (Google Workspace) can cost anywhere from £10-50 per month.
• Insurance: liability insurance to protect yourself from potential legal issues, which costs around £50-£150 per year.

Other costs to consider

While each new business or side hustle comes with different costs, there are essential expenses that apply to all businesses.

1. Business registration fees

Registering your business with Companies House typically involves a fee of around £50-£78. However, this does not apply if you operate as a sole trader. You can find a list of company incorporation and registration fees here.

2. Trademark registration

If you want to protect your business name or logo, you’ll need to register for a trademark. This costs from £40 to £200 and must be paid for via the government website.

3. Domain name

Securing a website domain name will help you establish a professional online presence, build credibility, and make it easier for customers to find you. Depending on the hosting provider you choose, costs can start from as little as £2.50 per month.

4. Business website

Nowadays, you don’t have to spend a fortune to build a website or hire a professional to do it for you. Many website builders offer a cheap, easy-to-use platform where you can create a professional-looking website without coding or design skills needed, and without having to fork out a lot of money.

While there are some free website builders out there, costs for extra features can cost up to £260 annually, depending on the platform’s pricing plan.

5. Office space (if applicable)

If you plan to use office space to run your business, costs like rent, building maintenance, security, heating, and other services can quickly add up.

Alternatively, if getting a commercial lease for an office space is out of your budget, you can look into coworking spaces. These offer flexible, cost-effective options where you can rent a desk or private office on a monthly – or even daily – basis. They also come with perks like high-speed internet, meeting rooms, printing services and even free tea and coffee.

Ready to get started?

Starting a business doesn’t have to cost a fortune, as there are many ways you can get going with as little as £1,000 — especially if you focus on low-overhead ideas, use existing skills, and make the most of free or affordable online tools.

That said, if you do want to think bigger, our article on small business grants lists all of the latest funding grants that are available in the UK, as well as how to apply. 

There are also grants available for women-led businesses, offering extra support to help female entrepreneurs get their ideas off the ground and grow their ventures with confidence.

You’ve probably seen the headlines. Global stock markets have plummeted following escalating trade tensions between the US and, well, the rest of the world. This morning, the UK’s main stock market, the FTSE 100, dropped to a one-year low.

It’s a confusing situation, and investors, businesses, and individuals with pensions or personal shares are naturally feeling anxious. Although UK SMEs don’t directly participate in the stock market, they will still face indirect effects. Business owners should take steps to protect their profit margins during this period of market volatility.

Below, we’ll explain the current market situation in simple terms, and offer some straightforward, actionable advice to help you weather the storm. 

Understanding the market meltdown and its causes

The FTSE 100 has taken a hit in recent days. The index, which measures the value of some of the UK’s biggest companies, has fallen by 6%. That means it’s the lowest it’s been since February 2024. 

Across the globe, there has been widespread market volatility, with Asian stocks plunging particularly dramatically. The main cause of the market chaos is US President Trump’s introduction of new trade tariffs on April 2, or what he called “Liberation Day”. 

Tariffs are taxes imposed by a government on imported goods. Last week, Trump raised US tariffs with the aim of ‘making America wealthy again’. Tariffs are charged to the companies bringing the goods into the US, and paid to the US government.

The UK will face the 10% baseline tariff, while those in the EU will be charged 20%. The highest rate of 50% will apply to 60 countries, including Malaysia, India, and Vietnam. The tariffs are set to take effect in days.

There will also be higher charges placed on specific imports, including 25% on steel, aluminium, and foreign-made cars, which UK manufacturers will need to pay.

The news has been met with widespread disdain. Generally, tariff increases are not a good thing for the global stock market, as they increase prices for consumers and reduce the flow of trade. They can also induce retaliatory tariffs, further destabilising the situation. 

China has already announced a 34% tariff on imports from the US, matching Trump’s rate for Chinese imports to the US.

The best next step would be “concrete action” said Kathleen Brooks, research director at XTB. “The best panacea for financial markets right now would be a pause or reversal from the US on its tariff programme,” she told The Guardian.

How market volatility impacts SMEs (and how to respond)

While SMEs may not be directly invested in the international stock market, they should still prepare for the fallout of the market’s volatility. 

Business owners need to consider how a fall in the stock market might impact their bottom line, especially following previously announced tax hikes. 

Stock market crashes are often followed by a recession, which can drastically reduce consumer confidence and limit spending. The cost of borrowing also becomes more expensive as interest rates rise, which could result in cash flow issues across the supply chain as more companies default on payments.

In addition, supply chain disruptions may become more common, especially if key suppliers are at the mercy of international markets or faced with increased costs. Fluctuations in currency can also affect the cost of imported goods and materials, which will further tighten business profit margins. 

And finally, larger organisations may be more likely to delay all-important investment decisions or pause new project kickoffs. This is bad news for smaller businesses and startups, whose success may be riding on successfully pitching to investors.

While this is a lot to digest, there are proactive steps SMEs can take to mitigate the potential risks. By reviewing and diversifying supply chains, firms can reduce the impact of delays or price hikes. It may be wise to look into alternative or local markets to identify new revenue streams that are less directly impacted by global stocks. 

As consumers will be holding onto their pennies during this time, it’s as important as ever to maintain strong customer relationships. Likewise, careful cash flow management during this time will be crucial to maintaining financial stability. 

Another tip is to explore flexible financing options, which may provide breathing room to both businesses and consumers.

Finally, if you’re feeling particularly under strain financially, we recommend seeking professional advice and staying informed on economic developments. This can help you make confident decisions and make the most of the help available. 

How is the Government responding?

As it stands, the UK has got off lightly from Trump’s global tariff tirade. Still, the planned changes will still bring knock-on effects across the entire global supply chain. How does the Government plan to respond? 

On Sunday, Prime Minister Sir Keir Starmer announced that he was prepared to use industrial policy to “shelter British business from the storm”. 

For one thing, it’s expected that announcements on public-sector investment into the UK industry and infrastructure will come sooner than planned. Entrepreneurs should stay tuned for that in the coming days and weeks ahead. 

But the global economic landscape remains uncertain, and the full impact of these trade tensions is yet to be seen. SMEs must remain vigilant, closely monitoring developments and adapting their strategies as needed.

Tax brackets and responsibilities can be difficult for anyone in the working world to wrap their heads around. But new research suggests even bosses are struggling to make sense of it. 

