Archive for the ‘Uncategorized’ Category

Strategic Growth: Lawrence Stephens Appoints Zahra Shah to Strengthen Real Estate Finance Practice

Posted on: July 4th, 2025 by Ella Darnell
Lawrence Stephens is pleased to announce the appointment of Zahra Shah as Senior Associate to its Real Estate Finance team.
 
Zahra joins us from a high street firm, where she was a Partner in the Real Estate department. She brings extensive experience across both residential and commercial property matters, with particular expertise in real estate finance. Zahra qualified as a Solicitor in 2019, having previously worked as a real estate paralegal at the Department for Education. Her appointment further strengthens our team’s capabilities and reflects our continued commitment to growth.
 
Head of Real Estate Finance, Ann Ebberson said “I’m pleased to welcome Zahra Shah to Lawrence Stephens and our Real Estate Finance team. Zahra brings strong and diverse sector experience, that will further strengthen our team’s capabilities. Her appointment marks another exciting step in the firm’s continued growth and reflects our commitment to expanding our expertise and commercial reach.

Why Agile Leadership Is Key to Law Firm Culture and Expansion

Posted on: July 3rd, 2025 by Natasha Cox

Chief Operating Officer Johnny Nichols comments in Legal Practice Management magazine on how Lawrence Stephens’ strong people-first culture, and focus on developing an effective leadership model, has enabled the firm’s continued growth and development.

Johnny’s comments were published in People Management Magazine’s July edition, and can be found here.

How would you describe your firm’s current leadership model? 

“Our leadership model is both flat and lean. Flat in that we have a number of departments focused on particular legal disciplines and markets, but all with a say in the management and direction of the firm. Lean in that there are few lawyers who have time targets devoted to this.

“There are essentially three layers of leadership: the Senior Directors, who own the firm, Directors, who lead on the legal services we offer, and the Executive Committee who take day-to-day decisions on behalf of the firm.

“A flat and lean organisational structure, with fewer management layers, offers several benefits including faster decision-making, improved communication, increased employee autonomy, and a more agile response to changes with little need for consensus building. This makes us more agile and able to take advantage of opportunities where other firms may struggle. A recent example of this was the recruitment of a Real Estate team from Memery Crystal during its recent crisis, from under the noses of several larger firms. We were able to meet with and agree terms quickly and decisively, which resonated well with those teams affected.

“However, we recognise that this flat structure may become unwieldy as the firm grows and more streamlining may be required.”  

Have you considered or introduced new roles to lead certain aspects of your firm?

“Having recognised the need for growth and the limitations of Directors undertaking these roles (with neither the time nor the expertise) the firm took the decision to firstly recruit a Chief Operating Officer (me) to take the lead on the establishment of a fully functioning and appropriately empowered Business Services team. This included a new Head of Learning and Development, Head of Risk and Compliance, and more recently a Chief Finance Officer. As law firms become more sophisticated and the level of compliance and regulation has increased, law firms have had to recruit specialists into these roles in order to meet these. Having these people on board also relieves fee earners from tasks they were fundamentally ill-equipped for anyway, allowing them to focus on their fee earning roles.”

What steps is your firm taking to develop business and leadership skills among fee earners?

“Fee earners are not taught this at law school and to expect them to be able to just pick this up ‘on the job’ is unrealistic. Developing business and leadership skills through formal programmes is then really important and we are providing more training for line managers on their role, enabling them to better support and motivate staff.

“Formal programmes now exist to offer firmwide DEI training, and regular ‘lunch and learn’ events foster a collaborative, knowledge sharing environment. These often involve using existing expertise at the firm to upskill others, which in itself is a developmental activity. On top of these firmwide approaches, targeted groups now have new training programmes to support through crucial periods of their career, for example at Senior Associate level. More bespoke training is also available, including targeted coaching for staff where required.”

Succession planning is a common challenge among SME firms – how is yours preparing the next generation of leaders? 

“Recognising the limitations of the lockstep model, our firm has already moved away from this and is now constituted as a limited company. A limited company provides a more structured framework for managing the business, with clear roles for directors and shareholders, which is beneficial in a larger firm with complex operations.

“In terms of diversity, we work hard to ensure that everyone at our firm is treated fairly and equally. This includes our recruitment processes, career development, recognition and reward. As part of this initiative, the firm has agreed a target of 25% females in Directorship by 2026, and we look set to achieve this target by next year.”

How important is it for firms to shift focus away from individual performance exclusively? What practical steps are you taking to encourage effective collaboration?

