Another day, another independent designer stolen from For designers and ecommerce businesses, unique designs are the lifeblood of their business; and may say this is under threat. Written by Helena Young Published on 21 October 2025 The protests of ecommerce business owners and small designers that their work has been copied are becoming increasingly common.In fact, some businesses are claiming that the rip-offs are produced so quickly and sold at such a low price that it could see their business go to the wall.However, as the headlines prove, not even trademarks are providing complete protection against ecommerce giants.Imitation gameIn this past week alone, a Norfolk-based designer has been speaking to BBC News about her exhausting fight with Chinese ecommerce behemoth, Temu, to get them to take down imitations of her designs.Louise Banham, who co-owns Rustic Warehouse Norfolk, has contacted the press after battling for months to get Temu to remove designs from its website that mirrored her own.Banham said that she contacted Temu to notify them about each copy; but as soon as one was removed, another would appear from a different seller.The imitation game is having a stark financial impact on many businesses. BBC News reported in January from a business in York, which claimed to have lost out on £100,000 of sales due to online design theft.Big businesses, including fashion names, are also being impacted, claiming that fast fashion ecommerce ventures like Shein are ripping off their designs as soon as they appear online.While Temu claimed to have “set up a specialised system dedicated to the protection of intellectual property (IP) rights and an associated reporting structure,” it seems the copying is happening faster than the policing.Business owners add that there is also a loss of reputation to contend with. Some customers can come to the mistaken conclusion that the products being sold by UK makers are, in fact, made in China, imported and then given inflated price tags.The importance of IPRegistering your intellectual property is a key way of getting some protection. Whether a trademark or patent, this must be done separately from registering your business.The process can take around 3-4 months from application according to the government website.Trademarks, which tend to be logos or symbols representing a company, are published in the UK Trade Marks Journal once passed. Patents, in contrast, are used to protect a business’ creations and offer the exclusive right to make, use, or sell that invention for a set period (usually around 20 years).There are also copyrights, but these don’t need to be registered and protect original literature, artwork, music, photography, software code and even website content. These have also been the target of copying or harvesting outcries – with AI as the culprit. What rights do you have?While there are a host of legal wrangles ongoing against Temu, Shein, and their ilk, for most SMEs or makers, it is not good news.Etsy has offered its sellers some protection by creating a filter that took down any products that were also listed on Temu. However, this has proved problematic with some genuine listings also being impacted.The first recourse for UK businesses is to monitor the ecommerce sites or use a third-party service specialising in marketplace monitoring.If a copycat product is spotted, the business owner must make a complaint to the platform and ask for the design to be taken down. However, as the news reports suggest, knock-off products are appearing as quickly as they are being taken down.There are legal resources if this fails including cease-and-desist notices; but this is an expensive route to take. IP rights are also harder to enforce cross-border.Instead, businesses need to be on top of registering their IP and meticulous in managing their manufacturing and distribution channels. Ultimately, the biggest protection is customer loyalty and their faith in the quality of products your business produces. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
What does the AWS outage mean for Making Tax Digital? The AWS outage has left experts questioning whether reliance on a single third-party could spell disaster for HMRC's increasing digitalisation. Written by Helena Young Published on 21 October 2025 HMRC was among the many organisations that were down for a significant amount of time yesterday as Amazon Web Services (AWS) was hit by a huge internet blackout.Anyone trying to log into the Government Gateway from around 9.30am to file a tax return or check their tax details received an error message. There were also issues reported for the GOV.UK portal.The outage comes as the Government pushes ahead with its implementation of Making Tax Digital, which will mean that there soon won’t be an offline way for firms to file tax returns.What was the outage and who did it impact?According to AWS, the global outage was caused by “DNS resolution issues” which were initially picked up in the US. Such issues are caused by a computer or device being unable to translate a URL into an IP address, preventing users from accessing the internet.However, the impact quickly spread globally as AWS is the world’s largest cloud computing provider. As such, it caused problems for a diversity of organisations in the UK including gaming platforms; banks, fitness services (like Peloton). Naturally, Amazon’s Alexa, Music and Prime services were also down.By around 8pm, Amazon reported that most services were “seeing significant recovery”.How were SMEs impacted?With key services inaccessible, many businesses were forced to stop operations. This is because AWS powers much of the infrastructure behind many websites.However, it was also so disruptive because some of the organisations that businesses rely upon – including Barclays, Halifax, Lloyds and the Bank of Scotland as well as HMRC, Xero, Canva and Klaviyo – were also impacted.Natalie Ormond, owner at ecommerce venture Smallkind, said her small business is reliant on Canva and Klaviyo, which are both powered by AWS.She said: “As a company of one, I’m heavily reliant on tools like these for design, email marketing and all sorts of essential tasks. I couldn’t run my business alone without them. They’re fantastic for small businesses but when they don’t work it’s a bit scary.”Simon Jones, Chief Operating Officer at VP MED Group, added that the outage will have hit businesses hard if they were trying to access banking for staff salaries or other payment. Call for back upsThe incident has raised questions as to whether it is wise for businesses – and governmental organisations – to be reliant on one provider.As Jones asked: “It was only in August of this year that another outage caused severe network congestion between Cloudflare and that (same) AWS facility. This is a recurring theme between the two behemoths of online security and cloud-based web services. Are we too reliant on them for online business and finance services?”Outages of this nature could also prove even more disruptive as we move rapidly towards the MTD. From 6 April 2026, self-employed individuals and landlords with annual business or property income over £50,000 must:Keep digital records of their income and expensesSubmit quarterly updates to HMRC using MTD-compatible accounting softwareFile an end-of-year finalisation statement (replacing the current tax return process)This will then be rolled-out to self-employed individuals and landlords who earn between £30,000 and £50,000. Both will be brought into MTD by 6 April 2027; and those earning over £20,000 annually following a year later.While business owners will frantically be playing catch up today; they should also be asking some big questions. Among these must be, whether they have a back up plan. As Hanna Basha, Dispute Resolution Partner at leading law firm Payne Hicks Beach, says this outage is “…a timely reminder that it’s not if but when.”The incident also raises concern as to whether the institutions that so many SMEs are dependent upon should rely on centralised services over which they have no control. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Pubs to get £440k to broaden services amid closures The fund has been launched to help local pubs expand their services -but is it just a drop in the barrel? Written by Helena Young Published on 21 October 2025 The Government has announced £440,000 in funding to help local pubs “broaden their services” and stay at the heart of their communities.The move comes after a bleak year for UK pubs and their patrons. Earlier this year, data showed that nearly 300 pubs have shut down across England and Wales between 2024 and 2025, leading to an estimated 4,000 job losses. Rising costs, staff shortages, and hiked business rates have left many pubs circling the drain. So while the new funding is a welcome gesture, it may be too little, too late.After years of damaging financial decisions, many might feel this gesture barely scratches the surface of the challenges Britain’s once-thriving pub culture is currently up against.What will the £440k be used for?The Department for Business and Trade (DBT) has pledged £440,000 in support for UK pubs via the non-profit organisation, Pub is the Hub, which has already helped hundreds of village pubs expand into multi-purpose community hubs. Pubs can use the fund to support projects like community cafés, village stores, post offices, or play areas. Pub is the Hub has already identified more than 40 pub projects currently stuck in limbo due to a lack of funding in its Social Value Report.The scheme will benefit both pubs and their communities, by fostering stronger connections, increasing employment, while also giving pub owners an extra income stream.So far, the fund has attracted a positive reaction, with trade bodies praising the initiative as a lifeline for rural pubs, particularly those hit with soaring energy bills and staffing shortages.Nick Mackenzie, CEO of Greene King and Co-Chair of the Licensing Taskforce, who slammed hospitality business rates earlier this year, commented:“Our pubs are more than bricks and mortar where people eat and drink – they are places where people come together for all occasions and celebrations, they offer local employment and careers for people of all ages and can help in tackling loneliness. “Additional access to funding and less red tape is some welcome news to help pubs continue to adapt to meet the needs of their local communities.”Why pubs are still closing in record numbersAlongside the praise, some industry members remain sceptical. The announcement follows criticism of the Government’s treatment of the sector after another year of record closures.In 2024, around 300 pubs closed permanently, with independent and family-run venues hit hardest. And the causes are depressingly familiar. Rising employer National Insurance contributions and steep energy bills have sent overheads spiralling, while the ongoing effects of the cost-of-living crisis have meant that customers are spending cautiously.While industry leaders welcome the fund as a positive step, many might consider it a drop in the ocean. What pub operators should knowSmall village pubs offering, or planning to offer, community services will be eligible to apply for the scheme. The money can be used for equipment, refurbishment, or expanding services, such as adding a café, shop, or parcel collection point.Detailed guidance should follow soon, but applications will likely be managed by local councils in partnership with Pub is the Hub.While the fund offers some short-term relief, pub owners and hospitality leaders say that lasting change will require deeper structural reform in the upcoming Autumn Budget, particularly around business rates, tax relief, and energy costs. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Chancellor plots boost for employee share schemes Rachel Reeves is reportedly planning to make it easier for small firms to offer share options to employees in the upcoming budget. Written by Helena Young Published on 21 October 2025 The chancellor is reportedly assembling a support package aimed at entrepreneurs and small businesses ahead of November’s Autumn Budget.The package is expected to include expansion of the Enterprise Management Incentive (EMI) scheme, and other investment-friendly tax incentives.It’s a welcome bit of news that signals the government may prioritise growth and innovation for startups in the upcoming statement. SMEs have been waiting anxiously for updates as the date approaches.What the government is planning for startupsLast week, Sky News reported that the government has proposed to raise the cap on EMIs ahead of the Autumn Budget, which is set to take place on November 26.The EMI scheme is a tax-friendly plan which allows startups to sell shares to employees. It can motivate teams to feel truly part of a startup’s mission, while also offering attractive tax benefits.Currently, the cap is set at £250,000 over a three-year period, and applies to businesses with assets of £30m or less, and fewer than 250 employees.The proposed EMI reform would increase the £250,000 cap to allow scaling firms more flexibility to sell shares. It would also simplify rules around eligibility and some admin requirements which might currently put some startups off.The reform would also make EMI more accessible to a wider range of businesses, not just early-stage tech companies.How are business leaders reacting?Regarding the proposal, Louise Jenkins, Managing Director at Alvarez & Marsal Tax, praised it as a positive sign the government is prioritising SMEs.“The proposed expansion of the Enterprise Management Incentive scheme is a welcome signal that the government wants to champion small and medium-sized enterprises.Extending the EMI cap would give growing businesses greater flexibility to attract and retain talent at a time when wage pressures and higher borrowing costs are already squeezing margins.“If the government’s aim is to foster a more entrepreneurial economy, the focus should be on simplification as much as generosity; many small businesses still find existing EMI rules complex and administratively burdensome.”That said, the run up to the budget so far has been less positive for small businesses. It’s been a difficult year for SMEs following tax rises and employer National Insurance increases.And despite promises for swift reforms, it remains unclear if previous pledges to “fix” business rates by the Labour party will be followed through with on November 26th. Why this matters for startup foundersA stronger EMI scheme and broader tax reliefs have the potential to make hiring, retaining, and motivating top talent that much easier for startup founders. This offers a crucial advantage in a tough funding environment.With venture capital still tight and borrowing costs high, incentives that ease the pressure on cash flow are as valuable as ever.Founders should keep an eye on the Autumn Budget in the next few weeks, and be ready to review their existing EMI structures with an accountant or tax advisor if details are confirmed. Even small tweaks to share schemes can make a big difference in attracting and keeping the right people.But while reforming the EMI scheme would be a welcome boost for founders, it’s far from the most urgent issue on the table. UK businesses will be looking for deeper, more immediate measures in the budget to ease costs and unlock real growth. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Cafes, pubs, and bars hit by AI search rollout, finds data Research shows that website traffic has plunged following the arrival of AI search, with the hospitality industry worst affected. Written by Helena Young Published on 21 October 2025 Recent data shows that UK website traffic growth has experienced a dramatic 86% drop since the introduction of Google’s AI-powered search.The Google AI Search Shift Report, by digital marketing and PR agency Tank, analysed data from 800 firms across 16 sectors. It compared website traffic growth before and after Google AI Overviews (AIO) and AI Mode to identify which industries are most and least affected.For online businesses, particularly in ecommerce, a decline in website traffic can have a devastating impact on sales and overall business growth.Interestingly, among the sectors most affected, the hospitality industry stood out, demonstrating that the effects of AI-driven search aren’t limited to online businesses; local service sectors are feeling the impact as well.What the data reveals about AI search’s impactThe report showed an overall traffic collapse, with growth falling from 26.3% to 3.7% YoY since the launch of AIO.AIO now answers user queries directly on Google’s homepage, offering an aggregated response of the results. While it’s far more user-friendly, answering questions in seconds, it’s not as60% of searches now end without a click.AIO now answers user queries directly on Google’s homepage, providing an aggregated summary of results. It’s faster and more user-friendly, giving users what they need in seconds, but it’s also driving the rise of so-called “zero-click searches.” These occur when users find answers without ever clicking through to a business’s website.In effect, Google is drawing on publishers’ content to enhance its own service while diverting traffic away from the very sites it sources from, a move that’s sparked controversy among businesses that depend on web visits for sales and growth.According to the report, the hospitality sector is the hardest hit, with overall website traffic growth slowing at a rate of 54.7% YoY.Fashion and travel have also been majorly affected by the rise of AIO, while IT has remained relatively stable, with only a 0.6% difference in growth YoY.Across all industries, websites have 11.1% fewer ranking pages after the launch of AI search. Whereas the previous year saw ranking pages increase by 13.4% on average. This indicates that websites also have fewer opportunities to appear in search results altogether.What it means for businessesWhile fewer clicks mean lower discovery for businesses that want to attract new customers via Google, there is an upside. AIO can help qualify purchase-ready leads.Martin Harris, head of digital at Tank, commented, “[AI search is] great for the user who can now find what they need more quickly, but it could spell trouble for businesses who rely on ranking pages for traffic, clicks and conversions.”“There is a silver lining: while fewer users are landing on websites overall, those that do are likely to be more interested in your business and product – and therefore, more ready to buy.”To bounce back from potential web traffic loss due to AIO, small retailers should respond by auditing products to appear in AI overviews with a GEO strategy.They can also build trust signals by spreading online coverage across platforms like social media or customer review sites or by scoring media mentions. It’s also a great time to start experimenting with channels such as paid search or social media, to offset traffic dips. Hospitality feels the sharpest declineIn another blow to an already struggling hospitality sector, cafes, pubs, and bars’ websites have seen the largest decline in organic traffic since AIO. This is in addition to existing stresses, such as post-Budget job losses and exponentially rising costs throughout the industry.Local search queries, such as “best pub near me”, are easily answered by AI, meaning users no longer need to trawl through search results to find the answers they’re looking for.While it’s great for pubgoers to find their new favourite haunt, it’s not ideal for small businesses who may see a decline in website visitors.If you’re an owner of a cafe, pub, or restaurant, make sure to keep your Google Business profile and reviews up to date, and maintain a healthy presence on multiple platforms to mitigate the impact of AIO on new customers discovering you.AI search isn’t killing visibility entirely, but it’s important to move with the times and adapt your digital strategy to stay in the loop. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
How to know your numbers like you’re going on Dragons’ Den After last night’s Dragons’ Den episode, financial strategist Laura Linden explains how to actually know your numbers when pitching. Written by Helena Young Published on 21 October 2025 Financial literacy isn’t a common skill. We’re not taught it at school or college and (being proud and British) money isn’t something we talk about over the dinner table. It’s no wonder we see business owners crumble when under questioning on the BBC TV show Dragons’ Den. The good news is, if you’re preparing to pitch to investors, you don’t have to be a maths whizz to know your numbers. You just need to prepare for what you’re going to be asked. 1. Know where your numbers come fromYou can be spectacularly good at what you do, and you could have an amazing product or service. But if you don’t know your numbers, and you can’t answer the Dragons’ questions, they’re not going to invest. Investors want low risk with high return, which means they want a business owner who knows how to manage their money, a company with a proven track record of not wasting cash, and the potential for growth and healthy profits. If you’re going to show them that you’re a good investment, you’ve got to know your numbers inside out. You do that not just by memorising and regurgitating the figures but by understanding why you achieved those numbers. Take time before your pitch to truly understand what the numbers mean and why they happened. Look at your revenue, your gross profit, and your operating profit. Be able to talk about your forecasts and how you plan to achieve them, in detail. Work with an advisor beforehand if you need help understanding it all.2. Put yourself in their shoesAn investor’s goal is to make money. So they’re not going to partner with anyone where they don’t think they’ll make a return on their investment. Put yourself in their shoes; why should they trust you? You’re effectively asking them to take a massive punt on you and your business, so you’ve got to see it from their perspective. With so much at risk, it’s exactly why investors are famous for asking difficult questions. You need to be able to defend all your business decisions, the good ones and the bad, and prove that you can run your business in a responsible way. While you’re getting to grips with your numbers, think about what jumps out. Any anomalies that are likely to raise questions are the ones you need to prepare for alongside the basics of knowing how much revenue and profit you’ve made.3. Be confident, not cockyNo founder is going to have a perfect understanding of their numbers, and investors are aware of this, but if you go in there with confidence, you are more likely to win them over. They don’t expect a perfect history with no hiccups or bumps in the road, that’s not realistic. What they expect is confidence in the decisions you have made and an ability to defend them without being arrogant. If you’ve made mistakes along the way, own them and explain what steps you’ve taken to make sure they haven’t happened again. Dragons aren’t expecting perfection. If there’s no value for them to add to your business by partnering with you, there would be no point in them investing! If your answers are well prepared and you’re confident in your abilities, whilst knowing your limitations, they’ll see the story. Ultimately they’re buying into you as much as the business, so don’t put them off by being arrogant.4. Don’t pluck a valuation out of the airDragons know how to value a business so swanning in there with some absurd figures will put them off straight away and lead them to dig even further. Figuring out how much you need and the percentage you’re willing to give away isn’t a valuation, it’s wishful thinking. If you’re asking for £500k in return for 20% of your business, you’re valuing your business at £2.5m. Whether you’ve based it on current profits, expected profits or the assets of the business, you need to be able to back it up.These are astute business owners you’re talking to so don’t treat them like market traders haggling over fruit prices. Be honest with them and yourselves about what the business is worth. You’re asking them to take a risk, so make it worth their while.5. Don’t let the spotlight burn youAll investors are human. They know how nerve wracking it is to be in your shoes and they’ve all built businesses and made mistakes along the way. They’re there because they want to find investment worthy businesses; not to make a fool of you or trip you up. They’re asking you questions to give them confidence that you’re a safe bet so keep that in mind and try to keep your cool. All you’re trying to do is show them that the person to invest in is you, and the time is now, so take a deep breath and show them you’re the one. By Laura Linden Laura Linden is a financial strategist, Fractional CFO, and founder of Feisty FD, on a mission to take the fear out of finance and help women - and entrepreneurs. Her debut book UnF*ck Your Business Finances: Unlearn the Shame, Reclaim the Power and Change the Game is out on Dec 2nd. Learn more about Laura Linden Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Unicorn founders have four traits in common, finds report A new report has found that four specific founder traits consistently fuel unicorn growth - but what are they? Written by Helena Young Published on 21 October 2025 Four leadership traits consistently fuel unicorn-level growth regardless of the founder’s background or identity, a new report has found.The Inclusive Alpha Founder Report 2025 analysed 171 unicorn founders to discover what traits set them apart. It discovered that low neuroticism and inward focus, as well as high analytical thinking and assertiveness, are all shared by the most successful entrepreneurs.There is a stereotype that venture capital firms can favour the stereotypical Silicon Valley founder, typically white, male, and well-connected, leaving funding gaps for others. By recognising that behaviour, not demographics, predicts success, the report says we can support a more inclusive approach to backing future founders.What four traits define unicorn founders?To explore which traits truly define unicorn founders, separate from their background, Ada Ventures, a pre-seed inclusive venture capital firm, performed psycholinguistic analysis (LIWC) to study how unicorn founders think and communicate. A unicorn company is a startup valued at over $1 billion. Some UK-based success stories include Deliveroo, Monzo, and Revolut.Of the 159 measurable traits looked at in the report, only 18 were meaningfully different between unicorn founders. This indicates that successful founders share a common mindset. Across the founders studied, there was a clear trend: they scored higher on analytical thinking and assertiveness, and lower on neuroticism and inward focus.Analytical thinking reflects a logical, data-driven approach to problem-solving, and founders who rely on evidence and structured reasoning to make decisions. Assertiveness speaks to clear and confident communication, in addition to being able to take initiative and lead with conviction.In contrast, low neuroticism suggests maintaining emotional stability under pressure, staying calm and focused in the face of stress or setbacks. Meanwhile, lower inward focus indicates a tendency to look outward toward opportunities and action rather than overanalysing or relying too heavily on introspection.How founders can cultivate these traitsWhile some people may seem to exude natural confidence, these traits are less about being born with it and more about consistent practice. Future founders can intentionally work on developing a values-based leadership style in a few different ways:Work with a coach or mentor who can offer perspective, challenge blind spots, and help refine your self-awareness and decision-making.Lean on peers or founders’ networks to stay grounded, share challenges, and learn from others.Build small daily habits for reflection and growth. It might be journaling, feedback sessions, or regular pitch practice.These four traits aren’t innate; they’re learnable skills any entrepreneur can build. And as Ada Ventures’ report shows, the next unicorn founder might not look like the last, but they will likely share a similar mindset. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
New laws on sugary drinks to impact pubs, bars, and restaurants in England There are no more free refills, as of October, as rules change for the hospitality sector. Written by Helena Young Published on 21 October 2025 As of 1 October 2025, England’s “out-of-home” food and drink sector can no longer offer free refills on drinks with a high fat, sugar, or salt content (HFSS).This means that restaurants, cafés, pubs, bars, and takeaways that previously offered customers unlimited sugary drinks will need to remove this option from their menus or risk fines for non-compliance.The move is part of a wider government push to reduce the consumption of unhealthy drinks and their impact on public health and childhood obesity. Still, for many in the hospitality industry, already up against rising costs and staffing challenges, it’s yet another regulatory shift to adapt to.What are the new HFSS laws?Under the new laws, all HFSS drinks products can no longer be promoted with volume-based offers, such as multibuy deals, free refills, or buy-one-get-one-free offers on sugary drinks.The rules apply across England to all out-of-home venues, including hospitality outlets, cafés, and restaurants, as well as supermarkets, high street shops, and online retailers.For example, Nando’s popular free-refill policy is now limited to only zero-sugar options like Fanta Zero and Sprite Zero. Fans of full-fat Coke will now have to savour just a single glass.The legislation aims to tackle obesity and reduce the impact of unhealthy food and drink on public health. Each food and drink item has been assessed by the government using an external classification system to identify those affecting childhood obesity the most.In drinks, the worst offending culprits include sugary fizzy options like lemonade and cola. For food, items such as crisps, sweets, chocolate, ice cream, pastries, cakes, and even some fish fingers and pizzas will now be restricted under the new laws.A spokesperson for the Department of Health and Social Care described the restrictions as “a crucial step” in giving children a healthy, happy start in life.“Obesity robs children of the best possible start, sets them up for lifelong health problems, and costs the NHS billions,” they told the BBC.If you run a pub, restaurant, or bar that currently offers free refills or multibuy discounts on sugary drinks, head to the government implementation guidance for help on how to proceed with the new laws in mind.What will it change for pubs, restaurants?For venues, compliance with the new HFSS rules is a legal requirement. Failing to follow the regulations could end in enforcement action or fines of up to £2,500, though local authorities are expected to take a supportive, “work-with” approach before penalising businesses.In practical terms, operators may need to rethink how they design menus, price items, and run promotions. That may include axing free refills on sugary drinks, adjusting bundle offers, and updating digital menus and in-store signage to reflect the changes. From a customer experience POV, transparency is key. Make sure to clearly communicate the reasoning behind why you’ve removed a likely well-loved deal from your menu, to prevent your guests from feeling confused or frustrated. Though as health-conscious dining becomes more mainstream, the new restrictions may actually align well with changing consumer tastes for lower-sugar, lower-calorie options alongside alcohol-free alternatives. How hospitality operators can respondThe first step is to audit your current menu and promotions. Any volume-based deals on food or drinks that fall into the HFSS category should either be removed entirely, replaced, or reframed, for example, limiting refills to zero-sugar options or suggesting healthier pairings. Staff should also be briefed on the new rules and supported with clear talking points so they can handle customers’ questions on the changes. If you still want to offer deals, alternatives such as loyalty points, combo discounts on healthier items, or limited-time deals that promote balanced choices are all still on the table. By keeping menus flexible, transparent, and health-conscious, hospitality brands can strengthen their image and build long-term customer trust, showing that good business and better health can coexist. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