Somewhat alarmingly, digital payments provider, takepayments has discovered that 31% of sole traders don’t know what tax band their business is in.

With a new financial year starting this Sunday, being unaware of tax obligations can lead to costly penalties. We’ll go through the key tax responsibilities for the self-employed, below.

Understanding tax bands

The tax band you’re liable for ultimately depends on your business structure. Here’s a breakdown of the different tax obligations and what they mean for sole traders: 

Income Tax

A tax that sole traders pay on earnings. The amount you pay depends on your income and tax band. The current rates in England, Wales and Northern Ireland are:

National Insurance

Self-employed workers pay National Insurance Contributions (NICs), depending on profits. You’ll have to pay Class 4 NI if you earn over £12,570 a year. The current rates for NICs are:

• 6% on profits of £12,570 up to £50,270
• 2% on profits over £50,270

You can also make Class 2 NI contributions (£2.50 per week for 2025/26) if your profits are less than the Small Profits Threshold of £6,725. However, as of April 2024, these payments are now treated as voluntary for the self-employed.

Value-added tax (VAT)

Both sole traders and limited companies have 30 days to register for value-added tax (VAT) if their turnover reaches more than £90,000 annually. Once registered, you’ll have to charge VAT on your goods and services and submit VAT returns to HMRC. 

Business rates

Any small business with a physical establishment will be liable for business rates, which is a tax on commercial properties, such as offices, shops and warehouses. 

Business rates are calculated based on the rateable value of a property and are typically paid to the local council. However, some traders may be eligible for Small Business Rates Relief (SBRR) to reduce their costs.

How to make 2025 less taxing

While the rise in Class 1A employer NICs is unlikely to affect the self-employed, small businesses and sole traders who are planning to take on employees this year need to be aware of the changes to avoid any unexpected liabilities. Here’s what you need to know: 

1. Tax deductions

HMRC offers several tax deductions that employers qualify for to offset some of these costs. For example, the Employment Allowance scheme allows businesses to reduce their NICs by up to £5,000 per year, helping to lower their overall tax burden if they have employees.

Other common tax deductions include:

• Business rates relief
• Charge, reclaim and record VAT
• Claim capital allowances
• Self-employed expenses

2. Accurate record-keeping and timely tax submissions

Accurate record-keeping is essential to avoiding any tax-related headaches. Using good accounting software, such as HMRC-approved tools like QuickBooks, Xero, and Zoho Books, can help make the process easier by automatically tracking expenses, generating reports and helping you meet deadlines, such as for Self-Assessment, on time.

3. Seeking professional advice

Sometimes, the best way to stay on top of your taxes is to consult with a tax advisor or accountant. That way, you can get expert guidance tailored to your business, helping you take advantage of available deductions and ensuring you’re meeting all your obligations.

Whether it’s understanding complex tax laws, planning for the future or getting help with filing, professional advice can save you time, stress and potentially money in the long run.

takepayments has developed a Business Tax and National Insurance Calculator on their site, which helps sole traders estimate what their monthly and annual tax payments will be, based on their income and expenditure. 

Tax blindness and its impact on SMEs

takepayments’ study, which surveyed over 400 sole traders and freelancers, also found that nearly half (43%) aren’t aware of the tax rate for their band. Moreover, 34% don’t know the deadline for making any advanced payments towards their bill.

“It’s not surprising that many small business owners are unsure of the legal obligations they have regarding things like tax and VAT,” comments Jodie Wilkinson, Head of Strategic Partnerships at takepayments. “The rules can be quite difficult to understand, especially if you just want to focus on growing your business.”

While sorting taxes can be a tedious task, accurate tax knowledge is essential for SME financial management, cash flow management and investment decisions.

Failing to meet tax obligations can also lead to serious consequences, including penalties for missed payments and even more severe legal actions or fines. HMRC can also impose fines for late filing or payment, with penalties ranging from £100 to higher percentages of the tax owed, depending on the length of the delay.

As the new financial year begins, now is the time for SMEs to take control of their tax obligations. Start by familiarising yourself with your tax band, taking note of key deadlines and ensuring your record-keeping is in order. 

Consider using good accounting software to streamline the process and reduce the risk of errors, and don’t hesitate to seek professional advice if you’re unsure.

The new National Living Wage (NLW) was officially introduced yesterday, increasing the minimum hourly pay for all employees aged over 21 to £12.21 per hour (the National Minimum Wage for under 21s has also increased). 

But many are already urging major retailers to swap out the NLW and pay employees the higher Real Living Wage (RLW) instead. Among them, campaigners are calling on companies like Next, Marks & Spencer, and JD Sports.

What exactly is the Real Living Wage, how is it different from the NLW, and why are campaigners pushing for it now?

What is the Real Living Wage for 2025?

The UK’s Real Living Wage is a voluntary hourly rate that’s calculated to reflect the cost of living, ensuring workers can meet their basic needs without having to rely on government support.

As of April 2025, the RLW is £12.60 per hour (or £13.85 per hour if you’re based in London, to reflect the city’s higher living costs). 

The difference between the National Living Wage and the Real Living Wage is that the NLW is set by the government and is legally enforced. 

In comparison, the RLW is set by the Living Wage Foundation and is completely voluntary.

Why should employers pay the RLW?

Last week, a group of major investors, including Axa, Scottish Widows and Trust for London, began calling for M&S, Next, and JD Sports to offer the Real Living Wage to its employees. The campaign is being led by responsible investment group, ShareAction.

Speaking to The Guardian, ShareAction CEO Catherine Howarth commented: “The UK’s biggest retailers are failing to support their workers with a real living wage, leaving hundreds of thousands of people in the sector struggling to make ends meet,”

“Companies whose workforce can earn less than a real living wage are ultimately harming the vitality and growth of the UK economy, with business models that put pressure on workers, their families and the state by adding to health and welfare costs.”

In low-wage sectors like retail and hospitality, the RLW is naturally beneficial for workers. However, it can also reflect positively on a company’s core values, as it demonstrates a commitment to fairness, employee wellbeing, and social responsibility.

The resolution claims that current pay rates at Next mean that the company isn’t living up to its stated organisational culture where everyone is “treated fairly and with respect”.

For an example of how the RLW can create impact branding, look to Scottish brewery firm BrewDog, which faced criticism last year after dropping its RLW accreditation. 