“We have hosted a number of training sessions over the last year for cohorts at different stages of their careers which included discussions on the themes raised in the DCM Insights research.  We recognise the need for effective collaboration across all our activities and our own efforts to encourage this include a move away from purely  ‘X times salary’ targets for individuals. These are now considered at department level and budgets set to support work being fed down to more junior levels and to allow time for more managerial/strategy work for those more senior.

“When it comes to feeding back, individual reviews are still seen as important, but should always be considered in the wider picture, and 360 degree feedback is encouraged.”

Looking ahead to 2030, what defining leadership qualities or frameworks will separate thriving firms from struggling ones?

“Many firms talk about their unique culture being the key to their success. There is considerable evidence to support the view that a strong and distinct culture can lead to increased revenue, employee satisfaction, and improved client satisfaction. Against this positive backdrop, there is also growing evidence of increasing consolidation of law firms and potentially increasing external investment in law firms in the lead up to 2023. Both these themes introduce a level of change and potential disruption and it’s my view that only firms with a strong and engaged leadership will be able to maintain and develop a positive culture in the light of such change in what is regarded as vital to a thriving firm.

“So, looking ahead, I think that the most important quality for successful law firm leaders will be the ability to not only maintain and manage an existing culture, but be able to adapt to external influence brought about through combining teams and firms, and the involvement of any external investors along the way.”.

To find out more about our story, values and management approach, please click here

 

FCA Widens Scope of Non-Financial Misconduct Rules

Posted on: July 3rd, 2025 by Natasha Cox

Senior Associate Emma Cocker comments on the FCA’s announcement that it will treat bullying and harassment as serious ‘non-financial misconduct’ across all regulated firms – not just banks.

Emma’s comments were published in Personnel Today, 2 July 2025, and can be found here.

“For too long there has been a mismatch between what the FCA’s rules say about non-financial misconduct and what has actually been said and done about such behaviour.

“Under these new guidelines, poor personal behaviour will be treated in the same way as financial misconduct, meaning it will need to be shared in regulatory references to the FCA. As such, it will be much harder for individuals to move from firm to firm to escape their disrepute.

“In addition to the implications on individuals, the new rules will help the regulator to spot cultural failings in firms, which in turn helps to identify instances of poor decision making and risk management, both of which are vitally important qualities in this industry.”

For more information on our employment services, please click here

How to Protect Your Reputation During Major Legal Disputes

Posted on: July 3rd, 2025 by Natasha Cox

Director Dominic Holden comments in City AM on how managing media narratives during litigation can be crucial in helping clients protect their reputation and limiting commercial damage.

Dominic’s comments were published in City AM, 3 July 2025, and can be found here.

“Complex and high-stakes litigation often involves serious allegations being made which are then reported on by the press long before any Judgment is handed down. Winning in court is important, but so too is managing the court of public opinion.

“Letting the narrative run against a client in the lead up to trial can be incredibly damaging to senior management, stakeholders and share price. The adverse news (which may have been generated with the aid of the other side’s PR advisors) can even find its way into evidence and be used to support the other side’s arguments.

“Careful use of PR advisers to ensure the client’s position is fairly reflected in the media is a valuable tool to help avoid a client’s claim from being unfairly prejudiced, and to protect the client’s wider commercial interests.”

To find out more about our litigation and dispute resolution services, please click here

Anti-Doping Case Dismissed: Lawrence Stephens Defends Rugby Star Successfully

Posted on: July 3rd, 2025 by Natasha Cox

Angelique Richardson, Senior Associate in the Sports and Entertainment team at Lawrence Stephens, together with Christopher Saad and Ellie Horan of 2 Bedford Row, successfully acted for professional rugby league player Jake Maizen in proceedings brought by UK Anti-Doping before the National Anti-Doping Panel.

The matter was referred to Lawrence Stephens through the Sport Resolutions Pro Bono service, which provides eligible athletes with access to legal representation in anti-doping and disciplinary matters.

Mr Maizen was cleared of an Anti-Doping Rule Violation (ADRV) for the use of cocaine In-Competition, contrary to Article 2.2 of the UK Anti-Doping Rules. The charge was formally dismissed following a contested hearing in April 2025.

While Mr Maizen admitted to a separate ADRV under Article 2.1, relating to the presence of a prohibited substance in his system, the Tribunal accepted that the ingestion occurred Out-of-Competition and was unrelated to sporting performance. As a result, the standard three-month period of ineligibility was backdated and deemed already served by way of provisional suspension. Mr Maizen has therefore been immediately eligible to return to the sport.

