LONDON, February 9, 2026: Government apprenticeship reforms could provide a breakthrough in hiring young people or fall victim to bureaucracy. New research from Employment Hero, the global leader in HR, recruitment and payroll software, shows that 73% of SME leaders are ready to take advantage of new support announced in last year’s Autumn Budget. The same data also reveals a warning sign: 43% say navigating the apprenticeship system is too complex, which threatens to deter them from hiring.

With 872,000 young people currently not in employment, education or training (NEET) – the highest level in over a decade – apprenticeships represent a proven solution with 78% of employers seeing an increase in productivity through apprenticeships. However, for the UK’s 5.7 million SMEs, the message is clear: financial support alone will not be enough to drive adoption if administrative barriers persist.

A change in perception

The survey also highlights that perceptions of entry-level career paths have changed, with 78% of leaders having a positive view of apprenticeships. The data suggests that a ‘mixed’ talent model is emerging: 46% of SMEs place the same value on apprenticeships and qualifications, while 37% now place more importance on the career path, leaving only a small minority (11%) who view them as less valuable.

“73% of SMEs want to take up the Government’s apprenticeship initiative. This is great news and highlights that apprenticeship reform has the potential to help solve the youth employment challenge that currently exists in the UK economy.” Kevin Fitzgerald, UK managing director of Employment Hero, said.

“There is clearly a desire on the part of SMEs to give apprentices a key role in the development of their business. This must be accompanied by the government to improve access and remove unnecessary administrative formalities which could prevent SMEs from benefiting from the productivity gains offered by the apprenticeship programme.”

LONDON, APRIL 6, 2025: Looming changes to employers’ National Insurance Contributions (NICs) will hit mid-sized businesses hard, with businesses employing 20 or more people facing annual costs of £8,472, according to new analysis from Employment Hero.

The changes, which come into effect on Sunday April 6, were announced in October’s budget and have sparked concern among the business community.

Analysis by Employment Hero found that while smaller employers may benefit from the extension of Employment Allowance to £10,500, businesses with more than 8-10 employees will face significant additional costs, particularly in higher wage areas like London.

This follows employment trends identified in Employment Hero’s latest SmartMatch jobs report, which uses real-time data from 105,000 employees across UK SMEs. The report showed that employment has contracted by an average of 0.3% each month since the NIC hike was announced in October, including a 0.4% decline in February alone.

Kevin Fitzgerald, UK Managing Director of Employment Hero, commented:

“These NIC changes create a significant burden on growing businesses at exactly the wrong time. Our data clearly shows that employers have been preparing for these cost increases since the announcement by slowing hiring, particularly among younger workers who saw employment fall 1.8% in February alone.”

“While smaller businesses may benefit from the Employment Allowance extension, the cost rises quickly once you exceed the number of employees from 8 to 10. A medium-sized business with 20 or more employees will face more than £8,400 in additional annual costs – money that could otherwise be invested in growth, innovation or higher wages. Larger businesses are looking at almost £18,000 on average.”

“Regional differences are also stark: small businesses in London face costs more quickly due to higher average wages. You shouldn’t be punished for wanting to pay your staff enough to survive in an incredibly expensive city. Elsewhere, large businesses in the Midlands have the highest average costs, at almost £30,000.”

Accounting is something that each small business must approach. If you are not a payroll professional, it may seem quite intimidating.
The good news is that you don’t have to do it alone.
We are here to explain what accounting is and how to resolve it successfully – you focus on more exciting commercial functions, as to engage with customers and examine growth opportunities
That you decide to outsourcing the work Or manage it yourself, it is important that HR professionals and business owners include the basics.

What is accounting?

In a word, the accounting refers to the recording and classification of all financial transactions within your company. This implies precisely documenting what you spend and won and relate regularly to this activity to see how the company takes place. An accountant is a person responsible for managing this process.
Without up to date accounts, it can be difficult to see if your business is profitable and make it more difficult to comply with taxes and other regulations. Keeping an attentive eye on your figures can help you identify all the financial challenges that can hinder your progress.
Books holding also offers the possibility of seeing areas of your business that could develop and develop – opportunities that may not be obvious without clear financial relations.

Books Tent VS Accounting: What is the difference?

If you are already notified with some basic accounting terms, you may wonder how the work of an accountant differs from that of an accountant. Some people can use the terms interchangeably, but while the two roles often go hand in hand, they each have their distinct functions.
Books holding the recording and classification of financial transactions within a company, while accounting focuses on the revision, analysis and interpretation of the data provided by the accounting.
Here are the functions at a glance:

An accountant	An accountant
Registers financial transactions	Examine the financial statements and account sales
Generates monthly financial statements	Prepare the financial statements
Treats pay and payroll deductions	Financial analysis and planning
Creates invoices and perceives payments	Annual income tax declarations
Maintains the great general book (GL)	Provides financial forecasts

You want the TL; Dr of accountants vs accounts?

The accountants have a transactional role which is mainly administrative, while the role of an accountant is considered to be more analytical and subjective, providing information based on accounting data.

How do accountants work together?

Although accounting and accounting are two separate roles, there is a crossing.
The accountants generally manage the daily finances of a company, while the accountants offer a broader perspective on financial health and the trajectory. This large -scale vision is vital to understand the performance and financial health of your business.
In some companies, an accountant can share certain responsibilities, such as payroll or tax reports. In many small businesses, a business owner or a human resources professional can manage basic accounting tasks, such as pay and monthly reports – while hiring an accountant to perform more complex tax reports and compliance.

Why do small businesses need accounting?

For very small business, accounting is essential for long -term success. Having a precise overview of your financial ins and outs helps you make more informed decisions.