BrewDog’s then-CEO James Watt claimed it was “necessary” to rebuild the chain’s profitability after a £24m loss. However, staff accused BrewDog of  “abandoning its principles” over the move. 

Employer costs rise this week

Today’s bosses want to reward staff fairly through higher wages. But businesses that do introduce RLW may struggle to sustain it in the long term, especially in industries with tight profit margins. As BrewDog’s controversy proves, introducing RLW only to later withdraw it can damage a company’s reputation more than never offering it at all.

Paying the RLW will be even less feasible for businesses next week, thanks to the rise in employer National Insurance Contributions (NICs), which will come into effect this Sunday 

The tax change has pushed many businesses to reconsider their pay bills and take drastic measures to cut costs, including workplace layoffs. 

Hospitality businesses in particular have struggled with these changes, with only 70% of firms feeling optimistic about growth in the next year; the lowest of any other sector. 

Last November, 200 hospitality bosses warned that the incoming NIC increases would cause “unprecedented damage” and even force some organisations to close completely.

How can I reward staff without raising pay?

With labour shortages still threatening operations at many hospitality businesses, larger restaurant chains are opting to boost their remuneration packages with clever staff benefits, such as discounted meals, cycle-to-work schemes, and referral bonuses. 

If you run a restaurant business and are looking for inspiration, here are some examples of how large employers are rewarding teams without raising pay:

• Gordon Ramsay Restaurants: offers structured training programmes (e.g. chef apprentice programme and wine knowledge training) to progress in the company
• Forza: named the happiest restaurant group to work at in 2024, Forza offers an array of perks for staff, including two mental health days and discounted gym memberships
• Dishoom: offers employees 50% off when dining with friends and family

While the RLW offers better pay, it’s tough for many businesses to take on, especially with rising costs and slim profit margins. And as BrewDog showed, being forced to reel back on RLW accreditation can be damaging to a company’s reputation. 

Increasing wages may not be an option right now, but strategic perks packages can help to keep employees motivated and reduce staff turnover, without costing businesses.

Refillable deodorant brand Wild has been bought by the multinational consumer goods company Unilever for an undisclosed sum, in a deal that will reportedly value the brand at £230m.

Wild has twice been featured in the Startups 100 Index and was also previously nominated for the Startups 100 Sustainability Award in 2023. 

Co-founder Charlie Bowes-Lyon yesterday announced the sale on LinkedIn, stating it would help to supercharge Wild’s mission to eliminate single-use plastics in toiletries.

The move is a major step forward for the company. Unilever’s expansive distribution networks will enable Wild to grow faster while staying true to its eco-friendly mission. 

Who is Wild?

Wild Cosmetics is a premium, Brixton-based cosmetics startup that was co-founded by Bowes-Lyon and Freddy Ward in 2019. It offers eco-friendly personal care products that are also refillable, serving to reduce plastic waste and promote natural ingredients.

Aside from being recognised multiple times in the Startups 100 Index, Wild has built a significant customer base over the years. It is today available in many stores across the UK, including Sainsbury’s, Booths, and Selfridges.

Fun branding, effective marketing strategies, and authenticity have also helped to build Wild a loyal community of customers who share the company’s core values and commitment to sustainability. In 2024, the brand saw its sales more than double to £14.9 million.

What does the deal mean for Wild?

According to reports, Bowes-Lyon and Ward will land a near-£100m payday for the sale. Both founders will stay on to run the firm alongside their 100-strong team of ‘Wildlings’.

Bowes-Lyon says that this change will see the company “doubling down on innovation, investing in cutting-edge sustainable technologies and working with Unilever’s world-class formulators” to further improve its offerings.

In an interview with The Guardian,  Bowes-Lyon hinted that joining Unilever could also lead to lower prices for Wild’s loyal fans. 

Some may be concerned about how the change in ownership will impact Wild’s core values. Bowes-Lyon certainly isn’t. In the full announcement post on LinkedIn, he wrote “Our promise remains: “Great for your body, great for the planet.”

Unilever’s latest acquisition comes as the group carries out major cost-cutting changes, including making 7,500 workplace layoffs globally.

Fabian Garcia, president of Unilever’s personal care department, added: “The brand’s innovative approach to formulations and packaging, and social-first marketing, has made Wild an unmissably superior brand and a perfect complement to our personal care portfolio.”

It’s the debate of the century in the recruitment world – are AI job applications a smart hack to win candidates their dream role, or are they just plain cheating?

AI is helping many organisations to cut corners on fiddly admin tasks, causing jobseekers to increasingly rely on it to write time-consuming cover letters at scale.

Employers and recruiters have been vocal about their disdain for AI CVs. But one expert argues that the use of chatbots and other smart tech isn’t the problem. Instead, it’s outdated recruitment processes that are causing this divide between bosses and job hunters.

Employers’ distaste for AI CVs

Since the start, employers haven’t hidden their contempt for AI CVs. In fact, 80% of UK hiring managers rejected AI-assisted CVs and cover letters last year alone. Lord Alan Sugar also voiced his disapproval of AI resumes in January, describing them as “cheating”. 

David Morel, CEO of Tiger Recruitment, reports that his business is seeing “a significant increase in employers pushing back on applicants who submit CVs generated by AI”.

On the anti-AI side of the table is Sean Horton, Managing Director at Respect Mortgages. Horton thinks that AI CVs are “lazy” and show a “lack of commitment from the start”.

“Experienced employers can easily spot AI written content. It’s not genuine or personal and will often use phrases that aren’t naturally used,” he argues.

However, Sam Newton, Director at Gravitate Accounting argues that while employer concerns are understandable, AI detectors that are used to identify AI-generated content like CVs and cover letters “are not completely reliable” and that “using them without due diligence risks dismissing strong candidates unfairly”.

Are cover letters going out of fashion?

Olive Turon is Head of People and Culture at the talent assessment platform TestGorilla. Turon argues that while the concerns around AI job applications are valid, the real issue is that bosses are still even asking for cover letters, which Turon suggests are now outdated.

Turon comments: “If cover letters are filled with generic phrases like ‘leverage my skillset’, it’s not necessarily because candidates are cheating, but because they’re trying to meet expectations set by a system that rewards style over substance.”

A LinkedIn poll by software development company Teal reveals that the majority of respondents (82%) consider cover letters to be outdated. 

