Author: Bee Ingram

08:56:57 BST • 7 October 2025

How to leverage word of mouth marketing for your small business

17 April 2025

•

9 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Word of Mouth Marketing (WOMM) is one of the most influential tools a small business can use. Unlike traditional advertising, which depends on paid placements and polished messaging, WOMM is driven by genuine conversations and real-life recommendations. When customers share positive experiences, whether in person or online, they help build trust and credibility for a brand, often influencing others to engage or make a purchase.

Historically, word of mouth was spread through face-to-face chats, phone calls, and personal referrals. Small businesses built their reputations locally, thriving on strong relationships and consistent service. While those traditional roots remain relevant, today’s word of mouth has evolved to include social media, online reviews, and influencer endorsements, allowing even the smallest businesses to reach wider audiences.

In fact, data strongly supports its impact. According to Nielsen, 92% of consumers trust recommendations from people they know over any other form of advertising, while reviews and endorsements from trusted figures, such as celebrities or influencers, also carry significant weight. This unparalleled level of trust makes WOMM not just effective, but essential for any small business looking to grow authentically and affordably.

So, what is word of mouth marketing, how easy is it to roll out for your small business and is it worth it? We’ve put together a short guide to help you decide.

What is word of mouth marketing?

Word of Mouth Marketing (WOMM) is when customers voluntarily share their experiences about a business with others. It can occur naturally, without any prompting, or be encouraged through strategic efforts by the business.

Types of WOMM

Organic WOMM – This occurs when customers genuinely enjoy a product or service and talk about it with friends, family, or social media followers. There is no incentive involved; it stems purely from enthusiasm and satisfaction.

Amplified WOMM – In this case, businesses actively encourage and promote word-of-mouth sharing. This could be through referral schemes, social media engagement, or influencer collaborations.

Why is WOMM essential for small businesses?

Small businesses often operate with limited marketing budgets, making WOMM an invaluable strategy. It allows companies to grow organically, as happy customers naturally spread the word about great products and services. Additionally, recommendations from friends and family carry significant weight, making potential customers more likely to trust and act on them.

Why do people share recommendations?

People are naturally inclined to share recommendations, and much of this behaviour is rooted in psychology. At the heart of it lies the principle of social proof – when people endorse a product or service, it reinforces their own decision-making and provides a sense of validation. Sharing a great experience also creates an emotional payoff; there’s satisfaction in helping others discover something valuable.

On a deeper level, recommending a business can subtly provide a positive reputation, as it signals taste, insight, or being ‘in the know.’ This intrinsic motivation is often complemented by external incentives, such as discounts or referral rewards, which can further nudge people to spread the word.

WOMM channels in the digital era

Today, digital platforms have transformed how word of mouth spreads. With just a few clicks, customers can share their experiences with a much larger audience. Some of the most powerful modern WOMM channels include:

Social media: Platforms like Facebook, Instagram, Twitter, TikTok, and LinkedIn allow businesses to engage with customers and encourage them to share their experiences.
Online reviews & ratings: Feefo, Trustpilot and Checkatrade can be essential tools for businesses that rely on reputation and customer feedback.
Influencer marketing: Businesses collaborate with micro-influencers for authentic promotion, leveraging their credibility and following.
Referral & loyalty Programmes: Offering incentives for referrals helps encourage organic recommendations.
User-Generated Content (UGC): Customers posting photos, testimonials, and reviews about a business can generate powerful word-of-mouth exposure.

As an example: A small café that once relied on local chatter can now experience a surge in customers due to a viral Instagram post or a glowing online review.

How to use Word of Mouth Marketing for your small business

Deliver outstanding service & experiences

Providing exceptional service is the foundation of WOMM. Customers only recommend businesses they genuinely love. A memorable, seamless experience makes people more likely to talk positively about your brand, both online and offline.

Encourage reviews & testimonials

Asking satisfied customers to leave reviews can significantly boost credibility. Positive reviews serve as social proof, reassuring potential customers and influencing their purchasing decisions.

Leverage social media

Encourage customers to tag your business, use hashtags, and share their experiences online. This not only increases your visibility but also creates a stream of authentic content that can attract new audiences.

Use referral & loyalty programmes

Reward customers for referring friends to your business. These programmes turn happy customers into active promoters, helping you grow your base through trusted personal networks.

Work with micro-influencers & brand advocates

Authentic endorsements from real people can be highly effective. Micro-influencers, in particular, often have stronger connections with their followers, making their recommendations more persuasive.

Engage in community & networking

Attending local events and networking can help spread the word about your business. Building genuine relationships in your community can lead to lasting loyalty and consistent word-of-mouth referrals.

Benefits of Word of Mouth Marketing

Higher trust & credibility

Recommendations from friends and family are more influential than traditional advertising. People tend to trust real experiences over brand messages, making word of mouth a powerful driver of consumer confidence.

Cost-effective

WOMM requires little to no financial investment compared to paid advertising. This makes it especially valuable for small businesses looking to maximise impact without straining their budget.

Builds customer loyalty

Encouraging repeat customers helps businesses thrive. When people feel heard and valued, they’re more likely to return and promote your business to others.

Boosts brand awareness

More exposure with less effort. Every share, mention, or recommendation extends your reach to new potential customers without the need for constant promotion.

Increases conversions

Referred customers are more likely to make a purchase. They often arrive with a level of trust already established, making them easier to convert and more likely to become loyal patrons.

Costs of using Word of Mouth Marketing

Organic WOMM: Free, however it relies on satisfied customers receiving positive experiences and natural advocacy. Conversely if customers have negative experiences the cost to recover from this could be detrimental.

Paid WOMM Strategies:

Offering referral rewards such as discounts, free products.
Collaborating with influencers.
Investing in reputation management tools.

WOMM is far more cost-effective than traditional advertising and has long-term benefits.

Small businesses that benefit most from WOMM

Local service-based businesses

Businesses that rely on trust and credibility naturally benefit from WOMM. Restaurants, cafés, salons, auto mechanics, and cleaning services all thrive on personal recommendations. If someone has a great dining experience, a fabulous haircut, or finds a trustworthy mechanic, they are likely to tell others.

Professional services

Word of mouth is crucial for professional services such as real estate agents, consultants, and freelancers. Clients who have had a positive experience will be more inclined to recommend their service provider to friends and colleagues.

Retail & E-commerce

Shops selling unique or handmade products can benefit greatly from word of mouth, particularly if their products stand out on social media. Hobby shops and niche retailers can also build loyal customer communities that naturally generate recommendations.

Fitness, health & wellness

Gyms, personal trainers, and wellness businesses see significant benefits from WOMM. People are more likely to join a gym or try a new fitness class if they hear about it from a friend who had a positive experience.

Examples of successful word of mouth marketing campaigns UK

Wild Cosmetics

Wild Cosmetics specialises in refillable deodorants and body care products aimed at reducing single-use plastics. The brand’s commitment to sustainability and innovative product design resonated with consumers, leading to organic discussions and recommendations. This positive word-of-mouth contributed to a 77% revenue increase, reaching £46.9 million in 2023, and culminated in the company’s acquisition by Unilever for nearly £100 million in April 2025.

Wingstop UK

In 2018, entrepreneurs Tom Grogan, Herman Sahota, and Saul Lewin introduced the American chicken wing franchise Wingstop to the UK. The brand rapidly gained popularity, particularly among Gen Z consumers, thanks in part to endorsements from celebrities like Stormzy and AJ Tracey. These endorsements and the ensuing buzz led to organic word-of-mouth promotion, fuelling the expansion to 50 restaurants across the country and resulting in the company’s sale for over £400 million in December 2024

Why small businesses can thrive with WOMM:

Customers naturally talk about businesses that deliver excellent experiences.
Trust is a key factor in decision-making.
Repeat customers and referrals lead to long-term growth.

Word of mouth marketing plan checklist

Provide excellent customer experiences
Set up a referral programme
Encourage customer reviews & testimonials
Actively engage on social media
Partner with local influencers & brand advocates
Attend community events & network
Monitor & respond to online reviews & mentions
Track results & optimise strategies

Word of Mouth Marketing is one of the most powerful and cost-effective ways for small businesses to grow. It builds trust, increases visibility, and generates customer loyalty. By delivering outstanding service, leveraging social media, and using referral programmes, small businesses can harness WOMM to drive sustainable success.

Specialist Small Business Insurance from Protectivity

While word of mouth marketing thrives on positive experiences, it’s important to be prepared for when things don’t go to plan. Although insurance can’t protect your reputation from negative perceptions, it can provide vital cover for unexpected incidents beyond your control.

Protectivity offers affordable small business insurance suitable for side-hustlers and budding entrepreneurs just like you, specialising in a wide range of different activities. Public liability is included with options to add extras such as equipment cover, employers’ liability and other specific industry add-ons.