The decision of the National Anti-Doping Panel can be viewed here.

For more information on our work in sports and entertainment law, please see here. 

Lawrence Stephens makes nine promotions

Posted on: July 1st, 2025 by Natasha Cox

Leading full-service law firm Lawrence Stephens is proud to announce the promotion of nine colleagues from teams across the firm, effective from 1 July 2025. These promotions reflect the contribution made by them in the delivery of services to our clients and to the wider firm.  These follow a year of continuing growth for Lawrence Stephens with strong demand felt in all areas.  

William Bowyer becomes a Senior Associate in the Sports and Entertainment team.  William advises on a mix of non-contentious and contentious matters in sport and was recognised earlier this year in the first cohort of the International Sports Convention‘s 30 Under Thirty Awards.

Rosalin Gautam becomes a Senior Associate in the Dispute Resolution team. Rosalind acts on matters relating to breach of contract, partnership and joint venture disputes, shareholders disputes, professional negligence and individual and corporate insolvency.   

Priya Patel becomes a Senior Associate in the Dispute Resolution team. Her experience covers a broad range of civil and commercial disputes for individuals and businesses.

Angelique Richardson becomes a Senior Associate in the Sports and Entertainment team. Angelique was recognised as a ‘Leading Associate’ in the latest edition of Legal 500, as well as also being recognised in the first cohort of the International Sports Convention‘s 30 Under Thirty Awards.

Harshita Samani becomes a Senior Associate in the Corporate and Commercial team. Harshita is both multilingual and dual-qualified in India as well as well as in England and Wales. She works on complex and high-value transactions involving asset and share sales and purchases for a diverse range of clients.

Lucy Cadley becomes an Associate in the Corporate and Commercial team. Lucy trained at the firm and now advises on a range of corporate and commercial matters, which include share and asset sales, company restructurings, private equity, mergers & acquisitions and commercial contracts.

Emma Clifford becomes an Associate in the Real Estate team. Emma also trained at the firm and was responsible for setting up LawLinks, a professional network event series for junior lawyers in the firm.

Isobel Moran becomes an Associate in the Corporate and Commercial team. Isobel trained at the firm before joining the Corporate and Commercial team. She advises on all aspects of corporate and commercial law, including share and asset sales, acquisitions, company restructuring and shareholder agreements.

Henry Richards becomes an Associate in the Private Wealth and Succession Planning team. Henry specialises in private wealth disputes, representing beneficiaries of estates and trusts, those excluded from inheritance unfairly, trustees, executors, attorneys and deputies.

Steven Bernstein, Managing Director at Lawrence Stephens, commented: “The promotion of these nine exceptional colleagues recognises their dedication, expertise, and contribution to our clients and the firm. They also reflect our commitment to developing, supporting, and encouraging the remarkable talent that exists within the firm.  We are excited to see how they progress in their new roles.”

Sports Law Spotlight: Lions Warn Rugby Australia Over Potential Contract Breach

Posted on: June 30th, 2025 by Ella Darnell

Senior Associate William Bowyer comments on the dispute between the British and Irish Lions and Rugby Australia, and discusses whether this could escalate into legal action over breach of contract.

Will’s comments were published in City AM, 23 June 2025, and can be found here.

“If, as Lions CEO Ben Calveley states, the formal tour agreement between the British and Irish Lions and Rugby Australia includes a specific clause governing which Test players must be released to participate in fixtures leading up to the Test series, not just the Tests themselves, then the Lions would likely have grounds for a breach of contract claim.

“An international sports dispute would have to be carefully considered from a jurisdictional standpoint and the contract will likely contain a clause dealing with which laws and courts or private arbitration house would consider the issue.

“With major commercial stakes – from broadcast rights to sponsorship and ticketing – both parties are under pressure to find a swift, negotiated resolution, while leveraging their respective contractual positions.”

For more information on our Sports law services, please click here.

The Fineprint: Launch Edition – July 2025 – Insights for Founders

Posted on: June 27th, 2025 by Alanah Lenten

A note from the Editors:

We’re pleased to launch Lawrence Stephens quarterly newsletter designed for founders, entrepreneurs, and owner-managed businesses who are passionate about growing their ventures and staying informed about the latest industry trends and legal updates. If you’re a business owner, startup founder, or an entrepreneur looking to gain insights, practical advice, and inspiration, this newsletter is for you. Whether you’re just starting out or looking to scale your business, The Fineprint offers content written with you in mind.