However, most UK employers still believe they’re important when considering new applicants. According to data by CVGenius, 56% of hiring managers believe that candidates who submit a cover letter are more passionate about a job.

Skills-based hiring is the new way forward

Turon advises that modernising the hiring process by focusing on skills-based hiring is the best approach to balancing the use of AI in job applications.

“The real challenge isn’t filtering AI – it’s rethinking how we assess potential in the first place,” Turon says. “That means moving beyond polished prose and focusing on how someone thinks, adapts, problem-solves and collaborates instead,”

“These days, soft skills like adaptability, emotional intelligence and creative thinking are just as important as technical ability,” she adds. “[Skills-based hiring] allows hiring managers to assess a candidate’s ability upfront, based on real tasks and relevant behaviours. When the focus is on demonstrated skill, there’s little room for AI to do the heavy lifting.”

According to a report by The HR Director, 81% of employers leveraged skills-based hiring in 2024. Moreover, research from the Startups 100 survey revealed that 64% of SMEs now prioritise soft skills over hard skills when hiring. 

Richard O’Connor, Director at First Mats, is one employer who would agree. O’Connor believes that an AI CV should not rule a candidate out. He says the real test comes later.

“If they can prove their knowledge or experience face-to-face, backed up by the references they provide, then how they created their CV will become irrelevant”, he comments.

What should employers do?

While many employers see AI CVs as the “easy option” to apply for a job, that doesn’t mean utilising the technology should be completely off the table. A CV created entirely with AI is easy to dismiss, but those who rely on AI purely for assistance shouldn’t be discarded. 

The blame may also lie on both sides. Ironically enough, candidates are increasingly seeing AI job specs as companies lean on the technology to write descriptions for job seekers. Applicants who see these ads may presume that AI is permitted in the hiring process. 

Employers should not be so quick to criticise AI use, particularly when so many now use the technology in their HR operations. Employers should further determine suitability in the interview process and a skills-based approach to ensure smooth, fair and unbiased hiring.

Since its first run in 2005, we’ve seen many Dragons’ Den investors come and go – listening to different pitches, negotiating deals and deciding to back some of the UK’s most successful businesses with their hard-earned cash.

But among the successful investments and failed ventures, Peter Jones takes the crown for the richest Dragon, with an impressive net worth of £1.2bn.

However, just like most entrepreneurs, the Dragons didn’t start with millions in their pockets. Each has their own entrepreneurial journey filled with highs and lows, before becoming successful business tycoons with the knowledge and experience to back their decisions in the Den.

From telecoms and retail to fashion and social media, these Dragons have built significant empires over the years. With the 23rd series of Dragons’ Den currently airing, we take a look at who’s sitting on top when it comes to wealth and success.

Peter Jones (£1.2bn)

An original Dragon since Series One aired in 2005, Peter Jones started his entrepreneurial journey at the age of 16 by selling personal computers. However, in his twenties, he lost £200,000 after selling the business to IBM. This resulted in him also losing his home and cars, and having to move back in with his parents.

But this setback didn’t stop Jones from becoming the richest angel investor still in Dragons’ Den – rebuilding his fortune through his telecommunications business, Phones International Group, and later expanding his empire with investments in media, retail and technology.

In February 2026, Jones and his investment group acquired golf retailer American Golf, though financial details have not been released. He is estimated to have a net worth of £1.2bn, according to Hello! Magazine.

Notable investments by Peter Jones:

• Wonderland Magazine – £100,000 for 50%
• Kirsty’s – £65,000 for 30%
• Bare Naked Foods – £60,000 for 50%
• Reggae Reggae Sauce – £50,000 for 40%

Duncan Bannatyne (£500m)

Another original Dragon and known for his no-nonsense approach to investing, Duncan Bannatyne’s first foray into the business world started in his twenties when he bought an ice cream van. Since then, he’s gone on to build a multi-million-pound empire, with successful ventures in health clubs, spas, hotels and care homes.

Bannatyne left Dragons’ Den in 2015. One year later, he revealed in a post on X that he had sold all his investments from the show and now owns a chain of health clubs, spas and hotels under the “Bannatyne Health Clubs” brand. In Glasgow’s Rich List for 2024, his net worth was estimated at £500m.

In December 2025, Bannatyne acquired Beechdown Health Club in Hampshire for an undisclosed amount. A month later, he acquired the Clarice House hotel and spa.

Notable investments by Duncan Bannatyne:

• The Wand Company – £200,000 for 30%
• Chocbox – £150,000 for 36%
• Kirsty’s – £65,000 for 30%

Tej Lalvani (£390m)

Tej Lalvani is the CEO of the UK’s largest vitamin company, Viabiotics, which was founded by his father, Karter Lalvani. Born in India and raised in London, he learned all of his leadership skills from working in the family business. After completing his studies in business and taking on various roles within Viabiotics, he was named CEO in 2015.

During his four-year stint on Dragons’ Den, Lalvani used his expertise to invest in a number of fledgling health and wellness firms. Today, he continues to run Viabiotics, which saw its annual sales reach $36m in 2025. Private equity firms Bain Capital and Blackstone have also emerged as leading contenders to acquire the company. In 2022, The Sun estimated his net worth at £390m.

Notable investments by Tej Lalvani:

• Look After My Bills – £120,000 for 3%
• TEA+ – £75,000 for 50%
• War Paint For Men – £70,000 for 12%

Theo Paphitis (£290m)

From starting a school snack shop at 15 to owning a £300m retail group, Theo Paphitis has become one of the biggest names in retail entrepreneurship. Today, he is the leader of some of the most successful brands on the UK high street, including Ryman, Robert Dias, and Boux Avenue. Paphitis became a Dragons’ Den investor in 2005 and remained there for eight years before leaving in 2012 (although he returned as a guest in series 17 and 18).

Paphitis is also a passionate advocate for SMEs, supporting entrepreneurs through initiatives like Small Business Sunday (#SBS), which he runs on social media. In May 2025, he launched the Theo Paphitis Dyslexia Bursary, providing fully funded training for teachers and teaching assistants to better support students with dyslexia. Further funding rounds are expected to open in late 2026.

Outside of business, Paphitis is a dedicated football fan and previously owned Millwall FC between 1997 and 2005. According to the Sunday Times Rich List 2020, he is worth an impressive £290m.