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17:11:19 BST • 17 April 2025

Latest scams affecting small businesses

15 April 2025

•

9 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

For small businesses, falling victim to a scam isn’t just an inconvenience – it can lead to serious financial loss, operational disruption, and reputational damage. In fact, a recent Visa survey found that UK SMEs lose an average of £3,800 per fraud incident, with 6–8% of cases resulting in damages exceeding £10,000. As cyber criminals become more sophisticated, digital fraud has emerged as a growing threat, with more than 41% of UK small and medium businesses reporting they were targeted in the past year. Unlike physical crimes such as theft or vandalism, cyber scams often go unnoticed until it’s too late, making them especially dangerous.

Yet despite the scale of the problem, insurance policies often don’t cover the financial or operational impact of these attacks. This highlights the need for greater awareness and stronger preventative action. There are practical steps that both businesses and insurers can take to reduce the risk. This article explores the most common types of digital scams, the cost and scale of fraud affecting small firms, and how businesses can better protect themselves through awareness, training, and strong internal controls.

Types of scams

Phishing emails

Phishing continues to be the most common cyber-attack on businesses. In these scams, fraudsters pose as trusted organisations – such as banks, HMRC, or suppliers – and send emails designed to trick staff into clicking malicious links or revealing sensitive login details. Other variants include vishing (fraudulent phone calls) and smishing (deceptive text messages), all designed to manipulate employees into sharing information or making payments.

Invoice fraud & fake supplier scams

Also known as mandate fraud, this scam involves criminals impersonating a regular supplier and requesting a payment to a new bank account. Often, they use hacked email accounts or convincing lookalike invoices, making the request appear legitimate. The business only realises something is wrong when the real supplier later contacts them about a missing payment. This category also includes fake purchase orders or bogus procurement schemes – scams that cost small businesses millions every year and are among the most frequently reported.

Business identity theft

This involves criminals hijacking or imitating a legitimate business to commit fraud. It could mean altering official registration details, setting up a similarly named sham company, or even cloning a company website or social media profile. The goal is typically to take on debt, order goods, or mislead customers and partners. Aside from financial losses, these scams can cause lasting damage to a business’s reputation and credit rating.

CEO and impersonation scams

In these attacks, scammers pretend to be someone in authority – such as a CEO, director, client, or bank official – and instruct staff to make urgent payments or share sensitive data. Known as CEO fraud, this tactic relies on employees’ trust and the pressure to act quickly. A common example is a fake email from a senior executive demanding an urgent transfer outside of normal protocols. These scams exploit human behaviour rather than technology – making them particularly dangerous.

Cyber fraud and malware

Not all scams rely on social engineering. Some involve more technical threats like ransomware, viruses, or direct hacking. For example, fraudsters may gain access to a business’s phone systems and make premium-rate calls, or hack into email systems to redirect payments. While less common than phishing, these incidents can cause significant disruption and financial harm, particularly when critical data is compromised or lost.

Cost of scams

The financial impact of fraud is significant. According to UK Finance, a total of £1.17 billion was stolen through fraud across the UK in 2023. Small businesses are a major part of this figure. In just the first half of 2023, businesses lost £42.6 million through authorised push payment (APP) scams – where companies are tricked into sending money to fraudsters.

On average, UK SMEs that fall victim to fraud lose around £3,800, according to Visa’s survey, but this can be much higher in complex scams. The average cost of a cybercrime incident is estimated at £1,120, though 6–8% of cases result in losses of over £10,000.

Scale of scams to small businesses

Prevalence

Fraud targeting small firms is widespread. The Federation of Small Businesses (FSB) reports that 37% of SMEs experienced fraud or cybercrime over a 12-month period. A separate survey by Visa in late 2024 found that 41% of UK small and medium businesses had been affected by fraud in the past year – a clear sign that this threat is not going away.

Top tactics

Phishing is still the most common form of cyber-attack – accounting for around 84–90% of incidents. Impersonation scams also remain prevalent, experienced by roughly 35% of businesses. In terms of financial fraud, invoice fraud tops the list at 31% of reported cases, followed by card/cheque fraud (29%) and unauthorised bank payment fraud (26%).

Are small businesses keeping up?

Many SMEs are taking steps to improve their defences – 92% report implementing some form of cyber or anti-fraud measure. However, as criminals continue to evolve their tactics, there’s still a knowledge gap. Nearly half of small businesses are unaware of threats like invoice fraud, making them easier targets. Without dedicated cybersecurity teams or regular training, smaller firms often struggle to spot and stop scams in time.

Preventative measures

Experts and authorities urge small businesses to take proactive steps to guard against scams. Here are key preventative measures based on official advice:

Be sceptical and verify requests

Encourage your team to question unexpected requests, especially those involving payments or sensitive information. If you receive an email requesting a payment or a change of bank details – even if it appears to come from a known supplier or your boss – verify it via an independent channel. For example, call the supplier using the phone number you have on file (not a number provided in the email) to confirm the request.

Always confirm changes to bank details or unusual payment instructions through a separate, trusted communication channel – such as phoning the supplier directly using a known number. Don’t rely solely on email or caller ID, as both can be spoofed.

Educate and train employees

Regular training is key. Help staff recognise red flags such as strange email addresses, unexpected urgency, or generic greetings. Make scam awareness a routine part of your operations – much like health and safety. Campaigns like Take Five to Stop Fraud and quizzes from UK Finance offer excellent training tools to keep your team alert and informed.

Strengthen cybersecurity hygiene

Adopting good cyber habits can go a long way. Use strong passwords, turn on multi-factor authentication, keep devices and software up to date, and install reliable antivirus protection. Back up your data regularly and limit who has access to key systems. The NCSC’s Small Business Guide offers simple, practical tips for building digital resilience.

Secure your business identity

Protect your business’s official records by signing up for the PROOF scheme at Companies House, which helps block unauthorised changes. Use the Follow service to get alerts for any updates to your business’s filings. Be cautious about what you share online – details about suppliers or contracts could help a scammer craft convincing messages.

Implement strong payment controls

It’s worth introducing checks and balances into your payment processes. Require dual approval for high-value transactions and consider setting daily transfer limits. Make the most of banking tools like Confirmation of Payee – if the account name doesn’t match, investigate before sending funds. Separating responsibilities for payment approvals and execution can further reduce risk.

Report and respond quickly

If you do suspect a scam or fall victim to one, act immediately. Contact your bank’s fraud team if you think you’ve sent money to a wrong account – banks can sometimes freeze or recall funds if alerted in time. Likewise, if your system is hacked or you notice suspicious account changes, notify your IT provider or cybersecurity response service without delay.

Next, report the incident to Action Fraud (the UK’s national fraud reporting centre) either online or by phone. Prompt reporting not only aids possible investigations, but also ensures authorities capture the details to warn others and build intelligence on scam trends.

Small businesses can also reach out to helplines from bodies like the National Cyber Security Centre or industry associations for guidance after an incident. Remember that you’re not alone – law enforcement and industry groups are encouraging all businesses to speak up about fraud attempts so that the perpetrators can be tracked and stopped.

By staying vigilant, educating staff, and putting these protective measures in place, small businesses can significantly reduce their exposure to scams. As fraud experts often stress, a combination of human scepticism and robust processes is the best defence.

Sources

Action Fraud (UK police fraud reporting centre) – alerts and prevention tips

UK Finance – industry reports on fraud losses and scam types

Federation of Small Businesses (FSB) – research on small business crime trends

National Cyber Security Centre (NCSC) – Small Business Guide for cybersecurity (gov.uk)

Companies House – guidance on protecting your company from identity fraud (PROOF scheme)

Visa UK – SMB Fraud research 2024 (press release)

Barclays Bank – fraud prevention advice for businesses (invoice scam guidance)

Avena Group

Get Small Business Insurance from Protectivity

The most effective way to stay protected is to understand the risks and how they could impact your business, while keeping up to date with the latest scam trends. For other risks such as injury and damage liabilities it’s worth investing in business insurance.

At Protectivity, our affordable small business insurance* suitable for sole traders, freelancers and other small business owners, specialising in a wide range of different activities.

*Currently cybersecurity cover is not included in Protectivity small business policies as we aim to keep premiums as affordable as possible.

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09:08:58 BST • 10 October 2025

How the 2025 Spring Statement impacts the UK trades sector

28 March 2025

•

4 mins read

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The UK’s Spring Statement 2025 is being pitched as a pivotal moment for national growth — and the construction and trades sector stands to benefit in a big way. With headline-grabbing announcements on housebuilding, skills investment, and capital funding, this Statement sets the tone for an industry poised for expansion.

We’ve collated an overview of what the Spring Statement means for construction workers, employers, and trades professionals — and how these changes could reshape the landscape in the coming years.

A £6.8 billion boost: The economic impact of planning reform

One of the most significant changes comes from landmark planning reforms. The Office for Budget Responsibility (OBR) has projected a £6.8 billion boost to the economy as a result — with UK housebuilding expected to reach its highest level in over 40 years by 2029–30.