– Charlotte Hamilton and Alanah Lenten

Subscribe here if you’d like this newsletter delivered straight to your inbox 

 

In this edition

View as PDF

How to Structure Your Business Like a Socialist

Inspired by London’s biggest festival of ‘socialist ideas’ we put our lawyers through a thought experiment: we explore how to build a business on socialist values – without sacrificing entrepreneurial ambition. From share schemes to employee ownership, Leigh Sayliss and Oliver Corbally explain how you can be Capitalist with a conscience.

 

Beyond the Crowd: The People Powering Events and the Contracts That Support Them

Whether you’re running Glastonbury or Wimbledon, successful events are powered by a complex team. Therefore, getting employment contracts right is no longer optional. Each status comes with different rights, responsibilities, and risks. Becci Collins breaks down what organisers need to know about worker classification and the key risks.

 

Burberry, Budgets & Booms: What’s Really Going On in the UK Economy

Retail’s recovering. Luxury’s wobbling. Growth is peaking. What does it all mean for your business? Charlotte Hamilton breaks down the headlines into real-world signals and how to respond.

 

How to Get Disqualified as a Director

Ever wondered what gets directors banned for up to 15 years? From misusing Bounce Back Loans to dodging tax, Lefteris Kallou outlines the most common (and costly) mistakes directors make and how to avoid them.

 

How the UK can back Crypto Innovation with Action

The UK has an incredible opportunity to lead the world in digital assets and blockchain innovation, so why are we still stuck in first gear? Matt Green explores the steps that could help the UK move from ambition to action, from appointing a blockchain envoy to launching a coordinated digital asset strategy.

 

Why Founder-Led Businesses Are Reshaping the UK Economy

From gritty growth stories to game-changing innovation, founder-led businesses are rewriting the rules. Alanah Lenten sat down with John Maffioli to understand why he started FEBE and what FEBE’s Growth 100 tells us about the future of UK business.

 

Thinking of Selling Your Business? Why the Exit Isn’t Always the Fairytale Ending

We teamed up with coach and founder Lucy Scarlett to explore the emotional reality of business exits – from loss of identity to post-sale guilt – and what you can do to navigate it with clarity.

If you have any feedback, queries or comments on any of the above articles, please get in touch with Alanah Lenten.

How To Structure Your Business Like A Socialist

Posted on: June 27th, 2025 by Alanah Lenten

With the UK’s biggest socialist festival approaching in July.

It got us thinking…

What would it look like to structure a business on socialist principles, without giving up the entrepreneurial spirit that fuels start-ups and scale-ups?

We put our lawyers through a thought experiment: how would you build a business that shares success, supports workers, and still grows fast?

Turns out, you don’t need to throw out capitalism entirely to build a company rooted in fairness. The UK tax system, perhaps surprisingly, offers smart, practical ways for business owners to share the rewards of growth with the people who help build it, without sacrificing financial success.

Here’s how to structure your business with socialist values and make the system work for your team, not just for you.

From Startup to Shared Success

The early days of running a business are tough, ‘cash is king’, and conserving it is critical. One creative way to extend your runway? Share equity with the people who are helping you grow. Giving shares in a new company to the people who work for it can save the company hard earned cash, leaving more of the venture capital funds available to grow and develop the business. 

Issuing shares to key team members early on not only reduces your wage bill, it also aligns their interests with your interests as founding owner. Better still, if your business succeeds, those early shares can turn into a meaningful reward for your team.  Having shares in a business is not as secure as being rewarded with a salary and there is even a risk that the value of the shares may fall – and the tax system recognises this risk, taxing capital gains more lightly than income. Although the worker may be taxed on the value of the shares they receive if you bring them into the business before the business has started to grow, the value of the shares should be low.  Any increase in value will then generally be taxed as a capital gain – giving a lower rate of tax than earnings. 

For those who join later in the game, when your company already has value, growth shares may be more appealing.  These only have value if the company grows, allowing people to benefit from the growth in the business to which they have contributed – with the benefit that they reduce any tax charge when the shares are issued. 

The key is to plan early. Don’t wait until your company’s value has risen; that’s when the tax charges get trickier.

Options That Support the Collective

As your business grows, you can offer share options rather than immediate shares. These let employees buy shares later at a set price – usually the current value – meaning that if the company succeeds and the shares go up in value, the worker can buy them at a discount, but if they go down, the worker doesn’t lose out.

