You’ve just started a new business, that’s great!

On your accountants, advice you’ve set up a limited company, but do you know the additional responsibilities and consequences of this action?

Well, you’ve just become a director, so it’s absolutely crucial that you check out the government website, as it’s a very serious responsibility with legal consequences.

In setting up a limited company you create a company with a separate legal identity from you as an individual and a by-product is that anyone working in the company, even the directors are employees of it.

Under the Employers Liability compulsory insurance ACT 1969, where there is more than one director, or any other employees or volunteers, unpaid or otherwise, Employers Liability cover must be in place, by law from the minute the company exists.

Penalties include fines of up to £2,500 per day or up to 6 months in jail. It is important to get the correct advice and the right cover in place, on day one.

If there aren’t any manual activities or physical labour, this can be done for a few hundred pounds by arranging a small “Office” policy, which automatically includes this cover along with many others.

If your business does include manual activity then the imperative is even more serious, as there is a real possibility of injury to employees!

Not sure, give us a call 029 20 470 375

Starting a Business