These reforms aim to streamline the building process, unlock stalled sites, and reduce bureaucratic hurdles. For tradespeople and construction firms, this means:

More projects coming online quicker.
Increased demand for skilled labour across the supply chain.
Opportunities for long-term business growth and stability.

Skills investment: Training 60,000 new construction workers

The government is addressing a long-standing bottleneck in the sector: the skills shortage.

A £625 million skills package will fund:

35,000 new places in construction-focused Skills Bootcamps.
10,000 Foundation Apprenticeships for young people entering the trade.
10 new Technical Excellence Colleges specialising in construction.
Increased funding for training providers, helping both young people and adults access training.
40,000 new industry placements each year, jointly funded with the Construction Industry Training Board.

What this means for the industry: Whether you’re a contractor, training provider, or someone looking to enter the field, this injection of funding signals a major opportunity. Employers may be able to tap into government-supported training pathways, helping address staffing shortages and upskilling existing teams.

Affordable housing: £2 Billion for new homes, built now

A new £2 billion fund will deliver up to 18,000 new social and affordable homes during this Parliament. The funding comes with a caveat: it must support developments that will break ground during this Parliament — i.e., no delays.

This means:

Priority for shovel-ready projects in areas like Manchester and Liverpool.
More consistent workstreams for regional contractors.
Faster delivery schedules and potentially tighter project timelines.

Capital investment to spur private growth

The government is injecting an additional £13 billion of capital investment to help “get Britain building.” This comes on top of a £100 billion commitment from the Autumn Budget.

This money will support:

Infrastructure upgrades
Regional development, including the Oxford-Cambridge Growth Corridor
Strategic investments to unlock private sector construction projects

With GDP growth projections rising by 0.6% by 2034–35, the sector is likely to be a key engine for broader economic recovery and expansion.

More money in people’s pockets & increased demand

By the end of this Parliament, people are expected to be £500 a year better off on average. While modest, this rise in disposable income could stimulate:

Greater demand for home improvements
Increased appetite for renovations and private building projects
More confidence in self-employed tradespeople and SMEs

This rise in consumer confidence is essential for maintaining momentum in both residential and commercial construction.

A time of opportunity

The Spring Statement 2025 paints a picture of an ambitious government plan aimed at revitalising the economy with construction at its core. While execution remains to be seen, the commitments to funding, reform, and training offer a real chance for growth.

For trades and construction businesses, now is the time to:

Explore available training grants and apprenticeships
Position for public-sector tenders and affordable housing projects
Engage in planning processes to benefit from reforms

The industry has long called for action on skills, infrastructure, and planning. Time will tell if this statement suggests that Westminster is finally listening.

Get Tradesman Insurance from Protectivity

At Protectivity, we offer affordable tradesman insurance designed to cover the specific risks faced in your industry. Our policies include public liability coverage of up to £5 million as standard, with optional add-ons such as Contractor Works cover, Plant and Tools cover, financial loss protection, and employee tools cover (available when selecting other benefits). This ensures you’re prepared for unexpected costs when unforeseen events occur. Plus, you can now insure your tools from just £8.98 a month with our new tools insurance.

Take just two minutes today to explore our trades insurance options and secure the protection you need.

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09:40:25 GMT • 28 March 2025

Common hiring mistakes made by small businesses

25 March 2025

•

8 mins read

Contributors

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Hiring the right people is one of the most critical aspects of running a successful small business. The right employees can drive your business forward, but the wrong hires can cost you time, money, and even damage your company culture.

With the increase in minimum wage and higher national insurance contributions taking effect in April 2025, the cost of hiring is set to rise significantly. This puts even greater pressure on small business owners to ensure they are hiring the right people and making every hire count. Wasting resources on the wrong candidates can be more costly than ever, making it crucial to avoid common hiring mistakes that lead to poor staff choices and high turnover.

From acting too fast in the process or failing to onboard effectively, this post will explore some of the most frequent hiring mistakes small businesses make, why they happen, and how to avoid them.

Hiring from large organisations

Many small business owners assume that hiring someone from a large corporation guarantees experience, professionalism, and efficiency. While candidates from big companies may have impressive CVs, they often struggle to adapt to the flexibility, multi-tasking, and hands-on approach required in smaller businesses.

You hire a senior manager from a well-known corporate company, expecting them to bring structure and expertise. However, they’re used to having specialised teams, extensive resources, and defined processes—none of which exist in your smaller setup. As a result, they can struggle to adjust, leading to frustration on both sides.

During the interview, ask situational questions about working in smaller teams and handling a broad range of responsibilities.
Look for candidates who show adaptability, problem-solving skills, and a hands-on approach.
Consider hiring those with experience in SMEs, start-ups, or roles where they’ve had to be resourceful and work independently.

Hiring less experienced staff to save costs

Small businesses often operate on tight budgets, leading them to hire less experienced staff to save money. While this might seem like a cost-effective solution, underqualified employees may require more training, make costly mistakes, and take longer to reach full productivity.

A business owner hires a fresh graduate because they’re enthusiastic and willing to work for a lower salary. However, the role requires decision-making and technical skills that take years to develop. Without adequate experience, the new hire struggles, leading to missed deadlines and customer complaints.

Balance cost-saving with the need for competency—hiring someone who can do the job well will save money in the long run.
If hiring someone with less experience, ensure they have strong problem-solving skills and the ability to learn quickly.
Provide structured training and mentorship to help them grow into the role.

Rushing the recruitment process

When a role needs filling urgently, it’s tempting to hire the first promising candidate without thorough assessment. However, rushed hiring decisions often lead to mismatches in skills, culture, or attitude, ultimately resulting in higher turnover and wasted resources.

A small business loses a key employee unexpectedly and rushes to hire a replacement within a week. The new hire seemed good on paper but lacks key skills and struggles with the company’s pace and culture. Three months later, they leave, putting the business back to square one.

Plan ahead for hiring by anticipating future staffing needs.
Create a structured hiring process, including multiple interview stages, skill assessments, and reference checks.
Consider temporary solutions (e.g., freelancers or interim staff) rather than making a rushed long-term hire.

Lack of an onboarding process

Many small businesses believe that once an employee is hired, they should hit the ground running. However, without a proper onboarding process, new employees may feel lost, underprepared, or disconnected from the team. Poor onboarding can lead to early resignations and lower productivity.

A new hire starts their first day with no formal introduction, no training, and unclear expectations. They struggle to understand their role and don’t feel part of the team. A few months later, they leave for a company that offers better support and structure.

Develop a simple onboarding checklist covering company culture, key responsibilities, and training.
Assign a mentor or buddy to help new employees settle in.
Schedule regular check-ins during the first few months to ensure they feel supported.

Not investing in employee development

Some small businesses see training as an unnecessary expense, assuming employees should “learn on the job.” However, failing to invest in development leads to stagnation, demotivation, and higher staff turnover, as employees look elsewhere for growth opportunities.

A promising employee starts strong but after a year, they feel stuck. Without training or new challenges, their enthusiasm drops. Eventually, they leave for a company that offers better career progression.

Offer regular training opportunities, even if they are low-cost (e.g., online courses, industry events, or mentorship).
Encourage employees to take on new responsibilities and develop their skills.
Conduct regular performance reviews and discuss career development goals.

Not setting clear expectations and milestones

Some small business owners might assume employees will “figure it out” as they go. However, without clear expectations, employees may not know what success looks like, leading to underperformance and frustration.

A new hire is expected to manage social media but isn’t given specific goals. After three months, the business owner is disappointed with the lack of growth, but the employee was never told what was expected in the first place.

Define clear roles, responsibilities, and success metrics from the start.
Set short-term and long-term goals with measurable outcomes.
Schedule regular feedback sessions to track progress and offer guidance.

Not admitting when a hire was the wrong decision

Hiring mistakes happen, but refusing to acknowledge them can harm the business. Keeping the wrong employee too long can lower team morale, reduce productivity, and create unnecessary stress for everyone involved.

A small business hires a salesperson who isn’t meeting targets and struggles with customer interactions. Instead of addressing the issue early, the owner keeps them on for a year, hoping things will improve. By the time they let them go, the business has already lost valuable sales.

Be honest with yourself when a hire isn’t working out.
Provide feedback and support to help underperforming employees improve but set clear timelines for progress.
If it’s clear the role isn’t a good fit, handle the situation professionally and make a timely decision.

Not having Employers’ Liability Insurance

Employers’ liability insurance is a legal requirement for most businesses in the UK that employ staff. Failing to have this cover can result in hefty fines and serious financial risks if an employee makes a claim for a work-related injury or illness. Despite this, some small business owners either overlook it or assume it’s not necessary, leaving them exposed to potential legal and financial trouble.

A small business hires its first employee but doesn’t take out employers’ liability insurance, believing it’s only needed for larger companies. A few months later, the employee suffers a work-related injury and makes a claim. Without insurance, the business faces significant legal costs and compensation payments, putting its financial stability at risk.