To make this even more effective there are option schemes that allow the benefit of the lower capital gains tax rates when the shares are sold:

  • Use EMI (Enterprise Management Incentives) for maximum tax efficiency, these are tailored for small, fast-growing businesses.
  • Or try CSOP (Company Share Option Plans) which are still tax-advantaged and great for rewarding key team members.

Both schemes are designed for strategic flexibility so you can choose who benefits.

Want Everyone In? Go Egalitarian

There are also schemes designed for all employees, not just a chosen few:

  • SAYE (Save As You Earn) lets workers save monthly and buy shares at a discount after 3 or 5 years.
  • SIPs (Share Incentive Plans) let you gift shares or match employees’ own investments with bonus shares, all in a tax-efficient wrapper.

These can create a culture of collective ownership and long-term thinking, where everyone has skin in the game.

If You Really Want to Go Full Co-op

A business owner can allow workers in the business to acquire shares and have an involvement in the profits of the business – but what about the owner who wants to retire or sell up and hand over the business to the workers?  Well, if you’re inspired by John Lewis, Arup or Mott MacDonald, and you’re thinking long-term legacy, Employee Ownership Trusts (EOTs) might be for you.

Selling your business to your employees via an EOT can:

  • Allow you to sell tax-free (as long as the trust acquires at least 50% of the business).
  • Unlock tax-free bonuses (up to £3,600 a year) for employees going forward.

As a final bonus for the workers who were given EMI Options, they should be able to exercise their options and receive shares (EMI Shares) at a discount.  Even though they will have received the EMI Shares as a benefit of their employment, any gain they make on selling them should be subject to the lower tax rates that apply to capital gains (as against income).

It’s an elegant succession plan for founders who want to retire and leave something meaningful behind for the people who helped them create and grow their business.

Leaving a Legacy: Social Values Beyond the Business

For founders thinking long-term- beyond even their active role in the business- there’s another layer to consider: charitable giving through Wills. Allocating a portion of your estate to causes that align with your values allows you to extend your impact well beyond your lifetime. Not only can this support causes close to your heart, it can also reduce the tax burden on your estate, allowing you to give more both to your beneficiaries and to charity.

Whether you want to leave a specific bequest or dedicate a percentage of your estate to charity, these actions reflect the same values of social responsibility and shared benefit that underpin everything from employee ownership to ethical investing.

Sharing Success Isn’t Just Socialist –  It’s Smart

Founders often fear that “giving away” equity weakens their position. But what if sharing actually strengthens your business?

Workers who own a piece of the company are more motivated, more loyal, and more invested, quite literally, in its success. With the right structure, you’re not handing over control. You’re building a team of mini-founders who want the business to win. 

And yes, it’s possible to do this without bleeding cash, losing your edge, or drowning in tax bills. The UK system, for all its quirks, supports smart, inclusive entrepreneurship.

The Bottom Line

You don’t have to be waving a red flag at a rally to structure your business like a socialist. But if you care about people, equity, and purpose – and you want to build a business that reflects those values – there are real, tangible tools at your disposal.

So this July, while the crowds at the socialist festival debate the future of work and ownership, ask yourself: what kind of business do I want to build?

Because with the right strategy, you don’t have to choose between profit and people. You can have both.  Letting your workers have shares may leave you with a smaller percentage of the equity – but the business is so much larger that everyone wins.

If you’d like to explore how this could work in your business- whether you’re raising funding, building a team, planning your exit or shaping your legacy – do get in touch. At Lawrence Stephens, we’re here to help founders build businesses that reflect who they are, and what they believe in.

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens

Beyond the Crowd: The People Behind Events and the Contracts That Empower Them

Posted on: June 27th, 2025 by Alanah Lenten

As Glastonbury welcomed hundreds of thousands of festival-goers this summer, most of us were preoccupied with set times, glitter face paint, and avoiding sunstroke. But behind the scenes, it’s not just the headliners who deserve your attention. For founders, entrepreneurs, and anyone involved in running events—whether that’s a one-off music festival, tennis events involving copious amounts of strawberries and cream, or a touring experience—it’s crucial to understand who you’re hiring, how, and what that means legally.

