Small firms 'must stay up to date on red tape'

Owners of small businesses have been advised to take a "long-term" view of their development and ensure that they stay well-informed of any new legislation brought in by the government.

David Robertson, chief executive of cash flow provider Bibby Financial Services, said that small companies can often be caught unawares by changes to business red tape such as holiday entitlement, minimum wage and the Consumer Credit Act.

However, he also stated that the government's decision to limit the introduction of legislation to April and October has made it easier for the small business sector to "keep tabs on" any changes, Onrec.com reports.

"Businesses must still think long-term to ensure they keep within the law and take the necessary steps to implement any changes well before the deadlines to avoid the risk of prosecution and penalty," Mr Robertson said.

"Making sure your business doesn't get caught out should be top of the agenda in the new year," he added.

Training organisation e-skills UK recently stressed the importance of the internet for small businesses and sole traders.