The essential cybersecurity checklist for UK small businesses Cyber attacks can cause both financial and reputational harm to small businesses. Our straightforward guide tells you the simple ways you can prevent them from happening. Written by Helena Young Published on 21 October 2025 Cyber attacks have been ramping up in 2025, with high-profile businesses like M&S, Harrods and Co-op all being hit. According to the government’s 2025 Cyber Security Breaches Survey, just over four in 10 businesses reported a cyber attack in the 12 months prior to June.If you’re running a small business, it’s tempting to think you might be too modest to be a target for cyber attacks, or you might just find the topic too daunting to address. But having strong cybersecurity is just as important to a business as adhering to GDPR compliance.Smaller businesses can be an attractive target for cyber-criminals as they can lack the resources and IT infrastructure to effectively defend themselves. The effects of a cyber attack on an SME could be devastating, both financially and reputationally. That’s why we’ve devised our simple, easy-to-follow, cybersecurity checklist to ensure your business is fully prepared. 💡Key takeaways Over 40% of small and medium-sized enterprises (SMEs) have experienced a cyber attack, with the average cost of a breach for a small business being £7,960.Your staff must be trained to identify phishing scams and use strong passwords, preferably made up of three random words.Key technical defences include implementing multi-factor authentication (MFA), using firewalls and anti-virus software, and ensuring all company software is set to update automatically.Protect your data using the ‘3-2-1’ backup rule: keep three separate copies of your data on two different types of media, with at least one copy stored off-site.You must have a clear action plan for data breaches; by law, certain incidents must be reported to the Information Commissioner’s Office (ICO) within 72 hours. Jump to: Why is cybersecurity awareness important? The actionable cybersecurity checklist How to respond to a data breach Summary Why is cybersecurity awareness important?It’s been noted that over 40% of SMEs have experienced cyber attacks. However, it’s not all doom and gloom, as encouragingly reported cyber breaches from small businesses have dipped this year, with the total figures dropping from 718,000 businesses in the UK in 2024, to 612,000 in 2025.It’s important to note the reason for this fall though: small businesses are starting to polish up their cyber hygiene. This year has seen a marked increase in small businesses undertaking cybersecurity risk assessments, cyber insurance and continuity plans that specifically address cybersecurity.So, the threats are still out there, it’s just that businesses are becoming more cybersecurity savvy: just don’t let yourself get left behind. It can be an often overlooked area when you’re starting your business, but one that you should consider and maintain consistently over time.According to the BBC, the average cost of cyber breaches on UK businesses is £7,960 for micro/small businesses, and £12,560 for medium/large businesses. For many SMEs in the UK, already struggling to manage their overheads, a blow of this nature could potentially cripple them. The actionable cybersecurity checklistTo make sure your business doesn’t end up as an unfortunate statistic on next year’s Cyber Security Survey, we’ve provided a breakdown of the three key areas that all small businesses should have in place:The human firewall: how to train your team and develop good habits.The digital defence: the technology that you need to be employing in your workflow.The safety net: your company’s data and how you can protect it.We’ll break down what each one entails, and what you need to do, below.The human firewallA company’s security is only as strong as its staff. Even with top-tier online protection, human error can result in cataclysmic consequences. This is how you can create a well-trained staff and develop good cybersecurity habits.Create strong passwords and have an efficient password managerWeak passwords that can be easily guessed are a major vulnerability and can give malicious entities access to your data. So get rid of any Password123s, pet names or birthdays. Guidance from the National Cyber Security Centre (NCSC) suggests you should use three random words.With multiple passwords for different accounts and devices, you should consider making things easier for your staff with a password manager – this a tool that allows you to store multiple passwords behind a master password.Use multi-factor authentication (MFA)Simply relying on a standard username and password as a login system is too weak, so you need to add a second “factor”, also known as two-step verification. This can be one of the most effective tools for preventing unauthorised access to your systems and is something all businesses should have in place.You should be using it across all your business-related platforms, whether it’s bank accounts, social media or email.Keep on top of access controlsAnother key vulnerability that’s often overlooked: which of your employees have access to what? Make sure you have a comprehensive view of access controls and your staff are restricted to what they need.Extra permissions should only be granted to staff who absolutely require it for their role.Train your staff on cybersecurityIf your employees are not up to speed on cybersecurity awareness, they can easily fall prey to phishing scams and harmful links. Phishing emails are a type of scam where individuals are deceived into installing harmful malware or giving out data.Make sure your staff are trained on spotting the signs of phishing emails, like poor grammar and urgent requests for money transfers. These types of scams are becoming increasingly more sophisticated, so make sure to regularly update your staff on what to look out for.You’ll need to develop a full cybersecurity training module for your business and encourage a company culture of cyber-literacy. You can find guidance from the government on cybersecurity training for your business.Encourage your staff to report security breachesDon’t punish your staff for falling victim to a phishing scam. Anybody can fall prey to an online scam and its far more beneficial to your business to create an environment where staff can feel confident about reporting lapses in security.Have a clear protocol in place, so staff know who to report to. If you believe a staff member was a victim of a phishing scam you should immediately change associated passwords and scan for malware.The digital defenceAlongside having a well trained workforce and solid internal infrastructure in place, another line of defence against cybercrime should be reliable and up-to-date technology.Always keep your software updatedOutdared software can leave you vulnerable to attacks and viruses. You need to make sure you’re regularly patching and updating all your software and systems.Exploitative and dangerous malware is constantly evolving, so you need to make sure your system has the latest protections installed. Make sure to keep all company devices set to “automatically update” where available, and don’t use old hardware that’s no longer supported by current firmware.Have anti-virus software and firewalls installedInstalling anti-virus software on all business devices is a non-negotiable. Most work equipment will come with anti-virus software pre-installed, but always check if this is case and make sure it’s been enabled.You’ll also need a firewall installed. A firewall is a network security system that monitors all the incoming and outgoing traffic. It allows traffic based around certain rules and is a must-have for your systems.Make sure you Wi-Fi network is secureMake sure you have a unique password in place for your work Wi-Fi and use strong encryption like WPA3. Make sure your physical servers are also secure and kept in a locked area with permitted access.Another key tip: make sure to change all the default settings and passwords upon setting up. You should also encourage your staff not to log on to public Wi-Fi hotspots. You can use the NCSC’s free cybersecurity checker tool to identify weaknesses in your IT.Keep all company devices secureWhether it be laptops, tablets or smartphones, you need to keep any hardware used for company purposes secured. You should do this by making sure all devices are password-protected, and all operating systems and downloaded apps are up to date.You should also make sure you have a stolen device policy for your business, so your employees know what to do if a device is lost or stolen. Make sure you also have the ability to track devices, as well as remotely lock or erase the device if it falls into the wrong hands.The safety netEnsuring effective data protection for small business is critical. If you suffer a security breach and leak customer information, this could result in irrevocable reputational damage, and potentially legal repercussions and fines.Use the “3-2-1” ruleOne of the most effective strategies for backing up your data, the 3-2-1 backup rule means keeping three separate copies of your data. The three data copies should be kept on two different devices, with at least one of the devices kept off-site. This ensures that you will have access to crucial data in the event of cyber attacks or other technical problems.Encrypt your dataWith increasing focus on cloud-based and remote working, you need to make sure your data has been fully encrypted. Encryption means increased privacy and prevents third-party’s from accessing it. You can use encryption software like Windows BitLocker to protect your data.Backup your data with cloud storageDon’t just rely on having physical copies of your data. You should consider using cloud-based storage to back up your data. Just make sure you have selected a provider with strong security protocols in place and a good reputation. It’s worth looking at the government’s cloud security guidance before choosing a provider.Be careful with USBsUSBs and other types of memory sticks and drives can be a convenient way of transferring data, but it only takes one malware infected drive to harm your entire network. You should encourage your staff to focus on sharing via cloud and email, and restrict use to only company-approved memory sticks.Properly dispose of old equipmentWhen getting rid of old, unwanted devices from the workplace never just throw them in the bin. You need to make sure all data has been wiped from the device before disposing of it. You can use software to delete the data or consider hiring a specialist. How to respond to a data breachBefore a data breach even occurs, the best thing is to have already created a clear, simple-to-follow action plan. Your plan should include step-by-step instructions, so you’re prepared for any type of data breach.The NCSC provides detailed guidance on what to include in your plan. You can also visit Cyber Action Plan to get a free personalised action plan, to help prevent cyber attacks on your business.If you’ve suffered a data breach, just remember to stay calm and don’t panic. First, you’ll need to identify the extent of the breach, then try to contain it. Determine what has happened, why you think you might have been (or still are being) attacked and assess the scope of the damage.Once the incident is resolved, you will need to report it to the relevant authorities and stakeholders. With certain incidents you’re required by law to report your cyber attack to the Information Commissioner’s office (ICO) within 72 hours.One action your business can take is to contact the Action Fraud website. This is the national fraud and cyber crime reporting centre and you can use their site to report the incident. They will be able to advise you on the next step to take.If you’re suffering from a live cyberattack, you can also contact Action Fraud by phone on 0300 123 2040. SummaryHaving strong cybersecurity is more than just about downloading the right software. Rather than flipping on a switch, it’s an ongoing process of developing good habits over time, gaining better understanding of your IT system, and determining the weak spots and danger areas.Get started todayWhile it might all feel a bit overwhelming, there are some immediate steps you can take to make sure you’re headed in the right direction. You should start by:Enabling MFA on your primary email account.Request your staff visit and complete the top tips section training from the NCSC.Check that your laptop, smartphone, and tablet are all currently updated with the latest firmware.Taking even these simple steps is an investment in the future of your business and is just as an important safety net as having the right business insurance. Cybersecurity might seem like a headache, but taking the right precautions now is far preferable to dealing with the fallout of an attack or data breach. Share this post facebook twitter linkedin Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Jeff Bezos says young founders should work before launching a startup The Amazon founder has recommended that younger generations gain work experience before starting their own companies. Written by Helena Young Published on 21 October 2025 Should you skip working your way up and launch a startup straight out of school, or wait until you’ve gained some ‘real-world’ experience? It’s a divisive question that Jeff Bezos himself has weighed in on.In a recent interview, the Amazon founder advised young founders, particularly Gen Z, to gain work experience before launching their own companies. He argues that time in the workforce will teach you valuable lessons.There’s a touch of irony, since Bezos himself famously started Amazon with a not-insignificant $250,000 investment from his parents. Still, his point raises an important question for budding entrepreneurs: learn the ropes, or dive in head-first?Why Bezos thinks work experience matters“I always advise young people: go work at a best-practices company somewhere where you can learn a lot of basic fundamental things [like] how to hire really well, how to interview, etc.,” Bezos told Italian Tech Week earlier this month, as reported by Fortune. “There’s a lot of stuff you would learn in a great company that will help you, and then there’s still lots of time to start a company after you have absorbed it.”He added that working for an established company, instead of immediately starting your own, “increases your odds” of success.Bezos’ point is that time spent at a well-run company offers a new starter a crash course in leadership, operations, and customer understanding. It’s a lower-risk environment to make mistakes and see how systems actually work, before you’re responsible for building your own.It’s worth remembering that Bezos has openly said he got a hefty investment from his parents to get Amazon off the ground. That said, even with family backing, professional experience, and an Ivy League education, he’s still had his share of missteps.Take the 2014 Fire Phone, for example; it ended up costing Amazon $170 million. His career shows that while no advantage guarantees perfection, gaining hands-on experience in a real-world setting can make a difference in knowing how to respond to setbacks.The Zuckerberg effectThen there’s the other path, the clichéd tech founder who didn’t even finish university, yet still went on to make billions. The stereotype was immortalised by Mark Zuckerberg, as depicted in The Social Network as a hoodie-wearing student who launched Facebook from his Harvard dorm. Fast forward to May 2025, and the Meta chairman is worth $221.2 billion, according to Forbes.His story, along with similar ‘college dropout’ trajectories such as that of Bill Gates and Steve Jobs, shaped the stereotype of the founder that is young, fearless, and untainted by corporate culture.It’s easy to be drawn in by this approach. Younger founders often bring energy, fresh ideas, and a willingness to take risks. Without years of ingrained habits or industry biases, they can notice opportunities that others might miss. And many would jump at the chance to skip the office and focus on their own project, but is it always the best route?Skipping the “real world” can mean a much steeper learning curve, potential operational blind spots, and a higher chance of burnout. Zuckerberg’s “move fast and break things” motto can be effective, but it loses its appeal when it’s your business or wellbeing on the line. Founders who worked firstMany successful entrepreneurs built their foundations elsewhere before starting their own ventures.For example, Airbnb co-founder Brian Chesky worked as an industrial designer after graduation, while Glossier founder Emily Weiss had a high-profile internship at Teen Vogue. Those experiences gave them insights that later proved invaluable.It’s also about building resilience. Early wins, like a solid degree or internship, boost your confidence to embark on bigger projects, while overcoming mistakes early on will help you bounce back from larger setbacks. Roles in startups, consultancies, or tech firms can help future founders develop practical skills, managing budgets, leading teams, and delivering value to customers.For Gen Z founders, it’s wise to pick a suitable “prep job” that offers insight into transferable skills like smart decision-making, leadership, and how to deal with clients.Ultimately, there’s no one-size-fits-all. Zuckerberg’s early start and Bezos’ post-30 leap show that routes to success can vary; and both cases show that having helping hands or financial backing certainly also doesn’t go amiss. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Why are UK entrepreneurs moving to Dubai? The co-founder of Revolut, has reportedly become the latest entrepreneur to leave the UK and become a tax resident in Dubai. Written by Helena Young Published on 21 October 2025 There are a host of countries offering perks for people who want the freedom to work and travel; but Dubai is becoming the destination of choice for UK founders to make home.The latest high-profile move is Nik Storonsky, the co-founder of Revolut. This week, it was reported that Storonsky has left the UK and now lists Dubai as his primary residence.While there are plenty of options for digital nomads around the world, the tax regime and luxe lifestyle in Dubai seems to be attracting high net worth individuals; as well as ambitious founders.Why are entrepreneurs leaving?The key reason for many, according to Forbes, is the Government’s decision to scrap special tax privileges for non-domiciled residents in April. The loophole allowed these residents (whose domicile or home is another country) to avoid UK taxes on overseas earnings for up to 15 years.In June, Bloomberg reported that the move had sparked an exodus of wealthy individuals from the UK. The news company analysed five million company filings and said that 4400 business leaders had disclosed an overseas move in the last year.It adds that the projected pace of moves could see the UK “lose thousands of jobs and as much as £12.2bn ($16.5bn) over the coming four years”.The Government, and some experts, are suggesting this is a gross exaggeration and official figures of the number of those who have left will be published in 2027. The Government says that, instead, the closing of the loophole will bring about £33bn in extra taxes.Startups magazine has also detailed the fall-out from the Government’s decision to increase capital gains tax (CGT) on the sale of business shares to 14% on their first £1 million of exit cash. This will rise to 18% in April 2026.Storonsky is Russian by birth but now holds dual British and French nationality. His issue is mooted to be the licensing issues he has faced in the UK when trying to win its UK banking license.What does Dubai offer?There are other European nations attracting disgruntled entrepreneurs – Cyprus and Monaco among them – but Dubai has a specific appeal.First of all, there is no personal income tax and corporate tax is also considerably lower than the UK. Businesses pay 9% tax on profits exceeding AED 375,000 (which is around £80,000). Dubai, though, has “free zones”, where the corporate tax rate is 0% on qualifying income.The state also offers a host of incubator and accelerator programmes, as well as a Golden Visa scheme for long term residence. This reflects Dubai’s bid to diversify away from fossil fuels into sectors like real estate, retail, logistics, and tourism. As a result, there is a burgeoning startup community with entrepreneurs attracted from all over the world.There are downsides to life in Dubai though. Says one founder in a LinkedIn post, the city can be hyper-competitive for jobs; has expensive office space; a lack of work/ life balance and the cost of education and health facilities can be very high for expat families. What are the tax implications of moving to Dubai?For founders considering a move, the paperwork from the UK tax side isn’t onerous, says barrister Patrick Cannon, who has a pretty negative view of life in the UK at the moment.Founders need to complete and submit the Form P85 online or can use the residence section of their tax return using the supplementary pages in Form SA 109.Once a resident in Dubai, founders will not be liable for UK income tax but they will be liable for any income “sourced in the UK”. Some income can be protected if covered by the UAE/UK Double Tax treaty.There are also implications for inheritance tax; but only if you have been a UK tax resident for fewer than ten years out of the last 20 years. If not, the usual UK taxation rules apply.If you are considering a move, reach out to a tax advisor for professional advice; and consider your plans for your business in both the short and long term to weigh up the benefits and disadvantages. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
What is an employment tribunal and how does it work? Employment tribunals can be complicated and costly for employers. We explain how the process works, what to expect and how to reduce the risk of a claim. Written by Helena Young Published on 21 October 2025 In the world of employment law, there are some issues that even the best human resources (HR) teams can’t fix. And sometimes, those disputes end up in a courtroom.Known as an employment tribunal, this is a judicial body that helps resolve disputes between employers and employees, such as cases of unfair dismissal, discrimination, equal pay and redundancy payments.Employment tribunals are a serious matter for businesses, as they often end in substantial financial costs, operational disruption and reputational damage.As a business, you’ll want to avoid employment tribunals as much as possible. However, it’s still important to understand what they are, how they work and how to prepare for them if you ever find yourself in this position.Below, we’ll explain everything you need to know about employment tribunals, including what’s involved, the type of claims employees make and how to avoid them altogether. 💡Key takeaways An employment tribunal is a legal body that resolves disputes between employers and employees.Employment tribunals cover a wide range of issues, including unfair dismissal, discrimination and unpaid wages.The tribunal process involves several stages, including early mediation, submitting claims and responses, case preparation and the final hearing.Employers should gather evidence, prepare witness statements and seek professional legal advice to prepare for a tribunal.Losing a tribunal can result in financial penalties, corrective actions and reputational damage for businesses.A positive workplace culture, addressing issues early and following fair procedures, can help reduce the risk of tribunal claims. What is an employment tribunal? How does an employment tribunal work? What happens at an employment tribunal? How to prepare for an employer tribunal Employment tribunal decisions How to avoid employment tribunals What is an employment tribunal?An employment tribunal is a legal hearing between employees and employers, responsible for resolving disputes around employment rights that can’t be resolved internally.Employment tribunals are run by the HM Courts & Tribunals Service (HMCTS), with hearings held by an employment judge.According to the government website, there were 37,000 employment tribunals in Q4 2024/25 – 30% of which were single claims, while 70% were multiple claims. Before the hearing can start, the employee must first contact the Advisory, Conciliation and Arbitration Service (ACAS), which offers early mediation to help resolve a dispute without making a formal claim.Why might employees make a claim?There are several reasons why employees claim in an employment tribunal. These include:Unfair dismissal: an employee’s contract is terminated without good reason or a fair process.Wrongful dismissal: an employer breaks the terms of the employment contract, such as failing to provide the correct notice period or pay.Constructive dismissal: the employer’s actions force the employee to resign.Discrimination: an employee claims to be mistreated due to age, gender, disability, race, religion, marriage/civil partnership or sexual orientation.Equal pay: disputes over the gender pay gap for work of equal value.Unlawful pay deductions: an employer deducts from the employee’s salary without consent or the legal right to do so.Unpaid wages: not paying the employee’s full salary, paying below the National Minimum Wage or not including holiday pay in the final wage slip.Redundancy rights: an employee claims pay for workplace redundancy, or challenges the fairness of a redundancy dismissal.Whistleblowing: an employee is treated poorly (e.g. demotion, termination, bullying/ostracisation, etc.) as a result of whistleblowing.Parental rights: an employer fails to meet the legal requirements for maternity and paternity leave.TUPE issues: an employer fails to follow the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) law, which protects employee rights when a business, or part of a business, is transferred to a new owner.Working time violations: asking the employee to work excessive hours, or failing to accommodate breaks and holiday entitlements. Law changes for employment tribunals Following the UK government’s Employment Rights Bill – which is expected to become law either in 2026 or 2027 – there are some significant changes that have been enforced in the employment tribunal process. They are as follows:The Employment Tribunal Procedure Rules 2024 came into force in January 2025, replacing the 2013 regulations. Key aspects include changing the wording from “shall” to “must” to place a clearer obligation on tribunals, adjusting deadlines that fall on non-working days (extended to up to midnight on the next working day) and increasing powers for tribunal staff to carry out jurisdictional functions.As of May 2025, employers are now required to submit the ET3 response in person, by post, or online via the MyHMCTS portal. These forms can no longer be submitted by email.From 6 April 2025, the compensation limits awarded by employment tribunals have increased. These increases include £118,223 for unfair dismissal, £8,763 for dismissal with a reason and up to £60,700 for “Vento bands” (guidelines to determine compensation for discrimination and whistleblowing cases), depending on the severity of the case.There are also further changes that the government wants to enforce under this law. These include:Unfair dismissal: the right to claim unfair dismissal is set to become a right from the employee’s first day of employment, removing the current two-year qualifying period.Time limits: the time limit for most employment tribunal claims is set to be extended from three months to six months.Firing and rehiring: dismissing an employee and rehiring them on worse terms is expected to become an automatic unfair dismissal in most cases.Protective awards: the maximum compensation award for failure to consult during collective redundancy is expected to double, from 90 days to 180 days’ pay. How does an employment tribunal work?Employment tribunals involve hearing from both parties to determine exactly what happened and applying legal tests to determine if a “relevant failure” (e.g. unfair dismissal, discrimination, etc) has occurred before deciding whether the employee’s rights have been violated.The possible outcomes of an employment tribunal can either be decided before a full hearing or after.If the tribunal decides not to proceed with a full hearing, the outcome could be:Settlement via ACAS: the claimant and respondent reach a voluntary, legally binding agreement through ACAS at any stage of the process, which is recorded on a COT3 form.Private settlement agreement: the parties involved agree to terms outside of ACAS and formalise the agreement with a settlement agreement, leading to the claim being withdrawn.Claim withdrawal: the employee decides to withdraw their claim, often because they’ve either found a new job, realised they have a weak claim or accepted a private settlement offer.Claim dismissed: the judge rejects the claim because it missed the deadline or is legally deficient.Default judgment: the employer fails to submit a response (ET3 form) on time, so the tribunal issues a default judgment in favour of the claimant.On the other hand, if the case proceeds to a hearing, the tribunal’s decision will either dismiss or uphold the claim. What happens at an employment tribunal?The process of an employment tribunal is designed to be straightforward and fair for both parties. Here’s what the process typically looks like and what you can expect. 1. Early mediationAs mentioned above, the claimant must first contact ACAS for early conciliation. They must inform them of their intent to make the claim, usually within three months (minus one day) from when the problem first arose.From there, an ACAS mediator will work with the employee to resolve the dispute without the need for a tribunal. The conciliation period can last up to six weeks.If a settlement is reached, it is recorded in a COT3 agreement. However, if there isn’t a settlement, ACAS will issue an early conciliation certificate, which includes a unique reference number that must be used to proceed to the next stage.2. Claim and responseThe claimant formally submits their claim to the employment tribunal with an ET1 form within the time limit. The tribunal then reviews the claim and, if accepted, a copy will be sent to the employer.Once you have received the ET1, you will have 28 days to submit your defence with an ET3 form. With this, you are expected to detail your version of events and why you are denying the employee’s claim. If you fail to respond to the claim within this time period, the tribunal may automatically judge in favour of the claimant. 3. Case management and preparationThis stage is all about preparing the case for the final hearing and is often where most cases settle. Here’s what you can typically expect in this phase:Case management orders (CMOs)Once both parties have submitted their documents, the employment judge will review them and issue case management orders (CMOs). Put simply, these are timetables and instructions that set out deadlines to complete specific tasks in the case – such as disclosing documents or witness statements – so that both parties are prepared for the hearing.Preliminary hearings (if applicable)In some cases, an employment judge may hold a preliminary hearing, which takes place before the main hearing. These are less formal than the main hearing and are often conducted via phone or video link.There are two types of preliminary hearing – case management preliminary hearing (CMPH) and preliminary issue hearing (PIH).A CMPH sorts out the practical details, such as setting deadlines for when documents need to be shared, deciding how long the main hearing will take and checking if any witnesses will be called. It also ensures the case is fully prepared for trial, and involves the employment judge issuing CMOs for both parties.On the other hand, a preliminary issue hearing (PIH) deals with any important legal issues that could affect whether the case goes ahead. For example, whether the claim was made in time, if the claimant was actually an employee or self-employed, if part of the claim should be struck out, or whether the claimant has a disability under The Worker Protection (Amendment of Equality Act 2010) Act 2023.Schedule of lossA schedule of loss is a document that details the financial compensation the claimant seeks from an employer’s unlawful actions. It also lists the specific types of losses the claimant has faced – such as wages, holiday pay and workplace pensions – and any supporting documents that prove the losses claimed.This helps the employment tribunal understand the full financial impact of the employer’s actions and determine the compensation owed.The employer can also provide a counter-schedule of loss to respond to the claimant. Its purpose is to dispute the amount of compensation the claimant is seeking (often by explaining why the figure is incorrect, too high or shouldn’t be paid). It also sets out the employer’s own calculation of what they believe the claimant is entitled to, which is typically lower (if anything at all).4. The final hearing and judgmentThe final hearing is either held individually by the employment judge, or with two additional lay members – one that represents the employer (e.g. a HR professional) and one representing the employee (e.g. a trade union representative). The final hearing can either take place in person or online.Here’s a breakdown of the typical process:Introductions of relevant partiesOpening statements from each party (each summarises their case)Both parties present their evidence by calling witnessesEach witness