Understand your legal obligations—if you have employees, you are required by law to have employers’ liability insurance (with a minimum cover of £5 million).
Ensure you have the right small business insurance policy in place before hiring staff.
Regularly review your insurance to ensure it covers your business needs as you grow and take on more employees.
Be aware the penalties also apply for failing to have employers’ liability cover when you have people working for you whether they are full-time, part-time, volunteers or apprentices.

To sum up…

Hiring the right employees is one of the biggest challenges small businesses can face, but avoiding these common mistakes can make the process smoother and more effective. By taking the time to hire carefully, investing in onboarding and development, and setting clear expectations, small businesses can build a strong, motivated team that drives success.

If you’re looking to refine your hiring process, start by evaluating your current approach—small changes can lead to big improvements!

Add Employers’ Liability Insurance from Protectivity

Protectivity offers affordable small business insurance suitable for sole traders, freelancers and other small business owners, specialising in a wide range of different activities.

Public liability is included with options to add extras such as employers’ liability and other specific industry add-ons. It’s a legal requirement to have Employers’ Liability insurance if you employ just one staff member, volunteer or apprentice with penalties for failing to comply.

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13:59:55 GMT • 26 March 2025

Expert tradespeople’s “tips and tricks” of the trade

19 March 2025

•

12 mins read

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Spring is just around the corner, and millions of us will be planning to give our homes and gardens some TLC as the temperatures increase and the days become longer.

With this in mind, we collaborated with five expert tradespeople across various specialisms (including building, joinery and carpentry, gardening, electrics, and painting and decorating) to discover some lesser-known tricks of the trade, with the hopes of increasing consumer’s knowledge, confidence, and (where relevant) competency around various DIY/home maintenance, home improvement/renovation, and building/construction topics. Read on to find out more…

Adding value to your property and refurbishment considerations

First we spoke to Mike Ryan, director of construction at Capstone Developers, who has over 20 years of experience in the construction industry. When it came to which home refurbishments can add the most value to a property, Mike shared that expanding your property’s square meterage is one of the most effective ways to increase its value, with “loft conversions being the most impactful addition I’ve undertaken”. However, Mike stresses that it’s crucial to focus on perceived value rather than just added value – “to maximize returns, you must ensure that your spending on additional square meterage aligns with local square meterage sales prices. I follow a 50-50 rule, spending no more than 50% of the added value per square meter, to avoid overspending while still achieving a strong return on investment”.

Mike Ryan of Capstone Developers

Speaking with Alex Almond Bennett from Almond Bennett Developments, a Leeds and West Yorkshire based joinery and construction company, he shared that extensions will always add value to property, an extra bedroom or bathroom will add the most

Alex also added that filling your home with really expensive items not knowing the top end market price for your house can be a mistake – for example, “if your house has a top end value of £200k don’t put a freestanding bath in and a 30k kitchen, as you will never see the return on your investment. Unless you plan on living there long term and are happy to lose that money”.

Adding to this, Mike shared that before starting any loft conversion projects, his team invites three local estate agents to evaluate the property to “help establish the square meter selling rate, which in turn determines that the homeowner should be looking to spend up to 50% of the uplift on additional square meterage”.

One of the biggest mistakes Mike sees homeowners make when planning a refurbishment is not having the correct drawings – “too often, I see people requesting construction quotes based on planning application drawings, which are simply not sufficient. Relying on these will inevitably lead to numerous variation orders, adding unexpected costs and delays”. To avoid this, it is absolutely essential to have a detailed construction drawing that “outlines every single aspect of the proposed refurbishment. This ensures clarity, accuracy, and a smoother building process”.

Home trends

Alex shared some new trends related to joinery and carpentry that he has noticed in recent months. In particular, he has seen a spike in clients looking to install media walls, feature wall paneling, and garden rooms – adding some further context, he shared “I spoke to an estate agent recently that said the most searched thing on Rightmove currently is garden room and can add up to 5%”.

Natalie Marsden, a Plymouth-based painter and decorator, otherwise known as The Lady Painter, has also noticed that installing panelling and media walls is a big trend at the moment – “if I’m honest I love it and it does bring a different texture and feature to a room. But the newest trend is something called drenching, where the woodwork is brought in the same colour as the walls”.

When it comes to specific paint colours, Natalie shared that warm pastel beige and sage green are hues that a lot of people are using.

Logo of NGM Painter & Decorator

Mike revealed that prioritising sustainability and eco-friendly construction is also a key trend for 2025, and that Capstone implements green practices across every stage of a project – “from construction techniques to painting and decorating, we actively move away from oil-based paints and maximise the use of reclaimed materials, either integrating them directly or setting them aside for future reuse”.

When it comes to electrics, Vishal Narbheram is an electrician with 15 years’ experience, and founder of Onward Shift – a mental health platform to help construction businesses and individuals thrive – shared that LED lighting strips are becoming increasingly popular. However, there’s an important warning to keep in mind – “while they look great and are energy-efficient, the drivers (which power the LED lights) can be costly to replace especially if you can’t find an exact match for your current setup. To avoid unnecessary hassle and expense, always ensure the drivers are installed in an accessible location. Placing them inside ceilings for example, can lead to major issues if they need replacing, as ceilings may have to be damaged just to reach them. A little planning during installation can save you a lot of trouble down the line”.

Gardening trends

Sean Lade, founder of Easy Garden Irrigation, who has 15+ years in gardening and irrigation, revealed four main trends that he has noticed over the last 6 months. These include boundaryless garden spaces – where he expects to see “outdoor kitchens, modular furniture, and even outdoor showers gaining popularity”. This trend particularly appeals to renters and those with small gardens, allowing them to optimise their outdoor space while maintaining flexibility.

Sean Lade of Easy Garden Irrigation

Climate-resilient gardens was another trend Sean noted, in particular implementing “sustainable gardening will continue to dominate, with a greater focus on water efficiency and resilient plant choice”. Sean revealed that gardeners are turning to “drought-tolerant plants like lavender and hardy geraniums, as well as water-saving solutions like drip irrigation, rainwater harvesting, and app-controlled irrigation systems”. He predicts that flood-resistant designs, rainwater retention systems, and dense planting methods will also rise in popularity “to help manage the increasingly unpredictable British weather”.

Vertical gardens and green walls are other trends expected to grow even further in 2025, so Alex expects creative containers that allow greater flexibility, particularly for renters or those with limited space, to become even more popular this year.

Gardeners are embracing ecotherapy, using plants for mindfulness and wellbeing. Biophilic design will continue to be popular this year. The line between indoor and outdoor living is disappearing as homeowners seek to maximise their space, so including houseplant collections that thrive indoors is also expected.

DIY tips and money saving hacks

When it comes to tasks you can DIY, Mike suggested that (if you are fit and able) you could “do some of the demolition work yourself or any other trade you are comfortable doing”. Alex shared that “most people can do anything if they are shown. Most skills are learnt over time and through practice – watch YouTube videos. be patient, and take your time. If it’s not right, take it down and try again. The more you do it, the better you’ll get”.

Logo of Almond Bennett Developments

On painting, Natalie shared that “people often think painting is easy, but it’s not if you want the best finish possible. Put the time and effort in at the beginning with the preparation and it will be beneficial come the end”. When it comes to getting the perfect finish when painting, Natalie stresses that it’s all about the preparation – “use the correct paints for the correct surfaces, make sure imperfections are filled, make sure that gaps in woodwork are filled, and sand back all surfaces in between coats”. She also shared that we should be using the right rollers for the different surfaces too.. “I tend to use a woven mohair or a fused fibre roller for woodwork rather than a medium pile/ microfibre roller that I use on walls and ceilings. Trusting the process is key”.

On wallpapering, she added that “I think people underestimate how detailed wallpapering can be and wallpaper nowadays isn’t cheap so they want the job done to the best it can be”.

When buying paint, Natalie urges DIYers to be mindful of the ‘buy cheap, buy twice’ saying… “People tend to buy the cheaper paints and it takes so many more coats because it isn’t good quality that they end up buying another lot. Stick to a good brand or a brand that is highly recommended and you can’t go wrong”.

Vish gave some ways to cut down on your electricity bills without much effort. These included switching to LED energy efficient bulbs “as they use less power and last longer, saving you money in the long run”, turning off lights and appliances when not in use (“even standby mode consumes energy, so switch them off completely”), and lowering your heating slightly – “a small reduction can make a noticeable difference without sacrificing comfort”.

Electrician Vishal Narbheram

Sean also shared some potential money-saving gardening hacks that you can use this spring… “Applying mulch around your plants reduces water evaporation, meaning you won’t need to water as often. It also helps to suppress weeds, cutting down on maintenance. Installing a drip irrigation system (that delivers water directly to plants’ roots) reduces waste by up to 50% compared to traditional watering methods like the garden hose.

“Using a water butt to collect rainwater helps reduce reliance on mains water and helps to keep costs down. Repurposing household waste (such as eggshells, coffee grounds and banana peels) makes excellent natural fertilisers, providing nutrients without the need for chemical alternatives”.