Notable investments by Theo Paphitis:

• iTeddy – £140,000 for 40%
• Magic Whiteboard – £100,000 for 40%
• Value My Stuff – £100,000 for 40%
• WedgeWelly – £65,000 for 25%

Touker Suleyman (£200m)

After being inspired by his father to start a business, Touker Suleyman first began his entrepreneurial journey selling crimplene garments for his grandmother. He eventually formed his own manufacturing company – Kingsland Models – supplying clothing to brands like Topshop and Dorothy Perkins.

Suleyman became a Dragons’ Den investor in 2015 for the show’s 13th series, alongside Nick Jenkins and Sarah Willingham. Today, he owns the Hawes & Curtis and Ghost brands and was awarded the Drapers Lifetime Achievement award for his 50-year career in fashion. In 2015, The Sunday Times listed him at 637th in its Rich List, estimating his fortune to be in excess of £200 million.

Notable investments by Touker Suleyman:

• Liquiproof – £100,000 for 50%
• Tru-Tension – £75,000 for 30%
• Bad Brownie – £60,000 for 20%

Nick Jenkins (£150m)

While only on the show for two series, the Moonpig founder was a notable investor in Dragons’ Den – backing businesses with strong online potential and offering valuable ecommerce expertise to aspiring entrepreneurs.

Apparently named after his own nickname at school, Jenkins founded the internet greeting card business, Moonpig, in 2000, before later selling the company for around £120m just over ten years later.

Despite leaving the show in 2017, Jenkins still invests in startups, offering his expert advice on customer service, business management, sales and more. His net worth is estimated to be around £150m.

Notable investments by Nick Jenkins:

• Cocofina – £75,000 for 20%
• The Snaffling Pig Co – £70,000 for 20%

James Caan (£100m)

Not to be confused with the late American actor, James Caan first joined Dragons’ Den in 2007 and remained on the show for the next four years. Born in Pakistan, Caan moved to the UK as a child. After working for various recruitment companies, he started his own recruitment business in the early 1980s. Caan later founded Alexander Mann in 1987 with minimal capital before selling it in 2002, which had a £130m turnover at the time.

Nowadays, Caan is a prominent British entrepreneur, investor and philanthropist with a career spanning over four decades. He is also the founder and CEO of Hamilton Bradshaw – a London-based venture capital firm. In 2023, his net worth was estimated at £100m.

Notable investments by James Caan:

• Rapstrap – £150,000 for 50%
• Chocbox – £150,000 for 36%

Steven Bartlett (£71m)

Aside from being the youngest Dragon to date, Steven Bartlett is now also famous for his Diary of a CEO podcast and his role as the co-founder of social marketing firm Social Chain (now Social AG), which we featured back in 2016 in our Young Gun series, as well as his work in the digital marketing and entrepreneurship sectors.

Bartlett joined Dragons’ Den in 2021 and continues to appear on the show. In 2024, he was involved in controversy for his investment in “Ear Seeds”, an acupuncture product that falsely claimed to cure chronic fatigue syndrome, which he has since distanced himself from.

But his portfolio is wide-ranging, and he has also invested in several Startups 100 companies, including PerfectTed. In 2025, MoneyWeek estimated his net worth to be £71m, and The Sun reported that his company Steven.com is worth £320m.

Notable investments by Steven Bartlett:

• Kimaï – £250,000 for 3%
• Luxe Collective – £100,000 for 3%
• PerfectTed – £50,000 for 5%

Piers Linney (£69m)

Linney began his professional career in law before moving on to investment banking. He then launched his own internet business in 2000 before co-founding Outsourcery in 2007, which became one of the UK’s first cloud services providers. 

Linney joined the Den in 2013 but announced his departure two years later in order to focus on other projects. Since then, he has pivoted into machine learning. He co-founded Implement AI in 2023 and has advocated for the AI Action Plan on LinkedIn.

In December 2025, Linney was awarded an MBE in the King’s 2026 New Year’s Honours List for services to SMEs. As of 2023, Linney’s net worth is reported to be £69m.

Notable investments by Piers Linney:

• Wonderbly – £100,000 for 4%
• Skinny Tan – £60,000 for 10%

Deborah Meaden (£50m)

After graduating from Brighton Technical College, Meaden started her first business in Italy at 19, selling and exporting glass and ceramics. While the business failed after 18 months, Meaden went on to build a successful career in leisure and retail. She is also a keen advocate for sustainability and has invested in numerous green-focused Startups 100 firms, including Bold Bean and Fussy.

Meaden joined the Den in 2006, taking over from Rachel Elnaugh in the show’s third series. Over the years, she has invested in 37 businesses, totalling around £2.64 million altogether. In 2024, Financhill estimated her net worth to be £50m. 

While Meaden has recently been accused of sharing “anti-Semitic” posts on X (formerly Twitter) criticising Israel and US President Donald Trump, the BBC has dismissed these complaints.

Notable investments by Deborah Meaden:

• Magic Whiteboard – £100,000 for 40%
• GripIt – £80,000 for 25%
• Omni – £75,000 for 2%

Sara Davies (£37m)

Sara Davies’s business journey started whilst studying at university in 2005 when she noticed a gap in the market for a tool that could create custom-sized envelopes for handmade cards — inspiring her to launch her Crafter’s Companion business. Davies sold 30,000 units of her “Enveloper” product within six months, and by the time she graduated, her business was turning over £500,000.

Davies joined Dragons’ Den in 2019, being the youngest female investor on the show. However, after selling Crafter’s Companion and buying it from administrators, Davies announced her departure from the Den to focus on her own business. As of January 2025, her net worth is estimated to be around £37m.

Notable investments by Sara Davies:

• Yuv Beauty – £250,000 for 2%
• Thrift+ – £150,000 for 10%
• Myomaster – £100,000 for 10%

Final thoughts

When it comes to pitching your business, it might seem obvious to go for the person with the biggest bank account.

But it’s not all about the money. Instead, the right investor should bring more than just cash to the table – they should offer expertise, experience and a network that can help your business grow. 

While a large financial backing is important, having an investor who genuinely believes in your mission and can offer the right guidance can make all the difference in the long run.

To discover more about how to find the right investor, check out our directory of the top venture capital funds in the UK.

It’s been two years since Gary Neville was mocked for taking mini-retirements on a business podcast.

The football pundit attracted eyerolls when he spoke of the benefits of choosing many shorter two-day breaks over retirement. Many said he had simply “discovered holidays”.

Now, though, mini-retirements seem to be gaining traction among SME owners. Is flexible working changing our attitudes to career breaks?

What is a mini-retirement?

“You can never really retire if you love work and you are relentless, but what you can have is mini-retirements during the year,” Neville explained to Steven Bartlett on the Diary of a CEO podcast in 2023.

“This weekend, I’m going to Spain, Friday ‘til Monday morning. I call that the mini-retirement,” he continued.

“That’s a weekend.” Bartlett responded, likely echoing many of our own thoughts on the concept.

In some ways, though, the idea has proved attractive to business owners. While Neville’s approach emphasises short, frequent breaks, one expert says that many entrepreneurs are using mini-retirements as intentional career pauses before their next venture. 

“Micro-retirement offers a valuable opportunity for reflection and reinvention”, says Aman Parmar, Head of Marketing at BizSpace, a provider of flexible workspaces for SMEs. ““After selling a business or reaching a financial milestone, [entrepreneurs] use micro-retirement to travel, upskill or experiment with new projects before committing to their next big move.”

After years of hard work, selling a business can leave owners uncertain about their next move. A mid-career break offers the chance to step back, reassess goals, and return with renewed clarity.

For those planning their next chapter, mini-retirement might simply be a new way to describe a smart exit strategy.

Are ‘mini-retirements’ another Gen Z work trend?

While career breaks are not a new phenomenon, mini-retirements seem to be growing in popularity among the younger generation of entrepreneurs — known as the quarter-life gap year.

A shift has occurred from an old-school ‘work hard, retire later’ approach to the more ‘work smart, live now’ philosophy of Gen Z and Millennial business owners. It’s out with the grind, and in with work-life balance. Instead of delaying the gratification of retirement after decades of labour, younger entrepreneurs prefer to enjoy their life throughout by taking breaks.

This change is fuelled by a growing awareness of burnout and the redefinition of success beyond just financial wealth.

“Many Gen Z and millennial entrepreneurs see financial independence not as a final destination, but as a tool to design a career on their own terms,” adds Parmar.

Luckily for the younger generations, they have the resources to make career breaks feasible with flexible working arrangements.

Parmar continues, “Rather than disconnecting entirely during micro-retirement, many former business owners are choosing to stay engaged through coworking spaces.

“[Flexible working is] a perfect fit for the exploration and experimentation that emerging entrepreneurs are wanting to take on during periods of micro-retirement.”

Should career breaks be a beige flag?

Once considered a ‘red flag’ on your CV, it seems that both entrepreneurs and employees are now embracing the benefits of taking time off mid-career.

As many as 28% of 18-24 year-olds have already taken a career break. This reflects a broader shift in UK work culture towards flexibility. As the younger generation rethinks the traditional career path, a gap in the CV is becoming the norm.

Employers may need to adapt by no longer viewing them as a ‘red flag’ but as opportunities for employees to recharge, gain new perspectives, and return with fresh energy.

Sorting the office bins may be outside most workers’ immediate job descriptions. But SMEs may need to start paying more attention to recycling, as new guidelines have been put in place from today.

The set of rules, called Simpler Recycling, requires firms to separate their waste from March 31. It’s part of a larger initiative to boost recycling across the country, reduce waste, and work towards a more sustainable culture.

The announcement has gone over many business owner’s heads. Below, we’ll walk you through the new rules — including who’s exempt — so that you can remain compliant.

What is Simpler Recycling and what does it mean for businesses?

Simpler Recycling is a new set of government guidelines that requires workplaces to separate their waste and recycling.

The rules apply from March 31 for most businesses. It’s not just offices; all organisations are responsible, including those in hospitality, healthcare, and places of worship.

As many as 76% of businesses are unaware of the new rules, so here they are, in case you missed the announcement.

The guidance requires businesses to separate waste into three or four categories:

• Dry recyclable materials (plastic, metal, and glass)
• Food waste (fruit and veg scraps, lunch leftovers, coffee grounds, etc.)
• Black bin waste (everything else)

It’s nothing technically new if you’re already a seasoned recycler. It’s just now become a legal requirement for businesses to separate their waste. Bosses should also train staff on the importance of waste separation and how to do so properly.

What are the penalties for not following Simpler Recycling?

While there are penalties for not following the Simpler Recyling’s guidelines, no one is going to jail if they throw an apple core in the paper bin.

However, if your company does not comply with the new requirements then, from today, you are at risk of being slapped with a compliance notice from the Environment Agency.

The exception is micro-businesses, which have an extra two years before recycling becomes a legal requirement.

If your business employs less than ten full-time employees, you fall into the category of a micro-business. This means you have a little more time to get your recycling up to scratch before the deadline in March 2027.

But nothing is stopping you from getting ahead of the curve (and Mother Earth will surely thank you).

Why you need to care about simpler recycling

While recycling rules may not be the most pressing item on your agenda, following the guidelines is important for both compliance and your business’s reputation.

That’s not to mention the real reason behind why we should be recycling. Recent research of 1,000 UK office workers found that each person could charge a mobile phone 13 times with the amount of energy generated by their lunchtime food waste. That’s a lot of discarded meal deals.

So, rather than seeing this as yet more red tape, see it as an opportunity to clean up your office and strive for a more sustainable business — and all in time for Earth Day on April 22.

While the Employment Rights Bill (ERB) is currently under review in the House of Lords, significant changes are already set to take effect from tomorrow, April 1. This “once-in-a-generation” legislation will affect payroll, so it’s important to stay informed.

You can expect to see increases to minimum wage and employer National Insurance Contributions (NICs), as well as changes to parental leave and pay.

Below, we’ll outline the upcoming changes to help you prepare for the week ahead.

Minimum wage rise tomorrow (April 1)

Starting tomorrow, April 1st, there will be significant changes to the National Living Wage (NLW) and the National Minimum Wage (NMW).

The NLW, for employees over the age of 21, will increase to £12.21 per hour.

Meanwhile, the NMW will increase to £10 per hour for workers aged 18-20. For those under 18 and / or undertaking an apprenticeship, the rate will rise to £7.55 per hour.

Be sure to review your payroll run process in line with these changes to stay compliant.

Employer NICs increase (April 6)

Some businesses hoped that the Spring Forecast would halt plans to increase National Insurance Contributions, but the proposed plans will roll ahead on April 6.

