Pressure on microbusinesses

Recent research takes a look at the legislative pressures faced by microbusinesses.

Microbusinesses are defined as businesses employing less than 10 people. There are 5.2 million apparently in the UK, by numbers - some 99% of all UK companies. It seems that 'red tape' and increasing employment bureaucracy is becoming a big disincentive to taking on more staff. Just in the recent budget a big hike in the minimum wage was sprung on business in general.  By  these standards our company must be a sub-microbusiness as we employ other specialist supplier companies rather than take on staff ourselves. But this does not mean we are exempt from issues such as auto enrollment in pensions for example. We are apparently known as a director only company in auto enrollment parlance. We have to register to opt out.

So here is the story. Our accountant writes a letter explaining the background, what is the best option for  our business, then goes on to supply screen shots of the online process. It look straightforward  given he had done the research and got all the numbers for us. Five to ten minutes at the most. Wrong.  OK so we get to the web site of the Pension Regulator  at htpps://automation.thepensionregulator.gov.uk/NotAnEmployerhttps://automation.thepensionsregulator.gov.uk/notanemployer  - OK , done that, 'submit'. Up comes the red triangle and exclamation mark symbol - 'Mismatch ... check you have entered data correctly and try again.' Do that, get my fellow director to verify - same result. Now I am asked to telephone 0845 600 1011. A recorded message of 1minute 18 seconds tells me to visit the web site, then gives various fixes for problems such as substituting numbers for asterix or something before finally a menu of options and last option of all to speak to someone. This is no 5 minute job. Eventually after being asked to participate in a questionnaire I get to speak to Olivia, after of course the usual security questions. After explaining the problem she explains that I  cannot submit the data because it has already been done as we are a director only company and they have helpfully done this for us. I don't ask the obvious question as to why they don't explain this on the web site as we can't be the only ones. She takes a note of my email and promises to send an email noting we have registered. Great - all done the. Well not quite there's the survey I agreed to take.

I watch my email inbox and after a short while up pops Olivia's email. Oh dear, they have got the wrong company, we are not beauty consultants. Back on the phone, same message, swerve round the survey and speak to a young man with an unpronounceable name after all the security questions of course. Explain the problem which amazingly he is authorised to sort out. Soon his email arrives and I duly forward this to our accountant for reference. And that is just one reason why small businesses feel over burdened by employment legislation, even when you have no employees - yet this is where new jobs should be being created.

Now how about doing some paid for work!