Propagating plants was another tip – “instead of buying new plants, take cuttings from existing ones to grow your own for free”.

Gardening considerations

Common gardening mistakes include watering too early in the season, not preparing the soil, mowing the lawn too short, and forgetting about pests. Sean shared that “many gardeners start watering heavily as soon as spring arrives, but plants need a balance. Overwatering in cool temperatures can lead to root rot.

“Skipping soil improvement (e.g., adding compost or organic matter) results in poor plant health and lacklustre growth. Cutting the grass too low in early spring weakens the roots, leading to patchy lawns and encouraging weed growth.

“Warmer weather brings pests like aphids and slugs. Preventative measures, such as companion planting or natural deterrents, can help protect plants before problems arise”.

Sean also noted that lawn care and weed prevention is key to a thriving garden… “your lawn starts actively growing in March and April, so give it a good start by raking out moss and thatch, aerating compacted areas, and applying a spring lawn feed. Keep mowing heights around 4cm to encourage strong, lush growth.

“Weeds also begin to take off in early spring… removing them now prevents a bigger problem later. Hoe annual weeds on dry days and hand-pull deep-rooted weeds like dandelions to stop them from spreading. Mulching beds and borders will also help suppress new weed growth”.

When to consult a professional

We also asked the experts about which tasks homeowners should always consult a professional, rather than attempting to DIY.

Mike shared that homeowners should always consult a qualified builder and a professional when a project involves structural work – “it is absolutely essential that DIY enthusiasts avoid undertaking structural modifications themselves. Proper advice, planning consents, and compliance with building regulations are crucial to ensuring safety, durability, and legal approval for any transformation”.

Alex added that you should not attempt to do anything to do with gas or electricity unless you are qualified for safety reasons. Corroborating this, Vish noted that electricity is invisible and often silent, making it unpredictable and dangerous if not handled correctly, saying that “unless you’re a skilled and competent professional, it’s always best to call a qualified electrician for any electrical work. A trained expert will ensure the job is done to current safety regulations, maintain a high standard of workmanship and most importantly, protect you from the risk of a potential fatal electric shock”.

Vish added that ovens and hobs are a major contributor to electrical fires due to loose connections, inadequate cable sizing, and poor installation – “these appliances require a significant amount of electricity to operate, making it crucial to use the correct cable size, which should be determined through proper calculations. For example, a 2.5mm cable is not sufficient to power a 6kW oven or hob, as it would draw excessive power, causing the cable to overheat and potentially ignite, creating a serious fire hazard. Ensuring the correct installation and cable capacity is essential for safety and efficiency”.

Natalie said that, anecdotally in her line of work, woodwork is the main task that she sees people consulting a professional for, due to the level of preparation and desired finish.

While many gardening tasks can be “DIY-ed”, Sean shared some jobs require expert advice, such as installing an irrigation system – “professionals can design a tailored system that maximises efficiency and prevents issues like water waste or uneven coverage. Hardscaping projects, such as laying patios, installing drainage solutions, or creating complex planting schemes, also benefit from professional expertise to ensure long-term durability. Tree pruning is another key task which is best left to arborists, as improper pruning can damage trees or pose safety hazards”.

Tradesman Insurance

Our tradesmen insurance offers the essential business cover you need to protect against potential claims, ensuring you operate securely and avoid financial losses. With public liability included, you also have the option to add extras like employers’ liability, Contractors Works cover, Plant & tools cover, tailored to the specific needs and size of your business. So, whether you operate as a sole trader or run a larger business we can offer the cover you need. Whether you’re a builder, painter or plasterer, our policy is flexible to your needs.

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14:05:28 GMT • 26 March 2025

Hiring or outsourcing staff – which is best for your small business?

18 March 2025

•

10 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Assessing Costs, Productivity, and Market Trends in 2024-2025

The UK business landscape in 2025 presents both challenges and opportunities for small businesses navigating economic uncertainty, rising employment costs, and evolving workforce demands. With increased pressure on businesses to remain agile and cost-efficient, many are reassessing their staffing strategies: should they hire full-time employees or outsource work to freelancers and contractors?

This decision has become even more critical as operating costs continue to rise. Employers face additional financial burdens such as National Insurance contributions, pension obligations, and employee benefits, all of which inflate the true cost of hiring. Meanwhile, outsourcing offers flexibility but comes with higher hourly rates and potential concerns over consistency and control.

According to recent UK business trends, outsourcing is growing in popularity, particularly in sectors like accounting, IT support, administrative services, and compliance, as companies look for ways to reduce fixed costs while maintaining operational efficiency. However, some roles remain essential for long-term stability, and businesses must carefully consider whether outsourcing is a short-term solution or a sustainable strategy.

This article explores the financial implications of hiring verses outsourcing, comparing salaries, hidden costs, and productivity factors to determine which approach is the most cost-effective in the current UK market. Through data analysis and real-world business trends, we’ll showcase key areas for small business owners to consider and decide how to structure their workforce for success in an increasingly competitive environment.

Direct cost comparison: Salaries vs. Freelance Rates

Average UK Salaries vs. Freelance Rates by Role 2024-2025

Job	Employed Annual Salary	Approx. Day Rate	Self-Employed Average Day Rate
Admin Assistant / Virtual Assistant	£29,500	£123	£150
Bookkeeper	£26,500	£110	£157
Chartered Accountant	£60,000	£250	£589
Marketing Manager	£55,000	£229	£525
Marketing Consultant	£62,500	£260	£561
HR Consultant	£42,605	£177	£691
IT Support	£32,000	£133	£210
IT Consultant	£51,250	£214	£596

Sources: Yuno Juno Freelancer rates report 2024 Glassdoor 2025 Ipse – Average Day Rates 2024

With rising employment costs, businesses must assess whether full-time hires are viable or if outsourcing is the smarter financial choice.

The cost of hiring in the current market

Rising employment costs

Hiring an employee at £55,000, such as a Marketing Manager, can cost businesses over £65,000 per year once National Insurance (15%), pension contributions (3%), and other benefits are accounted for. Even lower-paid roles, like Admin Assistants with a £29,500 salary, see substantial cost increases due to mandatory employer expenses. These additional costs make hiring a long-term financial commitment, adding pressure to businesses already struggling with rising operational expenses.

Economic uncertainty

Many small businesses in the UK face fluctuating demand, making it difficult to justify hiring full-time employees with fixed annual salaries and long-term obligations. In an economic downturn, layoffs become an expensive and often complicated process, further increasing financial instability. As businesses navigate unpredictable revenue streams, the rigidity of full-time employment may introduce risks that are harder to manage in uncertain market conditions.

While hiring in-house provides stability and a consistent workforce, the increasing financial burden and economic unpredictability make it a less viable option for businesses with variable demand. Companies must carefully evaluate whether long-term employment commitments align with their projected growth and financial resilience.

The cost of outsourcing in the current market

Higher day rates but lower long-term obligations

Freelancers and consultants typically charge premium daily rates, but businesses benefit from avoiding long-term obligations such as National Insurance, pensions, and holiday pay. For instance, a Chartered Accountant costs £589/day as a freelancer compared to £250/day for an employed counterpart. Although this means outsourcing is 2.35 times more expensive per day, it eliminates the need to cover annual employment costs, making it a financially flexible solution.

Similarly, Marketing Consultants charge £561/day – 2.45 times higher than an in-house Marketing Manager, yet businesses only pay for their services when needed, avoiding the overhead costs of full-time employment.

Outsourcing for business agility

More businesses are outsourcing to remain agile in response to economic uncertainty. IT Support freelancers, for example, charge £210/day, which is 58% higher than hiring a full-time IT employee. However, for small businesses that do not require daily IT support, outsourcing eliminates the need to pay an annual salary of £32,000.

Administrative outsourcing is only 22% more expensive than in-house hiring, making it a viable option for businesses that require occasional assistance but cannot justify a full-time role.

While outsourcing may have a higher per-hour cost, it provides businesses with greater flexibility, allowing them to scale services up or down as needed. This makes outsourcing an ideal choice for companies with project-based work or fluctuating workloads that do not justify full-time salaries.

Hidden costs of hiring vs. outsourcing

Hidden costs of hiring employees

National Insurance (NI): 15% on earnings above £9,100.
Pension Contributions: Minimum 3% employer contribution.
Holiday & Sick Pay: 28 days statutory holiday + sick pay.
Office Costs: Desk space, equipment, software licenses.

For example:

A £35,000 employee actually costs £42,000 – £45,000 per year when including benefits.
For a Marketing Manager earning £55,000, the total cost of hiring to the business may exceed £65,000 per year.

Hidden costs of outsourcing

Higher hourly rates

Freelancers and contractors often charge significantly more per hour than salaried employees. However, this is balanced by the fact that businesses are not responsible for providing benefits, office space, or long-term commitments. In some cases, the higher per-hour cost is justified by the ability to pay only for work completed rather than covering a fixed salary.

