small business growth

Is Your Small Business Set To Grow?

Throughout the 2020s, there has been a major rise in small businesses being established – mainly out of necessity as the world was gripped and shaken by the global pandemic. People found that they needed to change their career direction and start fresh after their regular incomes and job security was pulled from underneath them without warning. Many of these businesses have prospered and grown over the last two years and many are now preparing to take on employees for the next stage of their small business growth.

For small business owners who have never had any experience with running a business other than being catapulted into it headfirst, they may not understand how to effectively take on an employee other than themselves and what needs to be done.

From what it costs to holidays and breaks and sickness pay, handling employee onboarding and payroll for someone other than yourself can feel like a major job in itself.

Cost

With small business growth, the biggest upfront consideration is how much your new employee is going to cost your business. It is not just a case of knowing how much you are paying them by the hour to by the month – as it is not the only cost associated with them.

What you pay them has to meet the national minimum wage and increase that rate each year that the national minimum wage increases. If you choose to pay an annual salary, you will need to break it down to an hourly rate that still meets this requirement.

On top of this, you will have to pay National Insurance contributions payable on earnings over £737 per month, as well as paying pension contributions of 3% of salary on earnings over £833 per month. You may also need to work out additional hourly rates if you need your employee working extra hours. All of these considerations need to be taken into account on top of their pay.

Breaks and Holidays

Your employee will have a set amount of hours for working – such as a 9 to 5 five day week with an hour for lunch on each day. An employees’ pay and holiday will be worked out based on the working hours of the business – including if an employee only works part-time at 20 hours a week.

Employees are entitled to an uninterrupted break of at least 20 minutes if they work 6 hours or more during a day. You may not realise how much extra it costs you to pay people for their lunch break and be generous towards an employee – especially when you take on even more.

Statutory holiday pay is usually 20 days plus bank holidays, and all employees are entitled to take them. They cannot be paid if they don’t want to take it or cannot during the minimum requirement during the year. Even if they only work a few hours per week, they must take time off and be paid for it so they receive the equivalent of paid holiday each year.

At Pebbles Bookkeeping, we help every small business who wants to grow not just with small business bookkeeping solutions, but also in areas around payroll outsourcing services and every aspect of onboarding new employees for your business.

Contact our team today to discuss your small business growth and the process of hiring a new employee for your business.

Don't just take our word for it...

Mark Gray, Taylor Made Finance Ltd

“Pebbles Bookkeeping have been doing our bookkeeping for the past 2 years. Our Accountant recommended them to us and they are very professional, approachable and knowledgeble in the work they do. We send them our paperwork electronically and manually and they process it all efficiently in a timely manner.

I would not hesitate to recommend Sean and the team at Pebbles Bookkeeping – they do a fantastic job.”
Lisa Heggie, The Gunnery

A massive thank you to Diane at Pebbles Bookkeeping & HR. You took the huge stress away from where do I start, with employee policies etc. You have created us a great, informative employee handbook, covering all necessary policies and risk assessments in a matter of no time and from the other side of the world too. I will definitely be in touch for any future help our company needs.

Anne-Marie Armstrong, Amberry Marketing

I just wanted to thank you both for the help you’ve given me thus far in setting up my new cloud-based bookkeeping system ‘Clearbooks’.

Having used Microsoft Excel for more years than I care to admit, I had more than a few reservations when considering changing the way I managed my books, yet understood that I had to make the change sooner or later.

After an intense training session with Sean, (where I probably asked 101 questions), my fears quickly dissipated and I can honestly say that although it’s likely to take me a little while to really get to grips with the new interface, I’ve no doubt that this simple system will save me so much time and hassle in future.

And less time spent doing my books, almost certainly means more time with the family and an end to rushing around like a mad woman at quarter-end!

Thanks again and I’m looking forward to working with you again soon.

James Balderstone, Lucid Networks

Pebbles Bookkeeping took over our bookkeeping when a full-time member of staff left the business.  Our accounts are relatively complex for a business our size because of the number of different suppliers and products we deal with, but Pebbles were able to get quickly up to speed.  We have significantly reduced our costs spent on bookkeeping activity as a result. They have also helped us move to a new accounting system (Xero), which we are already seeing the benefit of, and we’re looking forward to working with Pebbles in the future to automate more of our back-office processes.

Steve Tanswell, Manchester Facades

I changed book-keepers around a year ago because of a disagreement.  I employed Diane of Pebbles and having been with the same firm for 10 years, I was amazed by how easy working with Diane was.  Not only did the change save me money but also saved me time.  Utilising new technologies (to me) have massively improved the amount of money I can claim back in VAT and has made the whole process speedier and well as easier.  Even when Diane is chasing me for information she does in a friendly professional manner.  I’m thrilled to be working with her and would recommend her to anyone.