As Chancellor Rachel Reeves announced in last October’s budget, employer NICs will rise from 13.8% to 15% as of April 6th. In addition to that, the secondary threshold at which employers must start paying NICs will drop from £9,100 to £5,000 until 2028.

To mitigate the impact of these changes, there are also changes to the employment allowance underway. This allows employers to reduce their overall NIC liability.

The allowance has previously helped employers save £5,000 per year, but from April 6, eligible employers can save up to £10,500. The £100,000 eligibility threshold for claiming the allowance will also be lifted, meaning more firms are set to benefit.

Changes to parental leave and pay (April 6)

Reforms to parental leave and statutory pay will also take effect this Sunday, April 6.

First, let’s examine the updates to pay. Statutory maternity, paternity, adoption, and shared parental pay will increase from £184.03 to £187.18 per week.

Additionally, the lower earnings limit — the weekly earnings threshold required to qualify for these payments — will rise from £123 to £125. However, the threshold for receiving maternity pay remains unchanged at £30 per week.

From April 6, parents with babies admitted to neonatal care can claim up to 12 weeks of paid leave. To be eligible, parents must be employed for a minimum of 26 weeks and earn at least £123 per week before claiming.

Statutory neonatal care pay will be paid at the same rate as other family leave payments, £187.18 per week. The additional pay and leave is in addition to any maternity, paternity, and shared parental pay that parents are entitled to.

The measure is expected to help 60,000 new parents support their families without having to worry about using annual leave.

Changes to statutory pay (April 6)

From April 6, there will also be changes to Statutory Sick Pay (SSP) and Statutory redundancy pay.

There will be a £2 increase to SSP from £116.75 to £118.75 per week. As with statutory parental pay, the lower earnings threshold for claiming sick pay will also rise to £125 per week.

There are additional changes to sick pay incoming. The proposed ERB may allow all employees to claim either 80% of their weekly earnings, or the flat rate, whichever is lower, regardless of their income, from the first day of sick leave.

Employers should take special note of the upcoming changes to statutory redundancy pay. In terms of redundancy pay, April 6 will see the cap on “a week’s pay” to calculate statutory redundancy pay rise from £700 to £719. This rate also applies to the additional award of compensation for unfair dismissal.

The change coincides with many businesses planning to make job cuts this year amid the tough economic climate. Those faced with making redundancies could also be met with increased costs, so should consider this when financial planning.

Limit on tribunal awards goes up (April 6)

The last of the changes coming into force this week relates to the limits on awards of employment tribunals.

From April 6, the maximum limit for compensatory awards for unfair dismissal will rise from £115,115 to £118,223.

Meanwhile, the minimum basic award for select unfair dismissals, including health and safety dismissals, will increase from £8,533 to £8,763.

Since these changes can be a lot to digest, businesses can get help with ensuring they remain compliant by outsourcing HR help from a third-party provider. It may be a wise move, with additional changes on the horizon as the full ERB comes into effect.

In the end, it could only go one way. We had been warned that today’s Spring Statement would be more of an update rather than much-needed reform or spending commitments. Still, some SMEs hoped the Chancellor, Rachel Reeves would have a change of heart on previously-announced tax hikes, like the rise in employer National Insurance (NI).

Those hopes were dashed earlier today, when the news came that the Office for Budget Responsibility (OBR) has halved growth forecasts for 2025 from 2% to 1%. Then, confirmation that the employer NI rise, reduction to business rate relief, and higher National Living Wage (NLW), will all go ahead.

With nothing new to chew on, the reaction to the statement from UK SMEs has largely been one of exasperation. Kevin Fitzgerald, UK MD, Employment Hero, the payroll platform, says that Reeves’ statement “missed the mark”, adding, “the increase in employer NICs alone will cost businesses £900 more annually per employee on a median wage.”

2025 Spring Statement: key updates at-a-glance

Below, we explain the key points that business leaders should know from today’s Spring Statement, with analysis from financial experts and SME leaders.

1. Planned tax rises to go ahead

No Hail Mary on NICs, then. From 6 April 2025, employer NICs will rise from 13.8% to 15% for salaries over £5,000. The threshold for contributions will also drop to £5,000 annually.

There had been hopes for another increase in Employment Allowance, but the Chancellor appears to have said all she is willing to on the change. The new rate will hit payroll bills for small businesses, and there are already warnings it could lead to job cuts this year.

In April, the NLW will also rise to £12.21 per hour for workers aged 21 and over, putting additional pressure on businesses in sectors like retail, hospitality, and care.

Ben Gatenby is owner of 1st Defence Locksmiths, a trades business based in Leeds. Gatenby tells Startups he’s concerned about the impact the rises will have on profits.

“The upcoming tax increases are worrying because they eat into already tight margins”, he reveals. “As a small locksmith business, any extra costs soon add up. It makes it harder to reinvest in better tools, training, and advertising.”

2. Business rates relief set to be slashed

With no announcement to the contrary, it looks like the planned reduction in Business Rates Relief from 75% to 40% (a move announced in the previous October Budget) will go ahead from April 1.

The change is expected to more than double the average pub’s rates bill, causing concern within the hospitality sector. Experts are now pushing for Whitehall to expedite its planned overhaul of the business rates system, which was dealt a significant blow last week.

Andy Fishburn is Managing Director at Virgin StartUp. Fishburn describes the reduction in Business Rates Relief as “a temporary fix with no forward thinking”.

“This is a huge blow and worry for many of the small business owners in our Virgin StartUp Community,” he adds. “The slash in rates relief will have a detrimental effect on businesses that are already struggling and need support now more than ever.”

3. Crackdown on tax avoidance

The government confirmed new measures aimed at increasing tax fraud prosecutions by 20%. It’s estimated that the change will raise approximately £7.5bn in additional revenue.

Tax avoidance is technically legal and helps reduce tax liabilities, while tax evasion refers to breaking the law. However, the Chancellor has pledged to crack down on both.

The plans include investing in more compliance staff for HMRC and leveraging technology to detect tax fraud more effectively. HMRC has previously been criticised for trading in its support team for AI customer agents, resulting in a dismal wait time of 23 minutes.

4. Tax thresholds remain frozen

Despite a viral petition to raise the Personal Tax Allowance, no changes have been made to UK tax bands, which will remain frozen at their current levels until 2028.

It could be worse. There had been rumours that the Chancellor would extend the cap until 2030 in her Spring Statement. Thankfully, though, this threat has not materialised.