Lack of commitment

Unlike full-time employees who are dedicated to a company’s long-term goals, freelancers often juggle multiple clients. This means they may leave for other projects or become unavailable when needed, leading to disruptions and the added cost of recruiting and onboarding replacements.

Quality control

While outsourcing provides access to a global talent pool, the experience and reliability of freelancers can vary widely. Businesses must invest time in vetting candidates, setting clear expectations, and monitoring work quality to ensure consistency. In some cases, revisions or additional training may be required, which can offset initial cost savings.

For example:

A full-time employee (1,800 hours/year) costs £45,000 (including benefits).
A freelancer at £40/hr for 1,000 hours/year costs £40,000.

Maximising workforce productivity

Workforce productivity is a key factor in business success, influencing hiring and outsourcing decisions. Ensuring the right people are in place while avoiding common hiring mistakes can significantly impact efficiency and profitability. It’s widely reported there’s been a national decline in productivity since 2023, making it more important than ever for small businesses to optimise their workforce through strategic hiring, training, and the adoption of digital tools.

A productive workforce isn’t just about working harder but working smarter. Productivity can be measured by revenue generated per hour worked, and businesses that invest in efficient systems, clear processes, and the right support see the best results. The decision between hiring and outsourcing also plays a major role.

Freelancers offer fast, specialised support but may not always be available for long-term projects, while employees provide consistency but require onboarding, training, and retention strategies. Given the current economic uncertainty in the UK, many businesses are leveraging outsourcing to manage fluctuating workloads without the financial risks of full-time hires.

For roles that are essential and require long-term stability, hiring is often the best approach. However, if workloads are inconsistent or expertise is only needed temporarily, outsourcing can provide flexibility and cost savings. By finding the right balance between in-house employees and external support, businesses can boost productivity while staying agile in an evolving market.

UK businesses increasing outsourcing in 2024-2025

Percentage of Small Businesses Outsourcing (2024 & 2025 Projections)

Function	2024 (Micro <10 people)	2025 (Projected)
Accounting & Finance	28%	21%
Administrative Support	4%	12%
Customer Communications	7%	19%
Data Management	4%	7%
Human Resources	5%	5%
IT Support	19%	9%
Regulatory Compliance	2%	5%

Sources: Parseq-State-of-Back-Office-Outsourcing-2024-2025

Outsourcing continues to evolve as small businesses navigate economic pressures. While accounting and finance remain one of the most commonly outsourced functions, projections indicate a decline from 28% in 2024 to 21% in 2025, possibly due to businesses bringing these tasks in-house to reduce external costs. In contrast, administrative support outsourcing is set to rise significantly, from 4% to 12%, reflecting a growing trend of businesses seeking flexible, cost-effective assistance without hiring full-time staff.

Customer communications outsourcing is also expected to increase from 7% to 19%, highlighting the demand for external solutions in handling customer interactions efficiently. Data management remains a smaller but steadily growing outsourced function, projected to rise from 4% to 7%. Meanwhile, IT support is expected to see a notable drop from 19% to 9%, suggesting that more businesses may be investing in in-house technical support rather than relying on third-party providers.

These trends highlight how small businesses are strategically adjusting their outsourcing decisions to balance cost, efficiency, and expertise in a shifting economic landscape.

A hybrid model: The best of both worlds?

Many UK businesses are adopting a hybrid approach, hiring for core functions while outsourcing specialised or fluctuating tasks. For example, they may hire a full-time admin assistant but outsource high-level accounting, employ in-house IT support while contracting cybersecurity projects, or maintain a marketing team but bring in external consultants for campaign strategy.

In the current economic climate, small businesses must carefully decide between hiring and outsourcing. Hiring makes sense for roles essential to operations, long-term stability, and strong company culture, especially when demand justifies employment costs. Conversely, outsourcing is the smarter choice for inconsistent workloads, project-based needs, or accessing specialist skills without the commitment of a full-time salary, offering greater financial flexibility in an uncertain market.

The strategic choice in 2025

With rising employment costs and an unpredictable economy, outsourcing is becoming a strategic advantage for many businesses. While hiring ensures consistency, outsourcing provides flexibility and cost control. The best approach depends on the business model, financial outlook, and long-term goals.

Ultimately, businesses that remain adaptable, leveraging outsourcing where it makes sense while investing in core in-house talent, will be in the strongest position for success in the current UK market.

Specialist Small Business Insurance from Protectivity

Protectivity offers affordable business insurance suitable for sole traders, freelancers and other small business owners, specialising in a wide range of different activities.

Sources:
https://www.xero.com/uk/guides/increase-productivity/
https://www.ipse.co.uk/campaigns/the-self-employed-landscape/self-employed-landscape-2024
glassdoor.co.uk, payscale.com

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21:30:06 BST • 8 October 2025

Changes for employers from April 2025

6 March 2025

•

7 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

https://www.fsb.org.uk/resources-page/fsb-weekly-brief-newsletter-friday-21-february-2025.html

There has been significant discussion about the evolving nature of employment laws in the UK this year, with changes expected from multiple angles. For small businesses, staying agile can be challenging, but remaining informed and compliant is essential.

As April 2025 approaches, it is important to be aware of the changes set to take effect following the Autumn Budget in 2024. Several key updates are expected to have a notable impact on employers, with small businesses potentially facing the greatest challenges as they navigate these developments alongside other external pressures.

Understanding the key aspects of these changes and their potential implications will help businesses prepare effectively. Employers should assess how these developments may affect their operations and take proactive steps to ensure compliance. Where possible, planning ahead can help facilitate a smooth transition and minimise disruptions. Here’s a reminder of some of the key updates alongside some implications for small businesses.

National Insurance Contributions (NICs)

Upcoming Changes:

- From April 2025, employer NICs will increase by 1.2% to 15%
- The secondary threshold decreasing from £9,100 to £5,000.
- The Employment Allowance is increasing. Right now, businesses that paid £100,000 or less in employer National Insurance last year can reduce their bill by £5,000. This allowance will go up to £10,500, and the £100,000 limit will be removed, so more businesses can benefit.

Source: gov.uk

Considerations and planning:

With these changes taking effect in 2025, this is good time for small businesses to review their finances and plan accordingly. The increase in employer National Insurance Contributions (NICs) and the reduction of the secondary threshold may lead to higher payroll costs, making it essential to explore ways to manage the financial impact. Reviewing workforce costs and considering tax-efficient employment options could help businesses adapt effectively.

The rise in the Employment Allowance presents an opportunity for eligible employers to offset some of these costs, so it is advisable to ensure it is being fully utilised.

Additionally, businesses may benefit from assessing pricing structures and identifying operational efficiencies to maintain financial stability. Taking proactive measures now can help ensure continued resilience and smooth operations in the year ahead.

Changes in pay and wages

National living wage increases:

From 1 April 2025, the National Living Wage for workers:

Aged 21 and over – £12.21 per hour (6.7% increase)
Aged 18 to 20 – £10.00 per hour (16.3% increase)
Under 18s – £7.55 per hour (17.9% increase)
Apprentices – £7.55 per hour (17.9% increase)

Source: gov.uk

Considerations and planning:

Rising wages will lead to higher payroll costs, making it important for businesses to review their financial plans and ensure expenses remain manageable. Updating payroll systems to reflect the new rates will help maintain accuracy and compliance. If these changes place pressure on profit margins, businesses may need to consider adjustments such as revising pricing strategies or improving operational efficiency.

The increase in the Employment Allowance may provide some financial relief for eligible businesses, helping to offset additional costs. Proactive planning can support a smooth transition while maintaining business stability and continued support for employees.

Holiday entitlements

Key changes in holiday pay reforms:

Starting from 1 April 2024, there’s a new way to calculate holiday entitlement for irregular hour and part-year workers. Their holiday will now be based on 12.07% of the hours they actually work in each pay period, making it easier to track and manage time off. This applies both in the first year of employment and beyond.

Considerations and planning:

The new accrual method introduces a simplified approach to managing holiday entitlement, which may streamline administrative processes over time. Clearly communicating these changes to employees will be advised to ensure they understand how their holiday entitlement is calculated and what it means for them.

Updating payroll systems and internal policies in advance can help prevent misunderstandings and facilitate a smooth transition. Proactive planning and clear communication will support efficiency while maintaining transparency and fairness in the workplace.

Flexible working arrangements

Key changes with policy shift:

Employees can request flexible working from their first day on the job, instead of waiting 26 weeks.
Employees are now allowed to make two flexible working requests in a year, increasing from 1 request per year.
Employers can still refuse a request if they have a valid business reason.

Source: gov.uk

Considerations and planning:

Under the new UK flexible working laws, employees now have the right to request flexible work arrangements from their first day of employment, rather than after 26 weeks. While employers can decline requests for legitimate business reasons, small businesses may benefit from assessing how to incorporate flexibility without disrupting operations.

