Is a prenup part of your business risk management strategy?

Managing risk is an essential part of any business operation and while personal relationships do not often appear high on a business risk register, an acrimonious divorce has the power to devastate a small business. ‘While few anticipate or want to believe their own marriage will break down, sadly recent statistics show that over a third of all marriages end in divorce,’ says Robert Bellhouse family law expert at Ware & Kay in York & Wetherby. ‘It is not uncommon for directors of a family business to insist that members of the next generation enter into a prenup before they get married, in order to protect the business assets from the effects of a divorce.’  It is sensible for all entrepreneurs to consider a prenuptial agreement if they are thinking of getting married or entering…

Carving up a family farm after divorce or separation

While January is a time of new resolutions and fresh starts, Christmas may have been a difficult time with strained relationships in hard-pressed farming families, many of which are still struggling with the aftermath of Brexit, Covid and the current cost-of-living crisis. It is little wonder then that the first Monday of January is known amongst family lawyers as ‘Divorce Day’, with so couples having reached breaking point and looking to split up or file for divorce. Divorce or separation is always a stressful time, as couples seek to split their joint belongings and make arrangement for their children, but can be especially difficult for farming families whose assets may not be easy to divide, as Robert Bellhouse, family law specialist at Ware & Kay Solicitors in York & Wetherby explains. When couples divorce, the…

The tax you pay when you sell a business: Entrepreneur Relief Tax

Entrepreneurs' relief, often referred to as business asset disposal relief is a specific capital gains tax (CGT) break that you may be eligible for if you're selling a business you own. When I see a business, do I have to pay CGT? The entrepreneurs' relief—recently renamed business asset disposal relief—may enable you to pay a lower CGT rate of 10% on the first £1 million in proceeds if your business qualifies. How does the entrepreneurs' relief work? The relief means you will be charged 10% (the basic rate) on the first £1 million your business makes. For those who are additional or higher rate tax payers (e.g. those who pay 20%), you will have been charged around half of the usual rate. £1 million is the maximum amount that can be claimed per person, so the…

New Year, New Start, New Job: An Employer’s Guide to Hiring Employees

This short article is aimed at the businesses who are looking to employ new staff.  It is important to take the correct legal steps when hiring new employees. Though it may seem simple to some, there are mandatory steps that any employer must take when looking to take on a new employee – and that doesn’t mean just showing them where the tea and coffee is located! Right to work in the U.K. First thing’s first, every employer MUST ensure that their new employee has a right to work in the U.K. Right to work checks can be carried out manually by obtaining documents from an approved list (see Home Office website for this). If an employee is unable to show their documents or status, you may be able to use the free Employer Checking Service…