The rise of the gig economy reshaped the employment landscape. It’s provided event organisers with the flexibility they require and permitted individuals to work on their terms. Employers have often assumed short-term or freelance roles offer a convenient solution to the running of large scale events. However, the gig economy is now itself being reshaped following legal challenges focusing on providing greater protection for those engaged in working arrangements that are a-typical. In 2017, 700 temporary workers were terminated by Glastonbury organisers after two days when they had reported promise of 2 weeks work, leaving them stranded having travelled from overseas to help with the Glastonbury clean up and left individuals out of pocket. This led to alleged mishandling of employment contracts and subsequently a tidal wave of negative PR for the organisers. 

So, as you plan your next big event, here’s what you need to consider about employment status; and why simply calling someone a “freelancer” doesn’t make it so.

From Headliner to Hospitality: Who’s Working Your Event?

Every successful event is powered by a complex team: from the riggers and sound engineers, to brand ambassadors, hospitality staff, and social media teams. Whether you’re a founder outsourcing your activation at a major event, or you’re hosting something yourself, you’ll likely be engaging a mix of:

  • Employees
  • Workers
  • Self-employed contractors

While the Government has proposed removing the worker status, for now, we retain the three. Employees have the most comprehensive employment rights, while workers have fewer (for example, they do not have protection from unfair dismissal). Self-employed contractors generally only have the rights contained within their agreements with their client.

Each status comes with different rights, responsibilities, and risks.

Why Getting It Wrong Isn’t an Option

It might seem harmless to take a “casual” approach for short-term or seasonal work. But misclassifying someone, intentionally or not, can result in serious consequences. And in an era of rising scrutiny, your event might be over in a weekend, but the consequences could last much longer.

Some of the most common pitfalls include:

  • Misuse of zero-hour contracts
    In 2017, the organisers of the Glastonbury Festival were accused of hiring 700 workers from across Europe on zero-hour contracts to act as litter pickers, cleaning the site after the festival had ended. The workers were expecting two weeks of paid employment. However, they were fired two days later, leaving hundreds stranded in the Somerset countryside and out of pocket.
  • Unpaid holiday pay and rest breaks
    Individuals are often required to work back-to-back 18-hour days, which could breach the legal minimum requirement of rest breaks prescribed by the Working Time Regulations 1998.
  • Health and safety breaches
    The performing arts union, Bectu, surveyed 100 music festival workers. The results were worrying; half of the people questioned reported feeling unsafe at work, and a third reported having experienced a risk to their physical safety.
  • Non-payment of tax and National Insurance
    A nightclub owner is due to be sentenced this year for deducting tax and National Insurance from employees’ salaries but failed to pass the money on to HMRC.
  • Employment tribunal claims for unfair dismissal or unlawful deductions
    In March 2022, P&O Ferries sacked 800 seafarers without notice, replacing them with cheaper agency workers. Many of the affected employees filed employment tribunal claims for unfair dismissal and unlawful deductions from wages. The company admitted it knowingly broke the law by not consulting unions or employees, which is required under UK employment law.

It is important that organiser’s get employment status correct as:

  • There is implied obligation between employers and employees, such as the mutual duty of trust and confidence;
  • A number of core legal protections are only applicable to those classed as employees, such as unfair dismissal;
  • Only employees are covered by the Acas Code of Practice on Disciplinary and Grievance Procedures;
  • The tax position of an individual depends on their employment status, as determined by HMRC.
  • Employers are vicariously liable for acts done by its employees in the course of their employment, and
  • There are different implications for handling personal data, under UK GDPR depending on an individuals employment status.

So how can you avoid these pitfalls?

5 Key Tests to Get Employment Status Right

If you organise one off, or short-term events,  you must remember employment status still applies and you cannot determine the nature of your relationship with the individuals you engage by simply putting a label on it. Proactive steps must be taken to assess the employment status of employees, workers, and self-employed contractors. To achieve this, it’s important to consider how the relationship operates on a day-to-day basis:

1. Control

The greater the company’s control over individuals, the more likely they are to be considered employees. Are you deciding when, where, and how they work? If so, they’re likely not self-employed.

2. Integration

The more integrated they are into the company, the more likely they are to be considered an employee. Are they part of your team, required to use your branding, attend meetings, and follow company policies and procedures?

3. Mutuality of Obligation

Are you obligated to provide work? Are they obligated to accept the work you offer? If so, this would indicate an employment status.

4. Personal Service

Is the individual required to perform the duties personally rather than having the right to send a substitute?  This is a characteristic typically associated with employment.

5. Financial Risk and Independence

The more financial risk an individual bears, the more it will indicate self-employed status. Are they using their own equipment, obtaining their own insurance, invoicing you, and handling their own tax?