Reviewing work schedules, exploring remote or hybrid options, and updating internal policies can help establish a balanced and practical approach. A structured and transparent process will support compliance while contributing to employee satisfaction and retention.

Employment Rights Bill proposal

Brought to Parliament on 10 October 2024, the Employment Rights Bill includes 28 key employment law reforms designed to enhance and modernise worker protections.

Highlights of proposed changes:

Ban exploitative zero-hours contracts by ensuring guaranteed hours, fair shift notice, and compensation for last-minute cancellations.
End ‘fire and rehire’ practices by making dismissals for refusing contract changes automatically unfair unless unavoidable.
Provide day-one protection from unfair dismissal, with probationary periods allowing a simpler dismissal process.
Make Paternity Leave and Unpaid Parental Leave available from day one of employment.
Expand Statutory Sick Pay by removing earnings limits and waiting periods.

Source: gov.uk

Considerations and planning:

The proposed employment law reforms are expected to introduce significant changes for small business employers, impacting hiring practices, contractual agreements, and overall business operations. The ban on exploitative zero-hours contracts may lead to increased labour costs and reduced scheduling flexibility, while restrictions on ‘fire and rehire’ practices could make workforce adjustments more complex.

Day-one protection from unfair dismissal may require businesses to refine their hiring and probationary processes to ensure employees are a good fit before full protections apply. Additionally, expanding Statutory Sick Pay and granting immediate access to Paternity and Unpaid Parental Leave could introduce financial and operational pressures, particularly for businesses with small teams that rely on consistent staff availability.

To prepare for these changes, small businesses can take proactive steps to ensure compliance and minimise disruption:

Review employment policies and contracts to align with the new requirements.
Assess workforce planning and budgeting to anticipate potential increases in labour costs.
Engage with employees and stakeholders to support a smooth transition and maintain positive workplace relations.
Seek legal or professional guidance to understand the full implications of the reforms and implement best practices.

With significant employment law changes ahead, staying informed and adapting proactively will be essential for small businesses. Ensuring compliance across areas such as pay, contracts, leave entitlements, and flexible working arrangements will help businesses mitigate legal risks, maintain operational stability, and foster a positive work environment.

Regularly reviewing policies, updating contracts, and engaging employees in the transition process will support a smooth adaptation to the evolving regulatory landscape. Taking early action through financial planning, policy adjustments, and expert consultation can help businesses navigate these reforms effectively, strengthening both compliance and long-term resilience.

Employers Liability Insurance for Small Businesses from Protectivity

Protectivity offers affordable small business insurance suitable for sole traders, freelancers and other small business owners, specialising in a wide range of different activities.

Sources

https://www.thetimes.com/business-money/companies/article/workers-rights-law-will-bring-havoc-to-uk-economy-employers-tell-starmer-b5999ttr8

https://www.gov.uk/government/news/what-does-the-employment-rights-bill-mean-for-you

https://commonslibrary.parliament.uk/research-briefings/cbp-10189/

https://commonslibrary.parliament.uk/research-briefings/cbp-7735/

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14:07:58 GMT • 26 March 2025

How to become a bricklayer

4 March 2025

•

10 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get Bricklayers insurance from Protectivity

Do you love working with your hands, enjoy being outdoors, or want a career with solid earning potential, then bricklaying could be a great fit for you.

With the governments ambitious house building plans the construction industry is under pressure to deliver on building targets. However, it’s widely reported that there is a shortage of bricklayers, with numbers at their lowest in the UK, since 1998.* With 1.5 million new builds targeted it is estimated that 20,000* more bricklayers will be required, one of the most in demand trades across the construction industry. So, if you’re deciding on a trade for yourself, bear in mind that bricklayers can earn more than other trades – this might be an option to consider.

We’ve constructed an overview of the bricklayer landscape to help you assess if it’s the right direction for you. We’ll walk you through what bricklayers do, how to get trained, career pathways, earnings, and even how to start your own bricklaying business.

What do bricklayers do?

Bricklayers (or brickies) are the backbone of construction projects. Their job isn’t just stacking bricks – there’s a lot of skill involved – correctly laying bricks and concrete blocks that are built to last. There’s also work that involves other materials to build walls, homes, offices, and even grand architectural structures. As a bricklayer your main areas of work will be:

Reading construction plans and blueprints
Mixing and applying mortar
Ensuring walls are level and sturdy
Repairing and restoring old buildings
Working with various materials like bricks, blocks, and natural stone

If you like the idea of seeing the physical results of your work every day, bricklaying can be a very satisfying job.

Day-to-day bricklaying

There’s a wide variety to a bricklayer’s day but let’s look at a typical one:

Morning: Site prep & first bricks

Most bricklayers start early, usually by 7:30 AM. The day begins with checking plans, preparing materials, and setting up the work area. Once ready, you’ll start laying bricks, ensuring everything is level and secure using a spirit level and trowel.

Midday: Progress & coordination

After a short morning break, work continues, often coordinating with labourers, site supervisors, and other trades. Tasks might include cutting bricks to size, mixing mortar, and checking progress against blueprints. Then a midday lunch break.

Afternoon: Finishing & clean-up

The afternoon is spent progressing with the build, adding details like pointing (smoothing out mortar joints) for a neat finish. By 4 PM, tools are cleaned, the site is tidied, and the next day’s work is planned.

Essential skills for a bricklayer

To be a great bricklayer, you don’t need top grades in school, but you do need a good work ethic, and these specific skills will certainly help you out:

Physical fitness: It’s a hands-on job that involves lifting, bending, and working outdoors.
Attention to detail: No one wants wonky walls!
Basic maths skills: You’ll need to measure, cut, and calculate materials.
Good coordination: Bricklaying requires precision and accuracy.
Problem-solving ability: Every project is different, and you’ll need to think on your feet.
Teamwork: You’ll often be working with other tradespeople, from plumbers to electricians.

Average earnings for bricklayers and job outlook

Earnings vary depending on location and experience, but here’s a rough guide:

Apprentice Bricklayer – £12,000 – £18,000 per year
Qualified Bricklayer – £25,000 – £40,000 per year
Highly Experienced Bricklayer – £50,000+
Self-Employed Bricklayer – Potentially £60,000+ (more on that below)

The construction industry in the UK is growing, so skilled bricklayers will always be needed. To learn more read our blog on how much bricklayers make in the UK.

Training to become a bricklayer

Bricklaying is a skilled trade and you’ll need some valuable training to get started. There are different options to suit your preferred learning process or depending on where you are in life.

Apprenticeships (Best for hands-on learning)

Usually take around 2-3 years and result in an NVQ Level 2 or 3 in Bricklaying.

An apprenticeship is the most common way to become a bricklayer in the UK. You’ll earn while you learn, usually working four days a week with a bricklaying company and spending one day at college.

College courses (Ideal for career changers)

If you’re over 16 and want a structured way to learn, many colleges offer bricklaying diplomas or NVQs. Courses range from beginner to advanced levels, and while you won’t get paid while studying, they’re a good way to gain the skills needed for an apprenticeship or junior job. These courses are often more flexible with evening or weekend options to fit around other work.

On-the-job training

Some people start as a labourer and learn on the job. This can be a great way to get experience, and after a while, your employer may sponsor you to gain formal qualifications.

Qualifications

Whilst it’s not a requirement, if you’re looking to reach for the top jobs having a qualification will stand you in good stead. City and Guilds offer a few options. Here are some examples of different courses available:

Level 2 Technical Certificate in Bricklaying
Level 3 Advanced Technical Diploma in Bricklaying

Apprenticeship Bricklayer Level 2
Apprenticeship Craft Bricklayer Level 3

Career pathway for bricklayers

Bricklaying isn’t just about working on site all your life (unless that’s what you want!). There are several career progression opportunities:

Apprentice Bricklayer

Starting as an apprentice is the most common route into bricklaying. You’ll gain hands-on experience while earning a wage and working towards industry-recognised qualifications, such as an NVQ (National Vocational Qualification) in Bricklaying. Apprenticeships typically last around two to three years and involve a mix of on-site training and classroom learning at a college or training centre.

Qualified Bricklayer

Once you’ve completed your apprenticeship and achieved your NVQ, you’ll be recognised as a fully qualified bricklayer. This opens the door to working on a wide range of construction projects, from housing developments to commercial buildings and even large-scale infrastructure projects. As a qualified bricklayer, you can expect to earn a competitive wage and continue developing your skills on the job.

Specialist Bricklayer

If you’re interested in refining your expertise, you could specialise in areas such as:

Restoration & Conservation: Working on historic buildings and listed structures, carefully repairing or recreating brickwork in line with heritage standards.
Decorative Brickwork: Creating detailed brick patterns, arches, and ornamental designs that add architectural interest to buildings.
Refractory Brickwork: Installing heat-resistant bricks in industrial settings like furnaces, kilns, and chimneys.

Specialising can set you apart in the industry and may allow you to command higher rates for your expertise.