Informed decision -making

Are you looking to buy this new range of products or a new piece of equipment for your business? How do you know if you can allow yourself or if it will increase the benefits? The accounting gives you the financial data necessary to make these decisions with confidence.

Business growth

As a business owner, you are still considering growth opportunities. Having the right financial information allows you to transform these plans into reality.

Tax compliance

Taxes are a reality – and an inevitable part of the management of a business. The declaration with precision of your finances and the payment of the right tax amount are vital. No one wants to be struck by an unexpected tax invoice due to inaccurate accounts.

Examples of accounting for a small business

Financial files (alias “Books”)

• Checkout
• Purchases
• Sales

Monitoring and report

• Supplier invoices
• Customer / customer invoices
• Bank readings
• Monthly reports
• Purchases
• Payroll including payroll taxes
• Income declarations
• Reports for accounting analysis
  

Outsourcing your pay with a job hero

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The hero of employment is the first in the world Employment operating system This helps launch businesses on the path of success by feeding more productivity every day.
We offer everything your business needs – research and talent hiring using Smartmatch To transparently integrate new hires, the automation of the complex payroll and stimulates the commitment and morale of employees, all supported by expert support based in the United Kingdom.
By supporting more than 25,000 British companies, why not see how we can overeat your business? Reserve a demo Today to find out more.
A system. All the job.

The Government is introducing its new Employment Rights Bill to Parliament today, which will implement the plans it outlined in its ‘Make Work Pay’ pre-election platform.

The Employment Rights Bill will still be subject to parliamentary approval. It is therefore not yet clear when the provisions will come into force and we will provide further guidance on exactly how the changes will apply over the coming days and weeks.

Perhaps the most important changes for SMEs are:

• A ban on zero-hours contracts and “firing and rehiring” practices
• Introduce unfair dismissal rights from the first day of employment
• Make flexible working the default position for all employees
• Remove a lower minimum wage for young workers
• Make statutory sick pay available from the first day of absence

Below we present more details on these changes and other measures affecting SMEs:

Ban certain zero-hours contracts

Workers on zero-hours contracts will now be entitled to a guaranteed number of working hours if they work normal hours over a defined period, although they will be able to choose to remain on zero-hours contracts if they wish. . This new right may prove difficult in sectors where employers need to hire workers on a flexible basis, such as hospitality and retail.

A ban on “firing and rehiring” practices

Employers will not be able to fire an employee and rehire them on less favorable terms. Such practices are typically only used by employers as a last resort when there is an urgent need to cut costs to keep their business afloat and will therefore reduce the options available to businesses when the going gets tough.

Make unfair dismissal from day one correct

Currently, employees can only bring a claim for unfair dismissal after two years of employment (subject to very limited exceptions), giving employers a reasonable amount of time to decide whether a new hire is a good fit for the organization and, if not, to let them go without fear of reprisal. Making unfair dismissal possible from day one will mean that employers will have to follow much more onerous procedures before dismissing an employee in the first days of their employment, although the Government is still consulting on the introduction of a period of dismissal. It would be relatively simple to let unfit employees go if they do not perform well during this (limited) period.

Make flexible working the default position

While currently an employee must make a request for flexible working which an employer can only refuse on reasonable grounds, the new legislation will make flexible working a default right, unless an employer can demonstrate that this is not feasible in the workplace. While this means employers can avoid measures such as flexible hours and remote working where this is not possible in their business, the onus will now fall on businesses to justify their stance.

Have the same minimum wage for all workers

Currently, it is possible to pay young workers a lower wage than adults, which encourages many employers to hire young workers and give them a first chance. In the future, employers will need to prepare for all staff to be entitled to the same minimum wage, even those who are not adults, and that this amount is likely to increase to take into account the cost of living.

Increasing the availability of statutory sick pay

Currently, employees must earn a minimum amount before being eligible for statutory sick pay and the entitlement only arises when an employee reaches their fourth day of absence. Reducing the salary cap and removing the waiting period will mean that employers will have to budget for increased salary costs when employees are absent.

Give employees the right to bereavement leave, paternity leave and parental leave from the first day of employment

Employers will need to prepare for the new rules around taking these types of leave and be prepared for the fact that no minimum period of service is required before employees can access the leave.

Strengthening protections against dismissal for pregnant women

While no one would object to pregnant women and those returning from maternity leave not being unfairly discriminated against, sometimes downsizing is necessary, particularly when a business is going through tough times. The new measures risk making this process more expensive when it comes to pregnant employees or those who have just taken maternity leave.

Creation of a new fair labor agency to uphold employee rights

This means that employers will need to exercise caution more than ever to ensure they comply with all their obligations under employment law. At Employment Hero, we are committed to supporting SMEs on this journey every step of the way.

While the above measures undoubtedly represent the biggest change in employment law in decades, the government plans to go even further and is also today publishing a Next Steps document which sets out its plans for the reforms future.

Subject to consultation, this includes:

• A right to stop, preventing employees from being contacted outside of opening hours, except in exceptional circumstances
• Make it mandatory for large employers to declare their ethnicity and disability pay gap
• End the current two-tier system of “workers” and “employees” and introduce a single category
• Review current entitlements to parental leave and carers’ leave

Need additional help?

We get it, keeping up to date with labor law is difficult and takes time. So if you need further help understanding your current or future employment law obligations, our human resources advisory service is here to help. Our HR Advisory service gives you unlimited access to a team of HR experts available to guide you through the maze of rules and regulations.

Let Employment Hero take the anxiety out of staying up to date with the law, so you can focus on what really matters: your people. To find out more, speak to a member of our team today.