will be questioned (“cross-examined”) by each party’s representativeAfter all the evidence is presented, both parties make a closing statementAfter the hearing has finished, the tribunal will either state its decision on the day or issue a reserved judgment in writing shortly after. How to prepare for an employer tribunalIn the event of an employment tribunal, it’s crucial to be as prepared as possible. Here are a few things to consider:Take time to understand the claim: make sure to thoroughly review the ET1 claim to determine which elements are true and which will be denied.Gather the relevant documents: collect all the relevant documents, such as contracts, pay slips, emails and policies – even those that might not support your case. Organise the document bundle: this means arranging the documents in order of date, including a clear index, and creating copies for each member of the tribunal panel (e.g. the Employment Judge and your representative). Seek legal or professional advice: consider getting support from an employment lawyer, an HR consultant or a legal representative – especially if the case is complex or involves serious allegations like discrimination or whistleblowing. Choose witnesses: decide who should be your witnesses to support your defence. For example, if someone claims unfair dismissal against you, the dismissing manager would need to justify and give evidence as to why they made this decision. Prepare witness statements: any witness statements should clearly detail the witness’s version of events and cross-reference with any relevant documents. Make sure that they’re comfortable with what’s written, and that they’re fully involved in preparing their statement.Answer questions clearly: when the employment judge asks you questions, answer them directly and do not waffle. Also, be honest in your answers, including admitting when you don’t know the answer to a question. If you need to refer to a document to help you, simply ask to do so.Explain proper conduct to witnesses: inform witnesses that they mustn’t discuss the case in public areas (e.g. a local cafe or on public transport) so that sensitive information isn’t overheard. Also remind them to act respectfully and not to react loudly to evidence they disagree with (e.g. shouting or storming out of the room). Employment tribunal decisionsWhile there aren’t specific figures on how many tribunals are won by employers or employees, research by ACAS found that 77% of employment tribunal cases didn’t go on to have a hearing between January and March 2025. However, when hearings do take place, the tribunal will simply judge in favour of the employer or the employee.What happens if I win a tribunal?If you win the tribunal, the employee’s claim will be dismissed. This means that you will not be required to pay compensation to the employee or fulfil any remedies for them. However, keep in mind that the employee has the right to appeal to the Employment Appeal Tribunal (EAT) within 42 days of the written judgment. That being said, they can only do so if they believe the employment tribunal made a legal mistake – not because they’re unhappy with the outcome.What happens if an employee wins a tribunal?On the other hand, if the employee wins the tribunal, you will be required to take certain action. For example, paying the requested compensation, reinstating the employee to their job or making specific changes to your workplace. You will also have 42 days to appeal the decision.The consequences of losing an employment tribunal mean you’ll face financial losses, corrective non-financial orders, and potentially serious operational and reputational damage.The most common financial penalties include:Unfair dismissal: compensation is split into a basic award (e.g. statutory redundancy pay) and a compulsory award (e.g. for lost wages, pension, etc.). The compensatory award is currently capped at £118,223, or 52 weeks’ pay.Discrimination/whistleblowing: these awards are uncapped, so they can result in significant financial loss and include damages for “injury to feelings” (compensation for distress, anxiety and humiliation).Recoupment of benefits: you must pay back any state benefits (e.g. Jobseeker’s Allowance) the claimant received during their period of unemployment to the Department for Work and Pensions (DWP).ACAS code uplift: if you’re found to have failed to follow the ACAS Code of Practice on disciplinary and grievance procedures, the tribunal can increase the compensation award by up to 25%.Beyond financial penalties, preparing for an employment tribunal means that your HR team, managers and employees will have to focus their attention on the case, leading to disrupted workflows, reduced productivity and less employee engagement.Moreover, as employment tribunal hearings are generally open to the public, there’s a serious risk to your reputation – especially if the tribunal gets covered by the media. This can make it difficult to attract and retain talent, as well as damage customer retention and relationships. How to avoid employment tribunalsGiven how detrimental employment tribunals can be both financially and reputationally, it’s important to try and avoid them as much as possible. The obvious answer is to make sure you never put employees in a position where they need to take you to a tribunal. Therefore, you should follow these practices:Develop clear and fair policies: make sure your company policies — especially those around disciplinary action, grievances, discrimination and dismissal — are clear, consistent and up to date. This will help prevent misunderstandings and ensure fair treatment across the business.Foster a positive workplace culture: encourage open communication, respect and inclusivity in your organisational culture. When employees feel valued and heard, they’re less likely to escalate concerns or take legal action.Address issues early: tackle small problems before they turn into major disputes. This means handling complaints quickly, having informal discussions where possible and following your internal procedures for disciplinary matters.Seek professional advice: if you’re not sure how to handle a workplace issue, get advice from an HR consultant, employment lawyer or ACAS. This kind of professional guidance can help you make fair and legal decisions to reduce the risk of a claim being made against your business.Train your managers: your frontline managers often make decisions that lead to disputes, such as handling absence or performance. Therefore, you should provide them with regular training on employment law, conflict management and fair treatment to prevent costly mistakes.Document everything: make sure to keep detailed, accurate records of meetings, decisions, performance issues and disciplinary/grievance processes. This can help protect you if a dispute ever escalates, and shows that you acted fairly and reasonably.Encourage mediation: offer informal or formal mediation to resolve conflicts between employees, or between staff and management. An impartial mediator can often defuse tension and avoid legal action.Regularly review your practices: audit your HR processes and employment contracts to make sure they’re compliant with current employment law. This can change frequently, so staying up to date will help you reduce risk.ConclusionEmployment tribunals can be stressful, time consuming, and expensive for employers – both financially and reputationally. While sometimes unavoidable, most disputes can be prevented with fair treatment, clear policies and strong communication. This can help reduce the risk of claims being brought against your business.And if a tribunal does arise, being well-prepared and cooperative throughout the process can help you achieve the best possible outcome.Also, having a fair and supportive working environment isn’t just about avoiding tribunals, but building a more engaged workforce and a favourable reputation as a responsible employer. Share this post facebook twitter linkedin Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
What parenting together taught me about business partnerships Sleepless nights and those exciting first steps - business partnerships are a lot like co-parents, says Varun Bhanot. Written by Helena Young Published on 21 October 2025 Building a company with business partners is a lot like raising a kid with your life partner. Although the stakes are not the same, the base elements are very much alike.In the same way as co-parenting, a business partnership needs to be built on trust. You have to depend on each other during times of uncertainty, make decisions that affect the whole “family”, and (even when you are not totally in agreement) stay on the same level. The disagreements will always be there, but it is how you deal with them that will be the strength of the relationship. You learn the skills of expressing your thoughts, delegating tasks, sharing the responsibility, and providing each other with encouragement without losing sight of the common goal.There is also the aspect of roles. Each parent might handle different tasks depending on their strengths, but both are equally engaged in the child’s welfare. It’s the same in business.Yes, everyone is doing different things. But they’re also positive about the company’s growth in a way that warms and complements each other. The focus is not on workloads being shared in an equal manner. It’s the equal commitment that matters.One of the clearest similarities is the long-term view, which is necessary to create something that lasts. With children, it is about building virtues, supporting progression, and preparing them to face the world.With startups, it is about instilling culture, working on systems, and giving a product or service that can grow even after the founding team has left. In both situations, short-term wins matter a lot, but the final goal is to be sustainable and have an impact.We started MAGIC AI from zero. Like parenting, it took a leap of faith. And funnily enough, those early days were both messy, emotional, and full of surprises. There were times when we were lacking sleep, making high-stress choices, and doubting everything.However, I can say firsthand that when you get to witness those first indications of success, like a first product launch or customer, it is very gratifying. Not because the road was smooth, but because it was made by you, together. About Varun Bhanot Varun Bhanot is Co-founder and CEO of MAGIC AI, the cutting-edge AI mirror that makes high-quality fitness coaching more accessible. Under his leadership, MAGIC AI has raised $5 million in venture funding and earned multiple industry accolades — including being named one of TIME’s Best Inventions of 2024. As a new father as well as founder, Varun shares candid insights on balancing parenting and entrepreneurship in his bi-monthly guest column, Startup Daddy. Learn more about MAGIC AI Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
Co-op warns 150,000 jobs at risk without business rates reform Firms are shouting for business rate reform amid fears that the UK high street could suffer thousands of closures. Written by Helena Young Published on 21 October 2025 UK high streets face a critical moment, Co-op has warned, stating that without reform business rates will continue to cripple businesses.Citing new research, the supermarket giant is claiming that the UK could see 60,000 small shops and 150,000 jobs disappear if radical change doesn’t happen and fast.The company has launched a campaign called On Your Corner, In Your Corner, a key message from which is for the Government “…to finish the job and deliver maximum support to protect high streets and local communities.”Change essential for survivalThe Co-op study reveals the extent of the issue with 77% of small high street shop owners in England. It says that business rates reform is paramount if they are to continue operating.If reforms are not delivered, 10% of small high street business owners say they would need to lay off staff, and one in eight state that they would be at risk of closure.While the report takes in a wide range of high street SMEs, the overriding message of pessimism about the future and fear is one that the hospitality industry has been reporting for many months.The Co-op Big Survey revealed that 67% of those taking part believe their high street is dying and 78% say it’s worse than five years ago. With many of these businesses working in hospitality, it is unsurprising that this group has the lowest confidence of all sectors.Our research in January recorded a 10% dip in confidence among hospitality business owners; and since, fears have been compounded by job losses in this sector as the NICs hike and rising costs bite.Importance of local businessesAs well as gathering views from business owners, Co-op gauged views on the role local shops play within communities.It quotes YouGov research that reveals that 56% of UK adults – more than 30 million people – see local shops “as important to their wellbeing”. Without them, 74% of those interviewed argued that “…their community would lose part of its identity”.Shirine Khoury-Haq, Co-op Group CEO, said: “As we approach a critical Autumn Budget, there’s a real danger that the voices of small shops – and the communities they serve – are not being heard.”She added: “Local shops aren’t just businesses; they’re part of the social fabric of Britain. For some, a visit to a local store is one of the few chances they have to chat to someone and feel connected.” Waiting for the budgetThe report confirms that many SMEs, and especially those in the hospitality sector, are awaiting the Autumn Budget with bated breath.The Employment Rights Bill, and specifically changes to zero-hours contracts – are already in the headlines; but it is business rates that many businesses are hoping for some good news on. Co-op is calling for “maximum levels of relief” and argues that if high street businesses disappear, communities will too.However, the Co-op report says that seven in 10 Brits “…doubt the Government will deliver on relief”. As the November Budget approaches, this figure suggests that pessimism is quickly turning to despair. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
TikTok Shop launches £750k scheme for local sellers TikTok is hoping to give British SMEs a boost with a new scheme to encourage customers to shop locally. Written by Helena Young Published on 21 October 2025 TikTok Shop has today announced the launch of Shop Local, a support scheme to help British SMEs harvest demand for homegrown goods by using the platform to reach new audiences.The social media platform has become a go-to for SMEs with its easy to use features and the simple draw that it is currently growing four times faster than the overall ecommerce market.However, this latest bid to attract businesses sees the social media behemoth focussing on connecting them to their local customer base; and reflects a growing desire by Britons to support the businesses on their doorsteps.What is the ‘Shop Local’ support scheme?The scheme will see five local British businesses receive a support package worth £150,000 to get them up and running on TikTok Shop.It includes hands-on guidance from TikTok Shop experts to get started on the platform; mentorship for staff members on how to grow sales on TiKTok Shop and also training for the whole business on how to sell through TikTok LIVE.The winners will also get subsidised marketing support to get their products to the right audience; and Featured promotion across TikTok Shop to increase their reach.The scheme, which is being fronted by farmer, conservationist and TikTok star Jimmy Doherty, includes “introductions to TikTok creator” but also, interestingly, “PR and marketing support from TikTok to promote their business off-platform”.Timely supportThe scheme – which will no doubt be hotly contested – comes at a time when TikTok is reporting an increased desire by British customers to support their local businesses.According to data from Research Without Barriers 83% of UK adults would be more likely to buy British produce if it was more widely available. Three in four (75%) of respondents said that they prefer locally sourced products over imports.TikTok is hoping to tap into this swell of support by showing businesses how to use its platform to connect with – and retain – customers.Jan Wilk, Head of TikTok Shop UK, said: “We know that the current economic climate can be challenging for small British businesses, with many experiencing a mixed financial picture.“Smaller businesses don’t need huge followings or big budgets to be seen – if you have a great British product, the For You Feed is your place to shine and find viral success, with your products and businesses able to be discovered by millions.” How to get involved?To put themselves forward, SMEs must be a British business; and selling locally produced goods. There is no stipulation as to what these goods must be.However, businesses cannot already be trading on TikTok Shop and must have less than 250 employees.To enter, the business just needs to “create and share a TikTok video demonstrating their offering to their local community, which includes the #ShopLocalComp hashtag and tagging @TikTokShop_UK, between October 14 and November 13”, explains TikTok.The social media platform adds that the winners will be contacted by December 12.With all marketing, watching what lands views and translates to sales is essential; and this is easy even without a hefty financial pot from TikTok.For the businesses that don’t get selected, we have guides on how to get started with your TikTok marketing; including how to set up an account; what to post, and what metrics to watch. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