Site Supervisor / Foreman

With experience and strong leadership skills, you could step up into a supervisory role. As a site supervisor or foreman, you’ll be responsible for overseeing a team of bricklayers, ensuring work is completed to a high standard and within deadlines. This role involves managing materials, liaising with other trades, and ensuring health and safety regulations are met on site.

Construction Manager

If you’re ambitious and willing to take on further qualifications, such as an HNC, HND, or even a degree in Construction Management, you could progress to overseeing entire building projects. As a construction manager, you’d be responsible for budgeting, scheduling, and coordinating multiple aspects of a project, from planning to completion. This role comes with significant responsibility but also a higher earning potential.

Self-Employed Bricklayer

Fancy being your own boss? Many bricklayers choose to go self-employed, allowing them to set their own rates, choose their projects, and even build their own client base. Running your own business can be rewarding, but it also comes with added responsibilities such as managing finances, sourcing work, and handling customer relations.

How to become a self-employed bricklayer

If you want to be your own boss and earn more money, going self-employed could be a great option. Here’s what you’ll need:

Experience – Clients will want proof of your skills.
CSCS Card – Required for most UK construction sites.
Tools and Transport – You’ll need your own kit and a van.
Business Skills – Managing finances, quoting jobs, and finding clients.
Marketing – A website, social media, and word-of-mouth can help you get work.

Many self-employed bricklayers start by doing weekend jobs or small side projects before going fully independent.

Typical tools and equipment used by bricklayers

When you become a bricklayer, especially if you’re self-employed, you’ll want to start building up a range of tools, your typical toolkit should include:

Trowels – For spreading mortar
Spirit Level – To keep everything straight
Hammer & Chisel – For shaping bricks
Brick Jointer – To create neat mortar lines
Mixing Tools – For preparing cement and mortar

Safety gear, such as gloves, steel-toe boots, and a hard hat, is also essential.

Challenges and benefits of a bricklaying career

Like any job, bricklaying has its ups and downs.

Pros:

Job security – always in demand
Good earnings potential
Work outdoors, not stuck in an office
Great for people who enjoy hands-on work

Cons:

Physically demanding work
Working in all weather conditions
Early mornings and long hours

Starting a bricklaying business

If you’re ready to take the first step towards a career in bricklaying, here’s what to do:

Look for apprenticeships: Check sites like the UK Government’s apprenticeship portal.
Find a college course: Many local colleges offer bricklaying diplomas.
Gain work experience: Even unpaid work experience can help you get your foot in the door.
Network with professionals: Speak to builders and bricklayers in your area for advice.
Get your CSCS card: Most construction sites require this for safety reasons.

Bricklaying is a rewarding, hands-on career with great prospects. Whether you’re looking to start as an apprentice, switch careers, or even go self-employed, there’s plenty of opportunity in this field. So, if you like the sound of working with bricks and building something real, why not give it a go?

Get Bricklayers Insurance with Protectivity

When you’re starting out as a bricklayer you will no doubt be made aware of the safety precautions that you’ll need to follow to protect yourself from risks and dangers at work. Insurance is another key aspect to consider and having specific trades insurance is essential.

Protectivity’s bricklayers’ insurance can provide specialist cover for risks you face offering your bricklaying services.

Choose the type of cover that best meets the needs of your business, with a range of benefits. Our policies include public liability up to £5 million as standard; you then have the option to add Employers’ Liability insurance, Contractor Works cover, Plant and Tools cover, financial loss and employee tools (only if you’ve included the other benefits). That way, when unforeseen circumstances occur, you can ensure you’re protected from unexpected costs.

Find out more about our tradesman insurance and get a quote online.

Get Bricklayers Insurance from Protectivity

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14:09:31 GMT • 26 March 2025

Side hustle tax UK: when and how to pay it

12 February 2025

•

6 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Side hustles have become the norm for millions of Brits, whether it’s selling handmade crafts, freelancing, dog walking, or working a second job.

According to data from Finder, the side hustle economy in the UK is booming with 39% of Brits now having a side hustle as an additional income stream and the average side hustle making £210 a week (or £914 a month).*

With the rising cost of living, more people are looking for extra ways to boost their income – but when does this attract the attention of HMRC? Well, it looks like it has.

The latest figures from HMRC report that 65% of people operating sides hustles are generally unaware they should be registered for tax. **

In fact, HMRC have just announced a new campaign ‘Help for Hustles’ that aims to help people understand their side hustle tax obligations and tackle what they call the ‘hidden economy’.

If you earn extra income from a side hustle or ‘odd jobs’ you could be failing to pay the tax you owe, which may lead to fines down the line. We’ve picked out some key points that should help you understand whether you’re operating a side hustle, how HMRC tax side hustles and if you need to pay tax on yours.

What counts as a side hustle?

A side hustle is any work you do outside of your main employment that earns you extra cash. Whether it’s a passion project, weekend gig, or a second job, if you’re making money, it’s worth knowing the tax rules. Here some popular side hustle categories:

Buying or making things to sell – Selling handmade or refurbished items on platforms like Etsy, eBay, Vinted, Depop, or Amazon Handmade.
Having a side gig – Working part-time or taking on second jobs, such as tutoring, bar work, or weekend shifts.
Working for yourself across multiple jobs – Freelancing, gig economy work (EG. TaskRabbit jobs), or offering services.
Content creation & influencing – Earning money through YouTube, TikTok, blogging, social media sponsorships, or affiliate marketing.
Manual labour & services – Dog walking, pet sitting, cleaning, property maintenance and gardening.
Renting out property – Earning money through short-term lets (Airbnb), spare room rentals, or property subletting.

Even if it’s just a hobby, you may still need to pay tax if you’re earning over a certain amount.

When do you need to pay side hustle tax?

You can earn up to £1,000 a year, tax-free under the Trading Allowance.

Earning less than £1,000? No need to declare it.
Earning more than £1,000? You must register with HMRC and report your income.

When does a side hustle become a small business?

Not sure if your side hustle has outgrown its “extra cash” phase? Here’s when it’s time to treat it as a business:

Earnings exceed £1,000 per year (you must register with HMRC).
You work consistently and professionally rather than as a one-off.
You invest in branding & marketing (e.g., website, social media ads).
You have business-related expenses (equipment, materials, insurance).
You’ve registered as a sole trader or limited company.

Hobby vs. Business – What’s the Difference?

If you’re making money as a one-off (e.g., selling an old laptop on eBay), it’s just personal income. But if you’re regularly selling goods or providing a service for profit, HMRC considers it a business.

Examples of when tax applies:

Selling handmade jewellery on Etsy every month.
Offering personal training or fitness coaching.
Running a dog walking or pet sitting service.
Cleaning houses or offering property maintenance services.

If your goal is to make a profit rather than just cover costs, you’re running a business, so tax applies, and it’s worth getting financial advice to stay compliant and tax efficient.

How to register & declare side hustle tax UK?

If you’re earning over £1,000, follow these steps:

Register as self-employed on GOV.UK.
Keep track of your income & expenses throughout the year.
Complete a Self-Assessment tax return (Deadline: 31st January each year).
Pay any tax and NICs owed based on your profits.

It’s smart to set aside around 20-30% of your earnings for tax, so you’re not caught off guard.

You can find out more about the new HMRC side hustle tax campaign on their website and how it’s relevant to you.

What you can claim back

It’s also worth knowing, you don’t pay tax on all your income – you can deduct expenses before tax is applied.

Common Tax-Deductible Expenses

Equipment & tools (e.g., dog grooming kits, baking tools, event decorations)
Travel costs (mileage, petrol, public transport for business purposes)
Marketing expenses (website costs, social media ads, business cards)
Office costs (if working from home, you can claim a portion of bills)

Keep all receipts and records to make sure you get the maximum tax relief!

Common mistakes & how to avoid them

Not tracking income & expenses properly – Use a spreadsheet or accounting app.
Assuming you don’t need to register – Even small earnings can require tax reporting.
Missing deadlines – Late tax returns = hefty fines from HMRC.
Forgetting to save for tax – Keep a portion of your earnings aside.

As HMRC raise awareness for their new campaign the key message is to help avoid these mistakes.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:

“We know many people are turning their hobbies and interests into successful businesses and we’re here to help them understand their tax obligations.

Nobody wants an unexpected tax bill, so anyone with a side hustle should check HMRC’s straightforward guide and make sure they’re getting their tax right.”

Finally – side hustle tax obligations are up to you

By launching a new campaign HMRC have shown commitment to tackle the ‘hidden economy’ of undeclared income, which they estimated at £2.2 billion in the 2022-2023 tax year. **

From HMRC’s perspective paying taxes is your responsibility so if you fail to follow the rules and get caught, excuses and common mistakes are unlikely to be valid, so make sure you’re fully aware where you stand.

* Source: https://www.finder.com/uk/business-banking/side-hustle-statistics
**Source: https://www.gov.uk/government/news/love-your-side-hustle-make-it-tax-official-this-valentines

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