To summarise, the more “yes” answers to the first four, and “no” to the last, the more likely you’re dealing with an employee or a worker and not a contractor.

So What Should You Do?

Assess the relationship honestly
Don’t rely on titles, look at how the role actually operates on a day to day basis. Use legal guidance or a checklist to help.

Put it in writing
Always issue the correct employment documentation which clearly reflects how the relationship operates in practice.

Provide a safe working environment
Think of rest breaks, access to toilets and water, and protection from excessive hours, these aren’t just “nice to haves”; they’re legal requirements. You have a duty to provide a safe working environment for all types of workers.

Budget for compliance
Proper contracts might cost more up front. But compare that to a tribunal claim, regulatory fine, HMRC fines and interest, and the reputational hit of being the next Glastonbury scandal.

The Encore: A Better Way to Power Events

In the post-pandemic world, festivals and live events face tighter margins than ever. But cutting corners on employment compliance is a false economy. The events industry depends on a passionate, skilled and often overworked workforce, treating them properly isn’t just the law, it’s good business.

If you’re a founder organising an event, outsourcing to an agency, or even hiring ad-hoc help for the summer season, take a moment to check your contracts. Because while you may not be the headline act, you’re responsible for the whole show.

Get in touch with Becci Collins if your employment contracts need reviewing.

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens

 

 

 

 

 

How to Get Disqualified as a Director

Posted on: June 27th, 2025 by Alanah Lenten

Fancy having your name proudly listed on the Companies House Register of Disqualified Directors? No? Didn’t think so.

But if, hypothetically, you did want to ruin your entrepreneurial reputation, be barred from running a business, and have your conduct investigated by the Insolvency Service, then you’re in luck – we’ve got the perfect guide to getting disqualified as a company director. Be aware: it’s not glamorous, it’s not clever, and it could leave you out of business (and pocket) for up to 15 years.

What Is Director Disqualification?

Director disqualification is a legal order made under the Company Directors Disqualification Act 1986 that bars individuals from acting as a company director or even being involved in managing a company, for a set number of years. You don’t have to hold the title of “Director” for it to apply, either. If you’re effectively acting as one, you’re fair game.

The Insolvency Service, usually tipped off by insolvency practitioners, take the lead in investigating misconduct and seeking disqualification orders or voluntary undertakings – their outcomes report noted that in 2024-25 a whopping 1036 directors were disqualified (736 being from Covid Loan abuse).

This report serves as the inspiration for this article;  it’s not actually about how to get yourself banned from boardrooms, it’s about how to avoid it. Because knowing what not to do as a director is just as important as knowing what to do. And if you’re a founder, entrepreneur or startup director, understanding these pitfalls could save your business… and your reputation.

8 Fast-Track Ways to Ruin Your Boardroom Career

If you’re looking for a masterclass in what not to do, here are some sure-fire ways to end up disqualified:

1. Bounce Back Loan Abuse
Overstating your turnover or splurging the funds on a privately owned Tesla instead of your company? That’ll do it. This is currently the number one reason for disqualifications, often carrying no less than a 7-8 year ban, even for minor slip-ups (ouch!).

2. Fraudulent Transfers
Stripping your company of assets to keep them out of reach from creditors is a fast track to the naughty list.

3. Wrongful Trading
Continuing to trade while your company is insolvent (and harming creditors in the process) shows unfit conduct.

4. Ignoring the Books
If your accounting records are in worse shape than your inbox on a Monday morning, that’s a red flag. Failing to maintain proper books is a serious offence.

5. Ghosting Companies House
Not filing your accounts or returns is a no-no. It signals to regulators that something is being hidden, and they tend to investigate accordingly.

6. Dodging Tax
Not filing tax returns or fairly paying tax? HMRC will notice. So will the Insolvency Service. Enough said.

7. Going Off the Grid Post-Insolvency
Once your company enters a formal insolvency process, failing to cooperate with the appointed insolvency practitioner won’t go down well.

8. Peddling Tax Avoidance Schemes
Promoting dodgy tax avoidance schemes is a good way to go from “director” to “defendant”.

How Long Could You Be Barred?

Depending on the severity of the offence, disqualification spans:

  • 2–5 years for relatively serious offences.
  • 6–10 years for more significant misconduct.
  • 11–15 years for truly egregious cases.

In some cases, you can reduce this period with a voluntary undertaking, but be aware- accepting one could be interpreted as an admission of liability, especially if there’s a whiff of criminal conduct involved.