5. Consumer spending forecast to fall

As well as the Chancellor’s Spring Statement, the OBR also released its latest economic forecast today. It predicts that real household disposable income is forecast to rise by 1.7% this year. That represents a drop on the 3.9% growth recorded in 2024.

B2C businesses, take note. If consumers have less extra money to spend this year, this means shops, restaurants, and other customer-facing sectors will likely see a fall in sales.

Businesses should adjust their sales forecast now and review pricing strategies. Lowering prices might sound counterintuitive, but it could be necessary to keep customers loyal. In our survey of 531 SME leaders, we found that 16% of thriving businesses attributed their success to strong customer relationships (the highest of any response).

6. Welfare reforms

Ostensibly in a push to get people back to work, the Government also today announced a raft of welfare reforms including stricter Personal Independence Payment (PIP) criteria and reduced Universal Credit support for those with health conditions.

In her announcement, Reeves said the changes will help to address rising unemployment figures. Government statistics reveal that 270,000 employees aged 16-34 are already economically inactive due to long-term sickness and mental conditions.

However, critics argue that reducing support for those on long-term sick leave is unlikely to create a productive and healthy workforce. Forcing individuals with genuine long-term health conditions back into work without adequate support can worsen their conditions, leading to increased absenteeism, decreased productivity, and potential burnout.

Katharine Moxham from Group Risk Development (GRiD), the industry body for the group risk sector, comments: “Cuts impact those who are vulnerable in our society, and workers with health conditions or disabilities need support now more than ever.”

Business leaders say ‘stop the blame game’

Last year’s Autumn Budget was the Chancellor’s first fiscal event. Blasted by critics as the ‘anti-business budget’, Reeves blamed many of the policies it introduced (most of which were confirmed today) on a budget black hole inherited from the previous government.

She’ll need a better line of defence this time around. Gina Miller, Founder of MoneyShe, an investment platform, tells Startups it is “disappointing that the Chancellor has lacked the courage to introduce radical but fairer reforms”, arguing that the Government’s hemming and hawing is causing confidence among business owners to weaken.

“”The Chancellor has stated that growth is her number one mission — yet today offered little evidence of a clear plan or strategy to achieve it,” adds Miller. “You can’t keep blaming the last 14 years; there must be a compelling vision for the future to restore confidence.”

There will be some who are just relieved that the statement didn’t have more trapdoors for employers; a ‘no news is good news’ line of thinking. But that outlook can’t hold for long.

Many businesses have already put major investment decisions on hold, expecting that today would bring economic clarity. Instead, they now face another six months in limbo.

While many associate April with a copious amount of chocolate eggs, it also marks the end of Q4; a time for firms to set new goals and prepare for the start of the next financial year. 

That makes this Easter season a prime time for businesses to look into networking opportunities. Whether it’s attending casual events, setting up coffee chats, or just reaching out to existing contacts, networking opens doors to new collaborations, partnerships, and ideas — all of which can help businesses set up for a strong start this quarter.

We’ve compiled a list of over 50 business events happening across 13 UK cities this April. All of them are free to attend and provide great opportunities to connect and collaborate.

As the debate continues on working from home versus returning to the office, Parliament is collecting evidence about the real-world impact of flexible work on businesses — and your small business could have a say.

A newly-formed parliamentary committee is calling for UK organisations and workers to submit their views into the impact of remote and hybrid working. The findings could potentially guide policy-making and make a difference in future working models.

You have one month to share your views with the committee before the April 25th deadline. We’ll explain how to put your views forward, below.

Parliament calls for evidence on flexible work

An official call for evidence into the impact of flexible working was announced earlier this month by the House of Lords Select Committee on Home-based Working.

The committee is exploring the impact of remote working on workers and employers, as well as wider economic consequences. The aim is to build a deeper understanding of home-working, separate from sensationalist headlines. Major findings from the committee may even influence future government policy.

Commenting on the inquiry’s launch at the start of March, Baroness Scott, Chair of the Committee, said, “Since the pandemic, remote and hybrid working have become increasingly important for large parts of the UK workforce, with around 40% currently estimated to work from home at least some of the time.

“We are interested in examining the [effects] including wellbeing and mental health outcomes, productivity levels, and the wider impact on the UK economy.”

Research efforts are already in full swing, with the committee having held two meetings with large employers so far. On Monday, the conversation focused on company perspectives on remote and hybrid working.

Remote work debate heats up

Widespread return-to-office (RTO) policies have planted a seed of change for many businesses. Boots, Salesforce, and THG are some of the big names that are demanding workers shun home-working for full-time office attendance.

Baroness Scott adds, “[Remote and hybrid working] have become a hot topic more recently amid calls in some quarters for workers to return to the office.”

Reasons for the mandates include fostering stronger team cohesion and collaboration, a desire for an ‘office-first’ culture, and better in-person productivity. Today’s tough economy means bosses are also nervous to keep a closer eye on output.

Conversely, remote working also has its proponents. It provides substantial cost-savings for employers and employees, while also promoting a healthy work-life balance. Additionally, flexible working can broaden the talent pool beyond geographic restrictions. For parents, it can give time back to balance childcare with their careers.

Still, it’s not for everyone. Gen Z graduates have expressed a preference for working in the office to combat feelings of isolation and to improve networking opportunities.

Startups data suggests that a blend of working from home and the office could provide the best of both worlds and SMEs are embracing a hybrid model.

The Government has previously shared the sentiment that flexible working is the way forward. It’s been touted as a potential solution to presenteeism and as of 2024, laws were introduced to support employees requesting flexible working arrangements.

But the findings from this inquiry into home-working could alter Whitehall’s stance.

How to make your voice heard

If you’d like to submit your experience to the committee, you can do so before 10am on 25 April. The final report will be published on November 30.

Beforehand, you should carefully read through the questions posed in the Call for Evidence. If you have answers, you can submit your perspective to the online portal.

Submissions should be under 3,000 words and include an introduction and your reason for responding to the inquiry. If you have any difficulty using the portal, you can also respond via email, social media, or post.

We recommend that SMEs take advantage of this significant opportunity to directly influence the national conversation on RTOs.

By contributing real-world experiences and data, SMEs can move beyond the often-sensationalist headlines and provide nuanced, practical insights that facilitate a more balanced and effective approach to flexible working now and in the future.