“More needed”: hospitality reacts to pub licensing review The Government is promising to cut through the red tape to keep hospitality firms open later; but many say they need more to thrive. Written by Helena Young Published on 21 October 2025 Measures to allow hospitality businesses to extend their opening hours and revive local nightlife are being pushed forward by the Government; but they are being met with both scepticism from within the industry and concern from without.The National Licensing Policy Framework being proposed by the Government will see sweeping changes to rules about dining outside (and managing noise complaints) as well as closing times.The framework has now gone to a consultation and businesses have four weeks to make their views known.What is the framework?The review is focussed upon “cutting red tape” and “boosting footfall” to boost the beleaguered hospitality industry and support the UK’s economic growth, says Prime Minister Keir Starmer.The Government describes the framework as “ a pro-growth vision for licensing reform” and says that it is a much needed update to the Licensing Act 2003 which has, “…over time, become diluted by disproportionate regulation and inconsistent application”.As well as rethinking details like the currently mandatory printed statutory notices for alcohol licenses; it also includes proposals to increase the number of temporary event notices venues can apply for; reforms to business rates and cuts to the cost of licensing.The news has been welcomed by the many in the industry. “Pubs are faced with continued rising costs, placing them under enormous pressures which is why the government must continue to back the sector, including critical reforms on business rates which would unlock opportunities for pubs to invest and help drive economic growth,” Nick Mackenzie, chief executive at Greene King, told BBC News.Independents need moreHowever, with the confidence levels in the hospitality industry tanking, some are arguing that reform needs to be more drastic.George Holmes, Managing Director of business finance experts Aurora Capital, says that cutting red tape for pubs is “a step in the right direction”. However, there are huge issues that need addressing.He explains “…longer hours won’t solve deeper problems. Pubs are still struggling with high energy costs, rising wages, and unfair business rates.” These problems are being felt across the board but, he argues, it is a time when many independent businesses fear the future.“If this government is serious about supporting local pubs, these changes should be accompanied by practical support, guidance, streamlined licensing processes, and fair funding for local authorities to handle applications. Without that, small venues will still be left waiting while the big players reap the rewards,” he states.Campaign for Pubs has reacted furiously stating that pubs don’t actually want longer operating hours as they simply can’t afford it.“The reality is that as a direct result of the Government’s disastrous cost hikes in the last Budget, many pubs have had to reduce opening hours and cut staff numbers and hours”, writes the organisation in a press release.“Allowing most pubs to stay open longer is completely meaningless, when already pubs are shutting earlier than usual just to reduce costs and stay afloat,” it states. Wider concernsDebate is also raging as to whether longer opening hours could have a negative impact on both antisocial behaviour and serious crime. In an article in The Guardian, Katherine Severi, the chief executive of the Institute of Alcohol Studies thinktank, said that the changes would “allow an open all hours free-for-all in the availability of alcohol”.“These proposed reforms, developed without adequate input from policing, ambulance services, local licensing authorities, health experts or citizens are a charter for chaos,” added Dr Richard Piper, the chief executive of the charity Alcohol Change UK to the newspaper.While some aspects of the reforms – notably cutting red tape and therefore administrative load on businesses – have been welcomed; there is an overriding feeling that this is not the complete solution.SMEs, in particular, are riding the storm caused by NICs hikes and rising costs. Opening for longer might not even be within their capabilities, nor organising live music events.While there is consensus that some of the suggestions could drive footfall and growth; this consultation period will also see many raising concerns from both within the industry and wider society. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
I started a business at 51 – here’s why it’s never too late After her son became seriously ill, Georgina Tang designed some at-home beauty products to help him. Soon, she realised she had a six-figure idea on her hands. Written by Helena Young Published on 21 October 2025 I started my beauty company YNNY Ltd by accident in 2014, at the age of 51. It was never the plan – I was just a mum who wanted to do anything I could to stop my son suffering.In 2013, my 10-year-old son Alessio was seriously ill with an autoimmune condition that was being treated with chemotherapy.The side-effects were awful – he developed psoriasis, his skin was cracked and bleeding, and his hair had started to fall out.Dermatologists prescribed steroid creams but none of them helped, so I decided to take matters into my own hands.I’d taken a free bath bomb course two years earlier and I’d gone on to learn how to make natural skincare and haircare products. I’d even started creating new recipes from my kitchen for fun.I had no idea then that my hobby would go on to relieve my son’s suffering and lead me to launch a successful beauty brand in my 50s.No products worked, so I made my ownChemotherapy can be devastating for people’s skin and hair. Because I’d learned how to make skincare products from all the courses I’d attended, I knew I needed to try and make something for my son.Within a month of using the shea butter balm that I made (now called Soothing Shea Butter) his skin was clear. It was life changing for him.From there I created a shampoo and conditioner to aid hair growth, as one night I found hair on his pillow that had fallen out. When people saw his skin and how good it looked, they started asking me what I was using, and so I started sharing the balm with people who were undergoing cancer treatments.Image: Georgina Tang and her son, AlessioI hadn’t ever considered selling it, I just wanted to help people. Several cancer sufferers have said how the products have made their treatment more bearable and, more importantly, helped them to regain their confidence.Meanwhile, I started learning more about anti-ageing products as I couldn’t find any effective, yet affordable ones, for myself. This led me to develop my Elixir serum.It wasn’t long before I realised I had a successful business on my hands and soon after that I took the leap of faith by leaving my well-paid, secure housing management job to work on the business full-time.How white-labelling works for meI developed my online shop to reach a wider target audience, as well as selling in craft fairs. But my big break came in 2017 when a well-known beauty training academy based in Liverpool asked me if I would consider selling my products for their treatments under a white label arrangement.Prior to that conversation, I had never heard of white labelling but I learned quickly. Six months later, my company provided and created three ranges of skin care products for them, selling across the globe.Since then, my company has become an established supplier of natural organic skin and hair products within the beauty industry. Not only do we sell products, we also offer bespoke natural formulations and a fulfillment service, storing, packing and shipping products to customers.I worked tirelessly to take my business to six figures and I now employ three members of staff at our headquarters in Cheshire. In the National Beauty Awards this year, my company won the Best Hair Product, Best Skincare Product and Best Beauty Entrepreneur awards – the only company to win three awards.My age turned out to be an advantageDon’t let age stop you from realising your dream. People worry that they are too old to start but age gave me resilience, life experiences, maturity and, more importantly, financial stability.By my 50s I had savings so I could take risks without worrying – and business does involve risks. It can also take longer to pay than you think.I ran my business as a side hustle for the first two years alongside my full time job, as it takes time to grow a business. But at that time, failure was never an option.Fear of failure will stop most people before they start but you need to stay positive, practical and realistic – plan carefully, trust in yourself and take the leap. By Georgina Tang, founder and CEO at YNNY Ltd. Georgina Tang, 62, is a multi-award-winning beauty founder with an extraordinary against-the-odds story. The mum-of-one is the CEO of YNNY Ltd, creating handmade vegan skin and hair care, including her Elixir anti-ageing serum. Georgina has white-label clients in Dubai, the US and Europe, and works with big brands and well-known faces to create beauty products. Learn more about YNNY Ltd Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
6 social media trends to jump on in October 2025 Social media never slows down, but we’ve got you covered. Check out the hottest trends this October and see how your business can boost engagement. Written by Helena Young Published on 21 October 2025 Social media trends come and go fast, and it can be easy to lose track of what’s popular right now and what’s old news.Plus, with how tricky social media marketing is, it’s no wonder brands are scrambling to keep up — trying to stay relevant while not sounding like they’re trying too hard. And while businesses have the opportunity to jump on posts around Halloween and pumpkin spice, the sheer volume of content around these themes can make it harder to stand out.That’s why we’ve done the research for you and pulled together six of the hottest social media trends to boost your online presence this month.1. Directed by Robert B. WeideSound: The Great Gig in the Sky — Pink FloydSlideshows and carousels have become the top format on TikTok lately, with engagement rate being over 81% higher than video content, according to research by Fanpage Karma.And right now, carousel posts that are “Directed by Robert B. Weide” are making the rounds on the platform, in reference to the director of the US TV comedy, Curb Your Enthusiasm.The basic premise is that a founder will share a photo from the early days of starting a business with a small goal in mind (e.g. wanting to sell 100 products), followed by the “Directed by Robert B. Weide” film credits. They’ll then share a more recent photo showing just how wrong or low that prediction was — such as evidence of them selling out their first product batch, or opening a retail store.This trend is a great way for founders and entrepreneurs to share their business journey in a personal and relatable way, celebrate their wins, and inspire others who are just starting out.Source: Hair Syrup (TikTok)2. Trust me I know ballSound: Plug Walk — Rich the KidMENTE MÁ (slowed) — Nakama & Mc StaffIf you’re not up to date with the latest Internet slang, the term “I know ball” basically means that someone is knowledgeable in a specific subject — the “ball” part coming from knowing a lot about ball sports like basketball or football.While this trend has seemingly come from nowhere, it has quickly taken off among TikTok users and businesses alike, with creators using it to show off their expertise or just to poke fun at people who think they know what they’re talking about.For businesses, this trend is a great opportunity to show industry know-how in a fun, relatable, or jokey way. Whether it’s a bakery business showing off its best-selling recipes, a fitness brand sharing training tips, or a marketing agency breaking down campaign results, the “I know ball” format lets you position yourself as an expert without sounding too serious.Source: Ryanair (TikTok) 3. Happy hoa hoa hoa seasonSound: Eyes on Fire — Blue FoundationWe don’t blame you if you’re confused by what “hoa hoa hoa season” means. Put simply, the “hoa hoa hoa” part is a reference to the beginning lines of Blue Foundation’s “Eyes on Fire” song. The trend itself is also a joke towards the Twilight saga and the moody and cold atmosphere of the movies.Hoa hoa season usually starts in October, when Autumn kicks in. For business accounts, this means a prime opportunity to leap into seasonal marketing, such as Halloween promotions and autumn-themed products that capture the cosy spirit of the season.Source: Fandango (TikTok)4. The lioness doesn’t concern herselfSound: Dreamer (Re-Original 7-inch Mix) — Livin’ JoyComing from the quote “the lioness doesn’t concern herself with the opinion of sheep”, the idea of this trend is that strong, confident individuals focus on their own goals, ambitions, and self-worth rather than worrying about negative criticism or irrelevant opinions.On TikTok and Instagram, people have been using this trend with content about personal growth, entrepreneurship, self-care, fitness or fashion — basically anything that’s about confidence and independence.And for small businesses — particularly female founders and women-led businesses — this trend is the perfect way to do exactly the same, or simply connect with their target audience on a relatable or personal level.Source: Give Me Cosmetics (TikTok)5. How to draw expressive eyesSound: Let Down — RadioheadThe “how to draw expressive eyes” trend is a simple carousel post, starting off as a step-by-step guide to drawing cartoon eyes, before jumping straight into a screenshot of an emotional scene from a movie or TV series. The purpose of this trend is to catch viewers off guard by turning a simple drawing tutorial into a nostalgic or emotional moment.Brands can put their own twist on it with humour, or by connecting the emotional moment to their products, services, or brand story. It’s a playful way to show personality while leveraging content that already resonates with audiences.Source: Currys (TikTok)6. Don’t worry if people don’t like youSound: Man I Need/Sweet Escape (mashup) — Olivia Dean and Gwen StefaniMotivational posts on social media aren’t new, but they’re still going strong today — giving both brands and creators the chance to build community engagement, share core values, and connect with audiences on a personal and uplifting level.The crux of this trend is simple. Using a mashup of Olivia Dean’s “Man I Need” and Gwen Stefani’s “Sweet Escape”, the videos display the text “Don’t worry if people don’t like you. Most people don’t like themselves”.It’s a simple format, but it’s become largely popular on TikTok. In turn, this allows brands and businesses to connect and relate with their customers while staying on-trend with music and formats that they already love.Source: Currys (TikTok)Social media moves fast, but your content doesn’t have to get left behind. Read our TikTok for Business guide to learn how to create posts that build real engagement. Share this post facebook twitter linkedin Tags News and Features Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
How to start a YouTube channel for your business Starting a YouTube channel can be challenging, but it’s not impossible. We share everything you need to know, from setting up to uploading your first video. Written by Helena Young Published on 21 October 2025 Since its inception in 2005, YouTube has evolved beyond a simple video-sharing platform. Today, it’s a powerful marketing tool for UK businesses, helping brands reach wider audiences, showcase products or services through engaging video content and build authentic connections with viewers.And thanks to platforms like YouTube, video marketing has become a favourite among users, with 82% of UK consumers purchasing a product after watching a brand’s video.But despite the advantages of having a YouTube presence, those starting a business may be discouraged from creating a channel, as they worry that it’s too complicated, time-consuming, or costly to produce quality videos.To help you out, we’ll walk you through the essential steps to kick off your YouTube channel – from setting up and creating effective videos to optimising your content and growing your audience – all without breaking the bank. 💡Key takeaways Having a YouTube channel can help businesses reach a wider audience, build brand awareness, improve SEO, and generate new leads or sales.The four most popular content pillars for YouTube are educational, demonstrations, engagement, and promotional.You should implement SEO practices on your YouTube channel by using keywords in your video titles, descriptions, and tags.Important YouTube metrics include Impressions, Impressions Click Through Rate (CTR), watch time, audience retention, subscriber gains, and demographics.Some free/low-cost video editing software includes DaVinci Resolve, CapCut, iMovie, ShotCut, and OpenCut. A popular video structure is the 5-minute script – hook, teach/core value, and call to action (CTA). 1. Plan your YouTube channel for business success 2. Set up your channel the right way 3. Get the essential gear on a startup budget 4. Create your first video 5. Get your content seen by the right people 1. Plan your YouTube channel for business successHaving a successful YouTube channel starts with a clear plan, not a fancy camera. For this, you’ll need to define your goals, understand your target audience, and decide what type of content will best showcase your brand and attract viewers.Define your “why”First, you need to determine why you want to start a YouTube channel.For example, marketing on YouTube can help increase brand awareness, generate more leads, educate customers to reduce support tickets, or simply showcase why your products/services are the best out there.You’ll also need to understand the difference between vanity metrics – such as views, subscribers and like count – with business metrics that actually measure success, like website traffic, lead generation, sales conversions, and customer engagement. This will help you see the real impact your videos have on your business, not just how popular they look online. Pinpoint your audience and nicheNext, you’ll need to think about who your content is for. Your target audience might be the obvious answer, but you should also narrow your focus and find your niche. The more specific your content is, the easier it is to attract the right viewers and stand out from competitors.For example, instead of creating general “business advice” videos, you could focus on “financial advice for UK freelance creatives”. This will help you build authority in your space and connect with an audience that truly values your expertise.Brainstorm your core content pillarsWhen creating content, variety is key. There are different types of videos for different purposes, whether it’s educating your audience, building trust, or just promoting your products. Here are four popular video formats that can help your business grow on YouTube:Educational: How-to videos or tutorials, answering the question that customers are typing into Google.Demonstrations: Showing your product/service in action by solving a real problem, or demonstrating its usefulness or value.Engagement: Behind-the-scenes videos or founder stories to help build trust and humanise your brand.Promotional: Testimonies or explainer videos that showcase customer success and your unique value proposition. 2. Set up your channel the right waySetting up your YouTube channel properly is the first step to growing your presence on the platform. A well-put-together channel makes a great first impression, helps people find you more easily, and shows viewers that you’re serious about your brand. Here’s a rundown of what you should do.Create a brand accountWhen creating your account, you’ll need to set it up as a brand account. This will allow your channel to have a different name from your Google account and let multiple people manage the channel without sharing personal login information.There are two ways to get a brand account – either by creating a brand new channel or by moving a personal channel to a new brand account. Method 1: Creating a new brand accountLog in with the Google account you want to be the owner of the brand account.Go to your channel switcher at youtube.com/channel_switcher.Click on + Create a channel.Enter a name for your new channel. This will also be the name of your new brand account.Follow the remaining instructions to complete the channel creation.Once you’ve completed the process, your channel will be automatically created with a new brand account linked to it.Method 2: Moving a personal channel to a brand accountSign in to YouTube with your Google account and go to youtube.com/channel_switcher.Click on + Create a channel and give it a temporary name (it will be deleted in the next steps).Go to youtube.com/account_advanced and look for the move channel to brand account option.Select the brand account you just created from the list of accounts to move your content to.Click Replace and then confirm the move.Define your channel’s brand identityOnce you’ve created your channel and brand account, it’s time to bring it to life with your business branding. This includes:Channel icon: You should use your logo here. Make sure it’s clear (e.g. not blurry or pixelated) and that your customers recognise it straight away.Channel banner/art: A large rectangular image on top of a YouTube channel that represents your brand and content, such as what you do and who for. A banner should be 2560 x 1440 pixels for the best display on all devices. Tools like Canva can help you create effective YouTube banners.The “About” section: Explain what your business is and your value proposition. You should also include keywords and a link to your business website to help with search visibility and allow potential customers to learn more.Consider essential settings and verificationThis includes your channel’s keywords, setting your location, and verifying your account.Much like with search engine optimisation (SEO) practices for your website, it’s equally important to use them for your YouTube channel as well.Using keywords in your video titles, descriptions, and tags will help the platform understand your target audience and your channel’s topic, in turn recommending your videos to the right people.Additionally, you should verify your account before uploading content. Doing so will let you unlock certain features such as longer videos, adding custom thumbnails, and live streaming. And finally, make sure to set your channel’s country to the UK, so that you attract the right viewers geographically. 3. Get the essential gear on a startup budgetRunning a YouTube channel doesn’t have to cost a fortune, and you don’t necessarily need expensive equipment or video software to create effective content. Here are a few simple tips to help you get started.Utilise your smartphoneYou might think you need to spend hundreds on a video camera, but modern smartphone devices are just as capable of recording good-quality video. A good rule of thumb is to film horizontally and with a clean lens, so that there aren’t any blurs or smudges in your video. You should also try to keep your camera steady to avoid shaky film. Consider investing in a smartphone tripod, or rest it on a stable surface if you can.Make audio quality a priorityEven if your video is high quality, poor sound will immediately turn off viewers. After all, a Google and YouTube survey found that 84% of viewers said they’d rather watch a video with clear audio and average visuals than a good-quality video with bad sound.You can ensure good sound quality on your video by:Getting the microphone close: Whether you’re using your smartphone’s built-in microphone or an external mic, you should keep it close to your mouth so that your voice is loud and clear, and less background noise is picked up.Treating your environment: Avoid large, empty rooms with hard surfaces. Instead, record in a small room with soft furnishings like carpets, curtains, or couches.Using a pop filter: If you’re using an external microphone, use a pop filter – an accessory placed between a microphone and a voice – to prevent harsh plosive sounds, as the bursts of air from “p” and “b” sounds can cause a jarring “pop” in your audio.Running a sound check: Before recording your video, do a short test recording and listen back on headphones. Make sure to check your audio levels to ensure the sound is loud and clear without any distracting noises or distortion.Make sure you get the lighting rightEven if you have the budget for an expensive video camera, getting the lighting right is crucial for a professional-looking video. Here are a few principles and techniques you should follow.Use soft lighting for direct-to-camera speakingSoft lighting minimises harsh shadows, making skin look flattering. For this, you can use a large light source (e.g. a window) or place a diffuser, such as a softbox or even a white sheet of paper, between the light source and your face.Utilise natural lightYou can do this by facing the window (as it acts as a single soft light), avoiding backlighting (e.g. having a bright window or lamp behind you), and recording during the time of day when natural light is at its softest and warmest.Invest in the right equipmentThe best equipment for effective lighting includes:LED panels: These are energy-efficient, don’t generate much heat, and allow you to easily control the intensity (brightness) and colour temperature of your lighting.Ring lights: Provide soft, even light from the perspective of the camera. Ring lights are also cost-effective, with some being available for under £20.Bounce cards: If you only have one powerful light (your key light), you can use a large piece of white foam board, poster board, or a white wall placed opposite your key light to reflect some of the light back onto the shadow side of your face.Use free or low-cost editing softwareYou don’t need to fork out a lot for video software either. Depending on your skill level and operating system, there are many options available for free or low-cost software. The most popular options are listed below.Software Operating systemKey featuresDaVinci Resolve (free version)Windows, Mac, LinuxIndustry-standard colour grading, advanced audio mastering (Fairlight), visual effects (Fusion), and exportation up to 4K resolution.CapCutMobile (iOS/Android), Desktop (Win/Mac), WebIntuitive interface, strong AI features (auto-captions, background removal), quick editing tools, and exportation up to 8K.iMovieMac, iPhone, iPadSimple, clean interface that is pre-installed and free on all Apple devices. Excellent for basic cuts, titles, and trailers.ShotcutWindows, Mac, LinuxA wide range of filters, effects, and format support.OpenShotWindows, Mac, LinuxUser-friendly, simple drag-and-drop interface, making it very easy for newcomers to learn basic editing, transitions, and titles. 4. Create your first videoNow that you’ve got all the essentials, it’s time to start recording your first video. This can feel intimidating at first, but it’s important to remember that you don’t have to do things perfectly the first time. However, to get the best possible results, we’d recommend the following tips.The 5-minute scriptThe last thing you want is for your video to be jumbled, unfocused, or disengaging. That’s why it’s important to think about your video’s structure before you hit record.A popular method is the 5-minute script, which is designed to create clear, engaging, and action-oriented videos quickly – typically running for five minutes or less. Here’s a quick breakdown of how it works:Hook: Get the viewer’s attention by stating the core problem or benefit they’ll get from watching your video.Teach/core value: Answer the viewer’s question, or explain the solution to the problem with a what, why, and how approach to keep it focused.Call to action: Tell the viewer what to do next. This could be asking for a like/comment, directing them to a linked resource, or promoting a related product/service.The YouTube SEO checklistEven the best-quality video isn’t going to get you anywhere if you don’t implement SEO practices. For YouTube, you should focus on using relevant keywords in the video title, description, tags, and thumbnail.Video title: Keep this keyword-focused and compelling (e.g. “How to Register a Limited Company in the UK: A 10-Minute Guide”).Description: Provide a clear summary of the video, with natural use of keywords and relevant links.Tags: Use a mix of broad and specific tags (e.g. business advice, uk startup, how to register a company uk).Thumbnail: This is the first impression viewers will get of your video and can help boost click-through rate (CTR). A good thumbnail should have high-contrast colours, clear text, and a human face. As mentioned above, tools like Canva can help you design eye-catching thumbnails, even if you don’t have any graphic design experience.The call-to-action (CTA)At the end of the video, you need to explicitly tell the viewer what you want them to do next. For example, you could ask them to like and subscribe to your channel, visit your website, follow your social media pages, book a free consultation, or check out another related video.Whatever the goal of your video, a clear call to action will keep viewers engaged and help turn casual watchers into loyal followers or customers. 5. Get your content seen by the right peopleCreating video content is only half the battle, and it can be discouraging when you don’t get the views and engagement you were hoping for. However, with just a few simple digital marketing practices, you can effectively promote your videos and YouTube channel to your audience. These include:Embedding videos on your website: Embed your YouTube videos into relevant blog posts, articles, or product pages to direct external traffic to your channel.Cross-promotion on social media: Create short, engaging teasers or clips of your video for platforms like TikTok, Instagram Reels and X (formerly Twitter) to direct viewers to the full video on YouTube.Email communication: Use email marketing to announce new videos or link directly to your channels in your newsletter or email signature.YouTube Ads: Run paid campaigns (e.g. skippable in-stream ads or discovery ads) to target specific demographics or interests to increase visibility and build your subscriber base.Understanding YouTube analyticsIt’s important to have a good understanding of YouTube analytics, as it gives you insights into how your videos are performing and how viewers are engaging with your content. The most important metrics to look for are:Impressions: The number of times your video thumbnail was shown to viewers on YouTube (e.g. the home page, search results, or suggested videos page).Impressions click-through rate (CTR): The percentage of people who saw your video thumbnail (an impression) and actually clicked to watch it.Watch time: The total minutes viewers have spent watching your videos.Audience retention: The average percentage of your video that viewers watch before clicking away.Subscriber gains: The subscribers gained (or lost) from a video or over time.Subscriber demographics: Data on your audience’s age, gender, and geographic location.ConclusionUnderstandably, starting a YouTube channel for your business may feel overwhelming, but with a clear plan, the right tools, and a little creativity, it’s entirely achievable.All it takes is understanding your goals and your audience, so that you can create engaging content that resonates with your customers. With this, you can grow a channel that not only builds your brand but also attracts and converts customers,The main thing is to be consistent and to focus on content that’s useful, entertaining, or informs your audience. That, and some patience and persistence, can make your YouTube channel a strong digital marketing tool for your business. Share this post facebook twitter linkedin Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.
What is the VAT Flat Rate Scheme and how does it work? The VAT Flat Rate Scheme can take the headache out of bookkeeping for small businesses, but are you eligible to take part? Written by Helena Young Published on 21 October 2025 We’ve spent over two decades helping business owners understand key financial concepts, so we know how complex they can be. Even if you’ve got yourself set up with the top accounting software, areas like value-added tax (VAT) can still be a minefield.The VAT Flat Rate Scheme was introduced to make things simpler for small business owners, but is it right for you? Our simple, easy-to-follow guide will break down what the scheme is, see if you’re eligible to take part, and explain how it can benefit your business. 💡Key takeaways The VAT Flat Rate Scheme makes bookkeeping easier by allowing you to pay a fixed percentage of your VAT-inclusive turnover to HMRC, rather than having to calculate VAT on each transaction.To be eligible, your business’s annual turnover must be £150,000 or less (excluding VAT), and you must leave the scheme if your annual turnover exceeds £230,000.You won’t be able to reclaim VAT on your business purchases, with the exception of single capital asset purchases costing over £2,000.Your flat rate percentage is determined by your business type, with ‘limited cost businesses’ subject to a much higher rate of 16.5%. What is the VAT Flat Rate Scheme and how does it work?For most new business owners, understanding VAT and how to pay it can be daunting. The VAT Flat Rate Scheme was introduced to make bookkeeping easier for small businesses in the UK, simplifying the way they record and make VAT payments.Normally, you would need to calculate the amount of VAT per transaction: the amount you pay to (or claim back from) HMRC is the difference between the VAT you charge to your customers, and the VAT you pay on your own purchases.However, with the VAT Flat Rate Scheme, your business pays a fixed amount of VAT. You’ll keep the difference between what you charge to your customers, and what you pay to HMRC.Generally speaking, this means you’ll pay a lower percentage than the standard 20%. Just keep in mind, on the flat rate scheme: you can’t reclaim VAT on the purchases made by your business. Except for some specific capital assets over £2000. Capital expenditure and VAT Capital goods generally refer to anything bought for your business that’s a long-term physical asset: to create benefit for your business for longer than a year.If you’re on the Flat Rate Scheme, you’re allowed to reclaim the VAT you’ve been charged on an individual purchase of capital goods: as long as the purchase amount, including VAT, comes to more than £2000.These will be dealt with outside of your Flat Rate Scheme. You’ll need to claim the input tax in box four of your VAT return. Your VAT Flat Rate Scheme percentage will depend upon the type of business you run. You can find a full list of business types and rates by jumping down to the section below.To work out what you pay, you need to multiply your VAT flat rate by your ‘VAT inclusive turnover’. VAT inclusive turnover includes both your business’s income, as well the VAT paid on that income.It might sound a little confusing at first, but let’s put this into a scenario to make it more digestible:Let’s say you run a hairdressers, and you charge a client £60 for a hair treatment. You add the standard 20% VAT, making it £72 in total.For hairdressing (or other beauty treatment services) the VAT flat rate is 13%. So that means the flat rate payment will be 13% of £72: £9.36.So it’s your standard invoice amount, plus the standard VAT 20% rate x the flat rate for your business.It’s also good to know that you’ll get a 1% discount if this is your first year as a VAT-registered business. Your percentage rate will be entirely dependent on your type of business, you can find the full list of flat rate UK percentages in the table below:Business typeRateAccountancy or book-keeping14.5Advertising11Agricultural services11Any other activity not listed elsewhere12Architect, civil and structural engineer or surveyor14.5Boarding or care of animals12Business services not listed elsewhere12Catering services including restaurants and takeaways before 15 July 202012.5Catering services including restaurants and takeaways from 15 July 2020 to 30 September 20214.5Catering services including restaurants and takeaways from 1 October 2021 to 31 March 20228.5Catering services including restaurants and takeaways from 1 April 202212.5Computer and IT consultancy or data processing14.5Computer repair services10.5Entertainment or journalism12.5Estate agency or property management services12Farming or agriculture not listed elsewhere6.5Film, radio, television or video production13Financial services13.5Forestry or fishing10.5General building or construction services*9.5Hairdressing or other beauty treatment services13Hiring or renting goods9.5Hotel or accommodation before 15 July 202010.5Hotel or accommodation from 15 July 2020 to 30 September 20210Hotel or accommodation from 1 October 2021 to 31 March 20225.5Hotel or accommodation from 1 April 202210.5Investigation or security12Labour-only building or construction services*14.5Laundry or dry-cleaning services12Lawyer or legal services14.5Library, archive, museum or other cultural activity9.5Management consultancy14Manufacturing fabricated metal products10.5Manufacturing food9Manufacturing not listed elsewhere9.5Manufacturing yarn, textiles or clothing9Membership organisation8Mining or quarrying10Packaging9Photography11Post offices5Printing8.5Publishing11Pubs before 15 July 20206.5Pubs from 15 July 2020 to 30 September 20211Pubs from 1 October 2021 to 31 March 20224Pubs from 1 April 20226.5Real estate activity not listed elsewhere14Repairing personal or household goods10Repairing vehicles8.5Retailing food, confectionery, tobacco, newspapers or children’s clothing4Retailing pharmaceuticals, medical goods, cosmetics or toiletries8Retailing not listed elsewhere7.5Retailing vehicles or fuel6.5Secretarial services13Social work11Sport or recreation8.5Transport or storage, including couriers, freight, removals and taxis10Travel agency10.5Veterinary medicine11Wholesaling agricultural products8Wholesaling food7.5Wholesaling not listed elsewhere8.5It’s also crucial to keep in mind that if your good costs less than 2% of your total turnover, or £1000 if it’s more than 2%, then you’ll be classified as a ‘limited costs business’. This means you’ll be subject to a far higher 16.5% rate, so it’s important to determine if this applies to your business before applying to the scheme. Am I eligible for the VAT Flat Rate Scheme?The key criteria for eligibility is the VAT Flat Rate Scheme threshold: if your annual turnover (before VAT) is up to, but no more than, £150,000 per year.However, there are some other important exceptions that might exclude you from the scheme that you need to be aware of:If you’ve left the scheme within the last 12 months, you can’t rejoin.If you’ve committed any VAT offences within the last 12 months.If you’ve joined, or if you had eligibility for joining, within the last 24 months.You’ve already joined a margin or capital goods VAT scheme.You also can’t join the VAT Flat Rate Scheme if you’re closely associated with another business. Basically, you’re deemed an ‘associated’ business if you’re under the main influence of a separate business, one that gives directions to your business.If you’re feeling unsure as to whether this would apply to your business, we would recommend contacting HMRC directly for assistance.You also won’t be able to use the scheme alongside the Cash Accounting Scheme. You’ll need to use the scheme-specific cash-based turnover method: this involves applying your flat-rate percentage to any VAT inclusive supplies for which you’ve been paid within the accounting period. Whether or not you should join the VAT Flat Rate Scheme is a complex question, and will entirely depend on your specific business circumstances.We’d recommend speaking to your accountant first, or a specialist, to get clear understanding of whether the scheme is right for you. If you don’t have one, you can use our guide to finding the right accountant for your business.The main benefit for joining the scheme is that it will make accounting much less complicated. It makes it significantly easier to calculate and pay the VAT you are due, which is particularly beneficial during that stressful time when you need to submit your tax return.Crucially you could, in theory, save more money by being part of the flat rate scheme as your fixed rates could be lower than the standard rate.However, how beneficial the scheme will be for you will depend on your circumstances. For example, if you buy and sell goods from outside the UK this may make the scheme too complex to use.The simplicity of the Flat Rate Scheme also tends to favour smaller businesses with lower transaction totals. If you’re a more complicated business with a higher volume of transactions, you may be better off without the scheme.Similarly, if you’re making lots of VAT exempt sales, you could end up paying more in VAT. The same goes for zero-rated sales, as lots of these will also cost you more in VAT ultimately. When should I leave the scheme? You’ll need to leave the Flat Rate Scheme under some specific circumstances. For example, you’ll need to leave if:Upon the anniversary date of you joining the scheme, your turnover from the previous 12 months is over £230,000 (including VAT). The same applies if you expect your turnover to exceed this amount in the next 12 months.If you also expect your total income to be more than that figure in the next 30 days, you’ll also need to leave the scheme. First things first: you’ll need to be already registered for VAT in order to join the Flat Rate Scheme. If you’re not registered for VAT, you can join the VAT Flat Rate Scheme as part of the same process.You can find more information in our full guide to registering for VAT.If you’re already registered for VAT and want to join the Flat Rate Scheme you can do so either online via the government portal or by post. You’ll need to do so using form VAT600FRS.To join, you will need the following to hand:The name of your business as it appears on your VAT Certificate of Registration, and the address of your business.Your VAT registration number.A contact phone number.The type of business you run – this will be the main activity, defined by the most relevant category in the table above.The flat rate percentage for your business type (again, use the table above).The start date from which you’ll begin using the scheme: HMRC states this is usually from the start of the VAT period after they receive the application.If you application has been successful, you will be notified through your online VAT account (or through the post, if you’ve used a paper application).What if I want to leave the scheme?You’re free to leave the scheme anytime you choose. You just need to contact HMRC with your name, signature, VAT number and business name and address. You can contact them through email, post or by phone.Just keep in mind, once you leave the scheme, you’ll need to wait at least a year before rejoining again. In SummaryAs long as your VAT turnover meets the threshold of £150,000 or less, excluding VAT, the VAT Flat Rate Scheme can be a great option for small business owners who want to simplify their VAT payments to HMRC and have an easier time with their bookkeeping.Whether it’s right for you will depend on your circumstances, but it is generally suited to businesses with a low transaction volume. We’d recommend talking to an accountant or specialist to get more tailored advice as to whether you should be joining the scheme.The next step for business owners is making sure they fully understand Making Tax Digital, and are compliant with keeping digital VAT records. Share this post facebook twitter linkedin Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.