The Cost of Being Unfit

Beyond the obvious reputational damage and business disruption, a disqualified director can face compensation orders, be named and shamed online, and be banned from any business activities involving company formation or management. Further, well drafted Directors’ Service Agreements will contain a clause which states that disqualification as a director can result in the termination of employment, without notice. Therefore, not only may you face hefty fines, your income may also cease. 

So, How Can You Be a Good Director?

Here’s the good news: avoiding disqualification is relatively straightforward if you follow the rules

  • Stay transparent, and don’t treat your company as your personal piggy bank.
  • Understand and uphold your fiduciary and statutory duties.
  • Keep good financial records.
  • Act responsibly if your company is in financial difficulty.
  • Ask for professional advice early.

Think of your directorship like driving a high-performance vehicle. You don’t need to know every engine part but you do need to keep it roadworthy, fuelled, and headed in the right direction.

Final Thoughts

Want to protect your business and stay on the right side of the law? Then steer clear of the disqualification danger zones and keep your entrepreneurial journey firmly on the road.

Being a director isn’t about dodging disqualification, it’s about earning the trust to run a company and growing something that lasts. If you’re unsure about your responsibilities, there’s no shame in getting professional advice. There is shame in pretending you know best while heading for a 15-year ban. Contact Lefteris Kallou to gain clearer understanding of your fiduciary duties.

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens

 

Burberry, Budgets & Booms: Unpacking the Real UK Economic Story

Posted on: June 27th, 2025 by Alanah Lenten

Let’s be honest, not every headline feels relevant when you’re running a business. But behind the buzzwords and big numbers are signals that matter for your margins, your teams and your future plans. We’ve dissected some of the headlines to help you understand what’s going on and how to respond with confidence.  

What’s The Scoop? 

Retail rebounds (sort of) 

The UK retail sector has seen a 7% year-on-year increase in total retail sales in April, well above the 12-month average growth of 1.4%. Warmer weather, Easter spending, and a recent 0.25% interest rate cut by the Bank of England. This sounds positive, right? However, rising employer taxes and national insurance contributions which came out of the Autumn 2024 budget could weigh on retail profits despite higher revenues.  

Luxury market hit hard

Burberry, the UK’s flagship luxury brand, has announced it’s cutting 1,700 jobs globally following a £66m pre-tax loss. Despite the prestige, even heritage brands aren’t immune to recession fears and the knock-on effects of slowing global demand. If a brand like Burberry is recalibrating, smaller high-end brands may need to follow suit – quickly and strategically.  

UK leads the G7 but for how long?  

The UK is currently the fastest-growing economy in the G7, with 0.7% GDP growth in Q1 2025, surpassing expectations. This growth has been driven by strong performance in services, retail, and advertising (such as those on the FEBE Growth 100 list), supported by four interest rate cuts since last July. Again, this sounds positive. However, economists warn that this surge may not last and upcoming tax hikes and international trade uncertainties  (ahem, tariffs!) could undermine progress. 

What Should You Be Doing to React? 

Retail:  

  • Capitalise on the retail sector’s momentum and consumer confidence whilst it lasts by aligning product offerings with seasonal demand and spending habits. 
  • Budget carefully and price strategically. Factor in rising employer taxes and national insurance contributions that could erode profit margins even as revenue grows.  
    Questions on  tax planning and tax-friendly business structures? Get in touch with our Tax specialist, Leigh Sayliss.  

Luxury Market:  

  • Don’t wait for downturn to hit. Global economic challenges are on the horizon and changes must be made now to react to this in order to weather the storm for businesses in luxury and high-end retail – changes can feel brutal but essential.
    Our
    Employment team can help navigate tough decisions with clarity. 
  • Take local legal advice if you have plans to open an international branch or enter a partnership with someone out of the UK.
    Contact our Head of International, who will know the right people for your needs.  

UK Economy in G7:  

  • Take stock: What’s working? What’s not? What new opportunities are there for you and your business whilst also planning for incoming tax changes and international trade uncertainties? 
  • Stay informed about upcoming tax changes and trade agreements that could impact business operations. New markets may be opening  but so are new risks. We’re here to help you balance ambition with foresight. 
  • By staying agile and informed, businesses can position themselves to thrive in a rapidly evolving economic landscape.
    If you’re in retail, luxury, or impacted by the broader economy and want to explore how these changes affect you, please reach out to Charlotte Hamilton.  

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens