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What is a P60? | Employer Responsibilities Explained


A P60 is an essential part of managing tax and payroll for any employer. It’s also a vital record for your employees. It provides them with important information about their tax and other salary deductions, and marks the end of each financial year. But what is a P60 and what do employers need to know about them? Let’s take a look at this key piece of documentation.  

What is a P60? 

A P60 shows an employee the tax they’ve paid over the last financial year. It proves exactly how much income tax they’ve paid, as well as National Insurance contributions (NIC) and other information like student loans or maternity pay.  

This makes the P60 an essential record, showing vital financial information that can be needed for all sorts of purposes, such as applying for a loan. 

Employers must provide P60s to everyone employed by them each 5th April, even if that means they’ve only been employed for a few weeks or even days. Following the end of the financial year, the P60 must be issued by 31st May at the latest. 

A P60 is only issued to those employed by a company or organisation, meaning self-employed people don’t deal with P60s. 

What are the uses of a P60?

A P60 provides employees with an overview of their salary and annual tax contributions, important for a host of different uses. If an employee thinks they might have paid too much tax in the previous financial year, they can use their P60 to check. Their P60 provides the evidence for HMRC should they need to claim back overpaid tax. 

A P60 also provides proof of income for employees looking to apply for a mortgage or a loan, making it an important document to keep safe. It’s advised to keep hold of P60s for at least 6 years in case needed by HMRC as part of an investigation. 

P60 responsibilities for employers

It’s up to you to provide all of your employees with a P60 at the end of each tax year. This includes anyone employed by your business when 5th April rolls around, even if they’ve only just joined the organisation. The deadline for providing P60s is the following 31st May, giving you just under 60 days from the end of the financial year to issue them. 

You also need to provide digital copies of each P60 to HMRC. You can give your employees either digital or physical copies of their P60s, but this will usually depend on whether you’re using payroll software or not.

It’s also an employer’s responsibility to correct any errors and provide replacement copies if something isn’t accurate in a P60, both to the employee and to HMRC. 

Including accurate gross pay and tax-deducted figures

The core information included in a P60 is the total gross pay of an employee alongside the amount of tax deducted. This is shown as the total pay and tax for the year, as well as total pay and tax since being employed. 

Ensuring correct PAYE tax codes are displayed

A P60 shows an employee’s tax code, a vital piece of information that tells you how much income tax to deduct from their salary. If there is an error with the tax code, this could mean the amount of tax shown isn’t correct. 

Recording National Insurance contributions and numbers

National Insurance contributions are displayed in a P60, broken down by each level of earnings. This shows the earnings thresholds and how much the employee has paid on their income.   

Providing P60s for employees who left during the tax year

An employee only receives a P60 from you if they’re employed by your business on 5th April – the last day of the tax year. Otherwise, they receive a P45 at the end of their employment, showing how much tax they’ve paid so far during the financial year. 

Using HMRC-approved P60 formats or recognised payroll software

Any good payroll software should be able to handle the production of P60s each year, using the employee data in your systems to make and distribute them digitally. Alternatively, HMRC provides free basic PAYE tools for smaller businesses, able to produce P60s and P45s. 

Including statutory sick pay and maternity pay details

A P60 shows other information besides income tax and NIC, such as earnings from statutory maternity pay or sick pay. This allows the employee to see these figures separately, though they are included as part of the ‘in this employment’ overall figure featured elsewhere in the form.  

Maintaining accurate records for HMRC compliance

As well as providing information for employees, copies of every P60 must be sent to HMRC at the end of the tax year. This can be done automatically with payroll software, providing all relevant RTI when it’s needed.  

Correcting any P60 errors and reissuing if necessary

It’s the employer’s responsibility to correct any errors within a P60 form and to replace it as necessary. Naturally, this will be easier if you issue digital copies rather than paper copies. 

Distributing P60s securely via post or electronic delivery

How you issue your P60s to employees will depend on how you do payroll and other HR admin. Whether you send them digitally via your HR software or manually send paper copies, you’ll need to make sure they’re delivered securely and safely to protect personal information. 

Keeping copies available for potential HMRC inspections

Employers need to keep copies of P60s for 3 years after they’re issued. This is in case HMRC needs to see these records as part of an inspection.

Common mistakes employers make with P60s

The P60 is an important record where accuracy is absolutely paramount. There are many problems that can arise from having incorrect information in a P60, from employees paying the wrong amount of tax to penalties from HMRC, making it an important part of HR compliance.  

Here are a few of the most common mistakes employers make when it comes to P60s: 

Incorrect figures – Including the wrong income amount or the wrong calculation of income tax or NIC can mean the summary is distorted, making the form essentially useless. Integrated payroll software will help keep all the figures accurate so the P60 remains a reliable document. 

Inaccurate personal information – A simple misspelling or misplaced number can throw a spanner into the works. Make sure names, addresses and National Insurance numbers are correctly entered into your systems to avoid problems down the line.

Missed deadlines – P60s need to be issued to employees no later than the 31st May. If this deadline is missed repeatedly, HMRC may start issuing your business with fines. Make sure your end-of-year procedures are set up to meet the required deadlines. 

How can Employment Hero help?

Take the stress out of issuing P60s with Employment Hero’s Payroll Compliance Software. Our automated payroll compliance services give you everything you need to complete these vital tasks with accuracy and efficiency. 

P60s can be automatically created and issued on time to your employees, while all required RTI reports go directly to HMRC when they’re needed. Get in touch today and find out how we can help your business. 



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Virtual Reality in Corporate Employee Training


The way we train people is overdue for a change. Forget the endless slide decks and the e-learning modules everyone clicks through just to tick a box. Many SMEs find that traditional coaching often doesn’t stick; it’s costly, uninspiring and doesn’t prepare your team for the challenges they face every day. 

So it’s time to move away from outdated methods and start building learning experiences that actually make a difference. 

Introducing: Virtual reality in corporate training. 

While this might sound futuristic, it’s not about gaming or sci-fi, it’s about creating immersive, hands-on learning that helps to drive real outcomes. With virtual reality (VR), employees don’t just sit back and watch; they step in and do. It transforms training from a passive exercise into an engaging, practical experience that boosts confidence and retention.

What is virtual reality in corporate training?

Virtual reality in corporate training uses immersive technology to put employees in realistic, simulated environments. Think of it as a flight simulator for your business. It allows your team to practice high-stakes skills, navigate difficult conversations and master complex procedures in a completely safe, controlled setting.

You’re not just watching a video; you are physically and mentally present in the learning scenario. This hands-on approach creates powerful, lasting memories and gives your people the confidence to perform when it matters most. It’s a core component of any modern approach to learning and development.

How VR is revolutionising corporate training

The shift to VR is more than just a technological upgrade for SMEs; it’s a fundamental change in the philosophy of how people learn best. It’s an active, engaging process that builds real-world skills in a way that traditional methods can’t match.

Mastering soft skills with VR

As many small business owners know, you can’t learn leadership from a textbook. The skills that truly matter such as public speaking, conflict resolution, giving difficult feedback and making tough decisions under pressure can only be developed through practice. VR provides the ultimate practice ground.

It allows your employees to face realistic scenarios, like calming an angry customer or delivering a tough performance review, without any real-world consequences. They can rehearse these crucial moments, experiment with different approaches and build the muscle memory and confidence needed to lead effectively. This is a game-changer for improving your business’ soft skills training.

Building true empathy with diversity and inclusion VR training

For too long, diversity and inclusion (D&I) training has been a tick-box exercise that fails to create genuine behavioural change. Reading about unconscious bias is one thing; experiencing it is another entirely.

VR is a powerful tool that SMEs can harness for building true empathy because it allows users to literally walk in someone else’s shoes. Immersive experiences can place a manager in a situation where they are the subject of microaggressions or exclusion. This first-person perspective can build genuine understanding and emotional connection in a way that traditional D&I training simply can’t, driving real change in workplace culture.

Why VR is the future of soft skills training

VR is uniquely powerful for developing soft skills for one critical reason: it provides a psychologically safe space to fail. Difficult conversations are, by their nature, uncomfortable. High-pressure leadership moments are stressful. In the real world, the stakes are high and people are often afraid to make a mistake.

In a VR simulation, employees can fail, reflect and try again without fear of damaging a real relationship or project. They can practice a tough conversation ten times, refining their approach each time, until it becomes second nature. This repetitive, hands-on practice is what turns theoretical knowledge into an ingrained skill.

How effective is virtual reality for training people?

This isn’t just hype; it’s backed by hard data. A landmark PwC study found that 40% of the v-learners saw an improvement in confidence compared to classroom learners and a 35% improvement over e-learners to act on what they learned after training in VR.

The study also found that VR learners were up to four times more focused than their e-learning peers and completed training up to four times faster than in the classroom. 

It’s clear that virtual reality in corporate training isn’t just the current fad in technology, it’s a proven method for delivering more effective training with better results.

VR training vs. the old way: classroom and e-learning

Not all training is created equal. Traditional classroom sessions, e-learning platforms and employee learning programmes have helped businesses educate their teams for years,  but both come with limitations. Today’s workforce needs something more engaging, more consistent and more impactful.

That’s where VR training comes in. It bridges the gap between the human connection of face-to-face learning and the scalability of digital training. 

The table below breaks down how VR stacks up against traditional and online learning — and why it’s fast becoming the go-to choice for modern learning and development.

Training method Challenges Experience Scalability Engagement and retention
Traditional classroom  Expensive to run and maintain; quality varies by instructor. In-person and hands-on, but inconsistent. Limited, hard to scale across teams or locations. Moderate, depends heavily on the trainer and environment.
E-learning Scalable but often uninspired. Passive,  mostly watching and clicking through content. High,  easily distributed across teams. Low,  learners often disengage. and forget material quickly
Virtual reality corporate training  Requires upfront setup but delivers long-term value. Immersive, interactive and realistic “learning by doing”.  Highly scalable and consistent across learners. High, creates memorable confidence-building experiences

Demystifying VR training cost and scalability

Let’s address the elephant in the room: cost. And this is a factor that most SMEs will need to take into consideration. As with everything, there is an upfront investment in headsets and content development. But the real story here is about the cost-effectiveness you can achieve at scale. This is a smart, long-term investment in your people that pays for itself over time.

Achieving cost-effectiveness at scale

Consider the economics. Once you’ve developed a VR training module, you can deploy it to hundreds or thousands of employees across the globe for a fraction of the cost of traditional methods. You eliminate the recurring expenses of venue hire, instructor fees, travel and accommodation.

PwC’s study found that VR training achieved cost parity with classroom learning at 375 learners. When training thousands of employees, VR becomes significantly more cost-effective, delivering a higher ROI and a better-skilled workforce.

The power of emotional connection and focus in VR

A distracted learner is a non-learner. In an office or home environment, an employee taking an e-learning course is bombarded with distractions like, emails, phone notifications and colleagues stopping by. None of this is conducive to effective learning. 

But, with virtual reality in corporate training, there are no distractions. The user is completely immersed in the learning environment. This intense focus creates a deeper emotional connection to the material. Learners feel like they are truly experiencing the situation, not just observing it.

Real-world use cases of VR training in organisations today

This is not a futuristic fantasy; it’s happening right now. Forward-thinking organisations across industries are using virtual reality in corporate training to gain a competitive edge, develop stronger teams and deliver development programmes that truly stick. From customer service to healthcare and workplace safety, VR is transforming how people learn, making teaching more engaging, effective and scalable than ever before.

Use case: transforming customer service training

Imagine stepping into the shoes of a frontline retail or hospitality employee,  not through a roleplay exercise, but through an immersive virtual experience. In VR, staff can practise handling tense customer interactions without the risk of real-world fallout.

A global hotel chain, for example, uses VR to simulate challenging guest scenarios: a double-booked room, an overcharged bill or a guest upset about service quality. Trainees experience these interactions in lifelike detail, learning to read body language, manage emotions and apply de-escalation techniques with confidence.

Because VR allows them to make mistakes safely and repeat the scenario as many times as needed, employees can refine their tone, empathy and problem-solving skills until they feel completely prepared to handle any customer calmly and professionally. The result? Happier guests, reduced staff anxiety and a measurable lift in customer satisfaction scores.

Use case: revolutionising healthcare and safety training

Nowhere is precision and preparedness more critical than in healthcare and workplace safety and VR is saving lives by helping professionals master high-stakes skills before they ever face real danger.

Hospitals are using VR to let surgeons practise complex procedures in a zero-risk environment. They can perform delicate operations virtually, building muscle memory and decision-making confidence that translates directly to better patient outcomes. For nurses and emergency responders, VR scenarios simulate high-pressure situations like cardiac arrests or trauma care, training them to stay calm, act fast and coordinate effectively under pressure.

The same principle applies to safety-critical industries like construction, mining and manufacturing. Workers can learn how to operate heavy machinery, navigate hazardous environments and respond to emergencies,  all in a safe, controlled virtual space. By experiencing the potential consequences of unsafe behaviour without real-world risk, employees develop a stronger safety mindset and are less likely to make costly or dangerous mistakes on the job.

These examples aren’t science fiction, they’re today’s reality. Organisations that embrace VR training aren’t just improving skills; they’re future-proofing their workforce and creating safer, more capable and more confident teams.

How to get started with VR training in your business

You don’t need a massive budget or a team of developers to begin. The key is to start small, prove the value and build from there. We’ve broken down the basics of getting started with virtual reality in corporate training.

1. Identify a high-impact training opportunity

Look for one clear challenge where better training could make a big difference.

  • Is your customer service team facing burnout and high turnover?
  • Are new managers struggling to give effective feedback?
  • Do employees need more hands-on experience to handle complex tasks safely?

Start with a single, measurable problem, one that matters to your people and your business.

2. Partner with a VR experts

You don’t need to build everything yourself. Partner with a specialised virtual reality in corporate training provider who can help design a pilot program that fits your goals, budget and team needs.

3. Define success 

Before you launch, decide how you’ll measure success. Are you aiming to:

  • Boost employee confidence?
  • Reduce safety incidents?
  • Improve sales performance or customer satisfaction?

Clear metrics help you track progress and show the return on investment.

4. Trial, measure and scale

Run your VR training with a small group first. Gather feedback, track results and use that data to build a strong business case for a wider rollout.

5. Use the right tools to plan

Set your VR training up for success by using tools that give you a clear picture of your team’s needs. Start by identifying the skills gaps and learning priorities that will make the biggest impact on performance. 

The key considerations before you invest

Before you jump in, ask yourself these critical questions to position your VR initiative for success, not for failure.

  • What specific problem are we trying to solve? Don’t adopt VR for its own sake. Tie it to a clear business objective.
  • How will we measure success? Define your KPIs from the start. What does a successful outcome look like?
  • Do we have leadership buy-in? You need a champion in the leadership team who understands and supports the strategic value of this investment.
  • Who is our target audience? Consider the technical comfort level of your employees and plan for user-friendly implementation and support.
  • How will this integrate with our existing learning ecosystem? Think about how VR training will complement your current employee development and fit within your overall strategy. 

 The future of learning is already here

Virtual reality in corporate training is changing how businesses approach learning and development.  By creating immersive, hands-on learning experiences, VR empowers employees to practise, fail, reflect and succeed in ways traditional methods can’t match. It builds confidence, strengthens skills and creates lasting behavioural change that drives real business results.

For forward-thinking organisations, this isn’t a “nice to have”,  it’s the next step in creating a learning culture that’s scalable, engaging and human at its core. 

At Employment Hero, we believe in helping businesses unlock the full potential of their people. By combining innovative technology with human insight, you can transform how your team learns. Our Employment OS (Operating System) empowers HR professionals and business leaders to spend less time on admin tasks and more time on the fun stuff (like learning and development). 

Find and hire top talent, onboard, manage complex payroll, support compliance and more. One system, everything employment.



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Best Performance Management Software in the UK


Modern performance management is evolving faster than ever. Before you mourn the loss of traditional performance reviews, think about how the once a year reviews, filled with formalities and box-ticking activities actually impacted your team. Not only do they no longer reflect how modern businesses work and how employees grow, but they also fail to drive real growth and progression. 

It’s time for a revolution in how we measure and inspire performance. The best performance management software moves you from painful annual reviews to a culture of continuous feedback, goal alignment and genuine development. 

We’ll cut through the noise to take a comprehensive look at which is the best performance management software. 

Why employee performance software is important

Employee reviews and development are no longer about a yearly check-in. With hybrid, remote and flexible working, businesses now need to find ways to keep their team connected, engaged and aligned with business goals… regardless of where they’re working from. 

The good news is that there are platforms that can help businesses do this. The best performance management software provides a central hub to track objectives, facilitate real-time feedback and understand employee development needs.

It gives you the insights to not just manage, but to coach and inspire your people. This is fundamental to boosting productivity, improving retention and building a culture where everyone can thrive. It starts with a clear understanding of how to measure employee performance in a modern way.

What is performance management software?

The best performance management software is a tool that helps you create a continuous cycle of development. It goes far beyond simple review forms. 

Modern platforms are designed to manage goals, facilitate ongoing feedback from peers and managers, handle recognition and provide powerful analytics. It digitises and automates the entire process, from setting objectives to tracking progress and rewarding achievements, freeing up managers to focus on high-impact coaching conversations.

The best performance management software

1. Employment Hero

Employment Hero’s Employment OS (operating system) takes all of the traditional isolated elements of employment and puts them into one place. This means you can not only conduct employee reviews, but also find and hire top talent, onboard, manage complex payroll, support compliance and more. 

It is designed to be an all-in-one solution for managing the entire employee lifecycle, making it a powerhouse for businesses that want to eliminate disconnected systems.

What sets Employment Hero apart

The key differentiator for Employment Hero is its unified approach. Performance management isn’t a standalone module; it’s woven into the fabric of your daily HR operations. Features like real-time feedback, goal tracking (OKRs) and recognition are linked directly to employee engagement analytics. This gives you a holistic view of your workforce, connecting performance data with sentiment and wellbeing insights. Its powerful automation and seamless integrations streamline everything from reviews to rolling out a performance improvement plan.

2. 15Five

15Five is built around the concept of frequent, lightweight check-ins. Its name comes from the idea that employees should spend 15 minutes a week writing a report that takes their manager five minutes to read. The platform is heavily focused on fostering positive manager-employee relationships through continuous communication.

What sets 15Five apart

15Five’s strength lies in its emphasis on positive psychology and manager training. The software includes features like a “High Five” peer recognition tool and strengths-based assessments. It’s not just a system for tracking performance; it’s a platform designed to facilitate better conversations and build a more engaged, positive workplace culture.

3. Lattice

Lattice is a comprehensive people platform that combines performance management with employee engagement and development tools. It is known for its clean user interface and its ability to connect performance data directly to compensation decisions.

What sets Lattice apart

Lattice excels at linking performance, engagement and growth. It allows you to run review cycles, engagement surveys and set up career development tracks all within one system. Its standout feature is the ability to integrate performance review data with compensation cycles, creating a transparent and data-driven process for pay decisions.

Features of top performance management software

When evaluating platforms, look for these game-changing features.

Continuous feedback mechanism

This allows employees and managers to give and receive feedback in the moment, rather than waiting months for a formal review. It makes recognition timely and constructive criticism actionable.

360-degree feedback

This feature gathers anonymous feedback from an employee’s peers, direct reports and managers. It provides a well-rounded view of an individual’s strengths and development areas, which is a core part of any modern performance review.

People analytics

Powerful reporting dashboards give you insight into performance trends, goal attainment and engagement levels across the business. This data is critical for making informed talent decisions.

Employee reward and recognition

Integrated tools for peer-to-peer recognition, like shouting out great work, help build a positive culture and make employees feel valued.

Setting SMART goals

The best software makes it easy to set, track and align individual, team and company goals. This ensures everyone is pulling in the same direction. Look for support for frameworks like Objectives and Key Results (OKRs).

Learning management system

Some platforms integrate learning and development modules, allowing you to assign training based on feedback and identified skill gaps.

Customisation, security and integration

A top platform should be customisable to your review process, offer robust data security and integrate with your other HR systems. You can find many of these features in our complete performance review bundle.

What is continuous performance management software?

Continuous performance management (CPM) is a modern approach that replaces the annual review with ongoing dialogue. CPM software facilitates this by enabling real-time feedback, regular check-ins and agile goal setting. It’s a dynamic process designed for today’s fast-paced work environment, especially for hybrid teams who need constant connection and alignment.

Core features of CPM software

Core features include one-on-one meeting agendas, goal  tracking and instant feedback channels. These tools are built for agility, helping teams adapt to changing priorities and providing managers with a constant pulse on team performance and morale. Using a mid-year performance check-in template is a great way to start adopting this mindset, even before you have the software.

Elevate your performance management with Employment Hero

The way we measure, manage and inspire performance has changed and so have the tools that make it possible. Annual reviews and outdated systems no longer cut it in a world where teams need to stay connected, motivated and aligned in real time. To truly unlock your people’s potential, you need the best performance management software on your side. Which is where Employment Hero comes in. 

But our Employment OS is more than just the best performance management software, it’s an all-in-one platform that supports the entire employee lifecycle. Our platform empowers your business to grow smarter. From goal tracking and real-time feedback to hiring top talent, onboarding new employees, managing complex payroll, supporting compliance and more. 

One system, everything employment. 



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MTD for Income Tax: 7 strange yet true facts you need to know


Making Tax Digital for Income Tax is the future of accounting for millions of sole traders and private landlords.

It begins in April 2026 and rolls out to more taxpayers as of April 2027 and April 2028.

We’ve looked in detail about MTD here on Sage Advice, but this time we’ve taken an oblique approach: We’ve found things that might surprise you about this latest incarnation of HMRC’s tax digitalisation.

Here’s what we discuss:

A quick introduction to MTD for Income Tax

MTD requires businesses that fall within its scope to keep digital records and submit updates using MTD-ready accounting software.

You’ll need to:

  • Keep digital records of your income and expenses using MTD-compatible software (usually cloud-based).
  • Submit quarterly updates to HMRC using the software, so they can estimate your tax liability throughout the year. (Although you can submit them more frequently.)
  • File a digital tax return by 31 January after the tax year ends using the software, including all income and expenses – and any other relevant sources, like savings interest. You can also make any necessary adjustments at this time.

Here’s a short video with some of the latest details about MTD, featuring HMRC’s Director of MTD, Craig Ogilvie, in Sage’s exclusive interview at Accountex North:

1. You can’t sign-up for MTD if you’re new to operating a business

If you’re just starting out as a sole trader or landlord, you can’t sign-up to MTD immediately. This is true even if you’re sure your gross income will be above the threshold. In other words, you won’t face any penalties, so don’t worry.

Instead, you must sign-up to and use Self Assessment in the standard way – applying for a unique tax payer (UTR) reference, then submitting a Self Assessment tax return by 31 January following the end of the tax year the previous April (or a paper-based return by the end of October).

However, if it’s clear following your first Self Assessment tax return that your income exceeds the MTD qualifying income threshold, then HMRC will write to you telling you to start using MTD from the next tax year onwards.

This effectively means that those new to being a sole trader or landlord will always complete at least two years of Self Assessment before moving to MTD for Income Tax.

(There is a caveat: It is possible to sign-up to MTD for Income Tax voluntarily after you sign-up to Self Assessment. In that case, you’ll be scheduled to start using MTD for Income Tax as of the following tax year, meaning you’ll still have to complete one year of Self Assessment.)

Even though you must use Self Assessment before switching to MTD, there remains an excellent opportunity to embrace modern accounting technology and digitalise your accounting. MTD-ready accounting software like Sage Accounting is also fully compatible with Self Assessment.

If you develop the right processes for income and expenses using accounting software, then switching to MTD when required will be almost seamless.

2. Your accountant can do nearly all of MTD for you

Although the goal of Making Tax Digital is to introduce digitalisation to your accounting, you can still ask your bookkeeper or accountant to do most of the work.

You just need to ensure they have all the accounting data they need ahead of the quarterly deadlines, so they can digitalise it in time. In other words, while you may currently contact them only once a year around January, with MTD you’ll now need to make this same contact every three months, and also in January for that digital tax return.

The contact every three months could be simply supplying the bank statements of your business accounts, although you should speak to your bookkeeper or accountant to see how they want to handle it.

The bookkeeper or accountant can create and submit your quarterly updates for you. They can create your digital tax return, too, although you’ll still need to review and digitally sign it. The accountant or bookkeeper can do this via email, just as they do already with Self Assessment.

They can even register you for MTD for Income Tax.

None of this is to say the above is a good way of working. You’ll be blind to your business finances, and cash flow, for most of the time. And leaving digitalisation of the data to the last-minute risks penalties from HMRC. It’s a perfect way to create situations where you accidentally lose that vital data, too.

Why not take the opportunity to modernise your accounting and processes, so you get the benefit of cloud accounting software, like automated reminders, AI assistants, and more? You can still work with your accountant or bookkeeper by connecting your accounting system to theirs.

But it is entirely possible for them to nearly entirely take care of MTD on your behalf. Speak to your bookkeeper or accountant to learn how.

3. It’s potentially illegal to copy and paste accounting data

This really might seem a strange one but it’s true: You’re not allowed to manually cut/copy the key income and expenditure accounting data for MTD. No Ctrl+C. No Ctrl+V.

For example, if you keep track of this data in a spreadsheet then it’s illegal to copy and paste it into your accounting software. If HMRC catches you doing so, you could be penalised.

Similarly, you can’t write it down and then key it in manually.

This is because of the digital record and digital linking rules, that try to ensure the accounting data is not only digital but that it’s transferred in an automated way that’s fundamental to digital accounting.

For example, you could configure your spreadsheet to somehow transfer the data automatically into your accounting software. However, this is technically difficult to achieve.

You can copy and paste other accounting data. Just not the records directly relating to your income and expenditure for your business(es) that are required for the quarterly updates or the digital tax return.

This is why it simply makes sense to keep everything within your accounting software. Ensure you get data into it as soon as possible, such that contained in receipts or bills, or generate the data there by doing things like issuing invoices using it.

This way the data is always where you need it. You haven’t got to cut/copy and paste anything, so you’re automatically in compliance with the law.

4. MTD for Income Tax is not linked to MTD for VAT

If you’re already signed up to MTD for VAT, then you’ve gained some useful experience in Making Tax Digital’s requirements. Many are similar in MTD for Income Tax.

However, MTD for VAT is unconnected to MTD for Income Tax. They’re two separate and distinct systems run independently by HMRC.

For example, you’ll still need to sign-up to MTD for Income Tax separately, and activate it in your MTD-ready software – even if you’ve already signed-up to MTD for VAT and switched on that functionality in your accounting app.

You don’t need to use the same software for both MTD for VAT and MTD for Income Tax – although for many sole traders and landlords, this will make sense.

What’s more, although the VAT and Income Tax penalty systems work in an identical way, they’re entirely separate.

If you find yourself with penalty points for missed VAT return submission, that doesn’t affect your tally of points for MTD for Income Tax. And vice versa.

There is one exception to all of the above, which is that those who were digitally excluded from MTD for VAT are also digitally excluded from MTD for Income Tax – provided your situation hasn’t changed. Speak to HMRC to confirm.

5. MTD doesn’t replace Self Assessment for everybody

MTD for Income Tax only potentially applies to sole traders and landlords who currently use Self Assessment.

Nobody else.

However, there are many other reasons outside of running a business that people sign-up to Self Assessment. None of these people need worry about MTD for Income Tax right now.

For example, some people with pension income above the personal allowance need to use Self Assessment to report their income. These people do not need to use MTD for Income Tax.

Similarly, the following types of people who have to use Self Assessment do not need to switch to MTD for Income Tax:

  • Those who pay the High Income Child Benefit Charge (if you don’t pay it through payroll).
  • You’re a partner in a business unincorporated partnership (although the government has said it’s likely partners will be included at a future date).
  • You received over £10,000 from savings, investments, or share dividends.

6. Any sole trader or landlord can sign-up to MTD – even if your income is below the threshold

MTD for Income Tax starts in April 2026 for those whose qualifying income is over £50,000. This threshold then falls to £30,000 as of April 2027, and then £20,000 as of April 2028.

However, if you earn less than this, you can still voluntarily sign-up for MTD for Income Tax provided you’re already a sole trader or landlord using Self Assessment (and provided you meet the other various criteria).

Signing-up voluntarily makes a lot of sense because you’ll gain the benefits of MTD for Income Tax, such as HMRC estimating your tax and National Insurance bill with every quarterly update. This is great for understanding your cash flow and it avoids the guessing game where you set aside around a third of your income for the tax bill.

Note that, if you voluntarily sign-up to MTD, you are committing to stay within MTD for the full tax year. In other words, you can’t join for a few months to see if you like it, for example, before reverting to Self Assessment.

7. You haven’t got to use the same software for everything in MTD for Income Tax

Although it makes sense to use the same cloud accounting software for all aspects of your accounting, this isn’t strictly required under the MTD rules.

You could use a particular app to track your expenses, for example, and another app for your income.

A good example of this is using data entry automation software like AutoEntry to digitise paper receipts and bills, which will magically and compliantly transfer the extracted data to your accounting software.

Similarly, retailers will use electronic point of sale (EPOS) systems to take payments. Some people who travel for work can use car mileage tracking apps.

However, there must be a way to automatically move the relevant income and expenses accounting data records into your main accounting software through which you make the quarterly updates and submit the digital tax return. As mentioned, you can’t manually copy and paste data or write it down and key it in manually because of the digital linking requirements.

In most cases, this is taken care of by the software automatically – but it’s a good idea to check before buying or subscribing to software.

Final thoughts

MTD for Income Tax is transformational for businesses. It’s the chance of a lifetime to update processes and introduce digital accounting, including automation and artificial intelligence.

There’s little to be gained by sitting on the fence. MTD has the very best intentions, for both your business and your admin.

Your Guide to MTD for Income Tax

Our free e-book is written by experts and is all you need as a sole trader or landlord to understand what MTD means for your business – and how to ensure you’re ready in time.

Download now



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How agentic AI is changing the way your business grows


Watch highlights from Sage Future for Partners 2025 and see how AI is helping businesses move from insight to action. 

AI has reached a turning point. It’s no longer about efficiency but about clarity, confidence, and maximising your competitive edge.

The question shouldn’t be if you’re using AI, but how are you using it to empower your people, sharpen decisions, and turn insight into action.

The pace of change is quick, but the opportunity is practical: to turn insight into action faster, free up the hours that get lost in spreadsheets and reconciliations to focus teams on what truly drives growth. 

For finance leaders, that means shifting from managing transactions to shaping strategy – from chasing data to trusting it. 

Sage Future for Partners 2025 in Barcelona explored how agentic AI – technology that can reason, act, and learn alongside you – is redefining what a high-performance finance function looks like. 

Don’t replace judgment or experience – augment it. That combination of human and machine intelligence is quickly becoming the difference between keeping up and leading. 

Here’s what we cover:

How do you turn your data into decisions?

The new Sage Finance Intelligence Agent marks a defining shift: autonomous insight, delivered in plain language, where finance teams already work.  

No reports. No manual analysis. It analyses data across systems, flags risks and opportunities in real time, and helps finance move from reacting to anticipating – so the function becomes a true strategic driver. 

“Don’t make our AI cute – it has to be real, authentic, and right.”

— Steve Hare, Sage CEO 

What the results look like in practice

From the last 12 months, Sage Ai agents have: 

  • Removed up to 90% of manual data entry 
  • Automated 45m+ invoices  
  • Reduced period close to 2–3 days 
  • Scanned 3.2bn transactions; flagged and fixed 190m errors  
  • 5× ROI on software investments for customers 

Help to build your connected enterprise

  • Alongside Finance Intelligence, three launches will shape how businesses connect strategy, systems, and scale: 
  • Next-generation Sage X3 built for mid-market organisations that need connected, scalable, and secure finance operations. 
  • AI Developer Solutions empowering partners and developers to co-create tailored AI experiences for customers. 
  • The new Sage Partner Portal, which is a single environment to streamline provisioning and support, connecting you to a richer ecosystem of AI-enabled expertise. 

At the centre is the Sage Network – a connected platform linking businesses, partners, and products in one intelligent flow.  

It helps teams collaborate more easily, automate what slows them down, and keep the right data moving securely across e-invoicing, payments, and compliance. 

Trust you can show with responsible AI

Trust is at the absolute core of AI adoption, and that’s why Sage has introduced the Sage Trust Label (starting with Intacct in the UK & US, expanding across EMEA).  

It explains how AI features work and how data is handled – giving boards, auditors, and clients the confidence that innovation is happening hand-in-hand with accountability. 

Practical takeaways for your business

  1. Start with outcomes, not pilots. Pick one finance pain point (close, AP, anomaly detection) and measure cycle time saved, error rate reduced, or cash-flow impact. 
  1. Put AI where decisions happen. Embed agents in the workflows your team uses daily; avoid “side-apps” that create extra clicks. 
  1. Tighten data hygiene. AI agents amplify whatever they ingest – clean vendor data, chart of accounts, and approvals first. 
  1. Write the guardrails. Define what the agent can action vs escalate; document audit trails and approvals. 
  1. Explain the ‘why’. Use evidence like the Trust Label and a simple comms pack to bring your leadership and auditors with you. 

Questions to take back to your next team meeting

  • As agentic AI continues to evolve, how can you harness both technology and human insight to shape the future of your business? 
  • Where would a two-to-three-day close, fewer manual touches, and clearer risk signals change how you plan and invest next quarter? 
  • How can you free finance from reporting the past, so it becomes the driver of your next strategic move? 
  • What decisions could your team make if data spoke the same language across your systems and partners? 
  • And, as trust becomes the currency of AI adoption, what steps can you take today to make transparency part of your finance culture? 

AI is not replacing human intelligence, it’s amplifying it. Those businesses that combine human judgment with the powers of agentic AI are already moving faster, making smarter decisions, and finding new ways to grow over their competition. The next advantage belongs to those who turn their potential into action. 

Sage Copilot. Your dedicated AI-powered productivity assistant

Step into a new business era with Sage Copilot, built on over 40 years of experience supporting British businesses like yours. Get work done faster with real insights, fewer errors and less admin.

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Solve Applicant Overload & Filter CVs Faster with AI


Recruiting top talent is essential for growth, but the process isn’t flawless for every type of role. For some, you might post a job and get buried under a mountain of applications, most from candidates who aren’t the right fit. Hiring managers can spend countless hours sifting through CVs, struggling to keep up with the volume while trying to give every applicant a fair chance. This is applicant overload, and it’s a major drain on time, resources and morale.

The cost of this inefficiency is huge. It slows down hiring, leads to inconsistent screening and creates a poor experience for candidates. Promising talent gets lost in the noise or accepts another offer while you’re still wading through unqualified CVs. It’s time to stop drowning in admin and start building your team with confidence.

Employment Hero is confronting this challenge head-on. We’ve developed a suite of powerful AI-driven tools designed to cut through the chaos, automate the heavy lifting and put you back in control of your hiring process. These features are built to manage applicant overload, so you can focus on connecting with the people who will actually drive your business forward.

Stop screening and start connecting with the Recruitment Agent

First-round interviews are one of the biggest time sinks in recruitment. The repetitive nature of screening calls, many with candidates who are clearly not a match, is a frustrating and inefficient use of your team’s expertise.

Enter the Recruitment Agent, your new AI colleague. This feature automates first-round, structured video interviews, completely transforming your initial screening process. Instead of manually scheduling and conducting dozens of calls, you can now automate the entire workflow. 

Early results from businesses using the Recruitment Agent show a massive 46% reduction in candidate screening time.

Here’s how it works:

  • AI-generated questions: The system analyses your job description and creates 4-6 structured interview questions covering motivational, behavioural and role-specific criteria.
  • You’re in control: You can review, edit and approve the questions and scoring rubrics before anything is sent to candidates. This ensures the screening aligns perfectly with your standards.
  • Flexible for candidates: Applicants receive a link to a guided video interview and have seven days to record their responses. This removes scheduling headaches and allows them to perform at their best.
  • AI-assisted scorecards: The Recruitment Agent evaluates responses against your criteria and delivers a scored summary. You can instantly see top performers, and review responses in your own time, enabling your team to make faster, data-driven decisions.

By automating this crucial first step, the Recruitment Agent eliminates the administrative burden of screening and delivers a pre-vetted shortlist of candidates ready for meaningful conversation.

Pinpoint top talent instantly with SmartMatch applicant ranking

Even before the interview stage, identifying the most promising candidates from a large applicant pool is a significant challenge. Reading every single resume is simply not scalable for a growing business.

Our SmartMatch technology acts as your intelligent shortlisting assistant. It automatically analyses resumes and application data the moment they arrive, ranking candidates based on how their skills and experience align with your job requirements. This isn’t just a keyword search; it’s an intelligent analysis that understands context and prioritises your efforts.

Think of it as your personal recruitment scout, working 24/7.

  • Instant prioritisation: See a ranked list of applicants, allowing you to focus your attention on the most qualified individuals first.
  • Data-backed decisions: Move beyond gut feelings and use objective data to guide your screening process from the very beginning.
  • Uncover hidden gems: SmartMatch can identify strong candidates who might have been overlooked in a manual review due to unconventional resume formatting or phrasing.

With SmartMatch, you can engage with the best candidates 33% faster than before. It cuts through the noise of unqualified applications and ensures you don’t miss out on top talent because they were buried at the bottom of the pile.

Streamline your sourcing with jobs board upgrades

The easier you make it for candidates to find and apply for your roles, the better the quality of your applicant pool will be. Our own jobs board, Employment Hero Jobs, has undergone significant upgrades to improve the candidate experience and provide another powerful channel for attracting direct applicants.

A seamless application process is your secret weapon. When candidates who are already interested in your brand can easily discover and apply for roles, you get a higher calibre of applicant who is more engaged from the start. 

Our platform upgrades have already led to a 10% increase in screening speed, simply by making the entire journey smoother for both recruiters and candidates.

It’s time to defeat applicant overload

The traditional approach to recruitment is no longer sustainable. Applicant overload is a real problem that costs businesses time, money, and talent. It’s time for a new strategy, one that leverages technology to amplify human capabilities, not replace them.

Employment Hero’s AI-powered recruitment tools are designed to do just that. The Recruitment Agent, SmartMatch and our jobs board upgrades work together to create an efficient, fair and scalable hiring machine. By automating repetitive tasks and providing data-driven insights, we empower you to hire faster, smarter and with greater confidence.

Stop letting administrative work get in the way of building a winning team. It’s time to reclaim your time and focus on what truly matters: people.

Ready to transform your hiring process? Explore our recruitment tools and discover how you can conquer applicant overload for good.



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Slot yang Paling Gacor Hari Ini Deposit 10 Ribu

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Pastikan kamu hanya bermain di situs resmi dan berlisensi, bukan situs ilegal. Platform legal biasanya punya:

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How does AI help this small business get paid faster?


Adam remembers when Tyne Chease was barely bigger than a household project.

“Tyne Chease was founded by Ami in 2014. I was the second hire, joining in 2017. We worked out of Ami’s parents’ house. Back then, we made Tyne Chease individually. Every single Chease—created one at a time, by hand.”

The scale was small and the work meticulous. Every round was a statement—proof that vegan cheese could be more than oil and starch imitation. Tyne Chease were the first traders in the UK to apply the artisanal craft of cultured cheesemaking to plant-based food—creating something original, flavourful, and satisfying in its own right. 

“People would come up, saying how much they loved the products, how it’s what allowed them to become vegan,” Adam recalls fondly. “They’d thank me—‘I couldn’t live without your Chease,’—I’d never felt like that working before.”

Here’s what we cover:

How missed opportunities shape growth strategy

As demand crept up, so did the ambition. Long nights were spent perfecting endless experiments with fairtrade cashew fermentation, and countless taste tests that blurred the line between science and art. Each batch was a leap of faith—a testament to patience, curiosity, and an unwavering commitment to quality.

But pride in their product didn’t shield them from the realities of running a small UK manufacturing business. Margins were tight. Equipment stretched to its limits. Supermarkets came calling before the team was ready.

The company began to feel the weight of its own limitations. Doors were opening faster than they could step through. What had once been a promising kitchen experiment risked stalling—not from lack of public appetite for the product, but from the challenge of keeping up with it.

“We’ve missed out on opportunities,” Adam says. “Supermarkets asked for volumes we couldn’t deliver. We had to turn them down. That’s something we never want to do again.”

A change in leadership, Victoria’s vision

In 2023, Victoria took over Tyne Chease at a fragile moment. The company was shrinking, and she herself was emerging from a period of personal grief and uncertainty, ready to rebuild.

“I’d had a lot of loss in my life, and had come out of work, but I was really struggling with that. I really wanted to get my teeth into something.”

“We were already massive fans of the product,” she tells us. “We’d have it whenever we could—for Christmas, or a cheeseboard night. It felt special. Then I found out Tyne Chease was up for sale, and it seemed like it was supposed to be—the way everything aligned.”

She invested in a product she trusted, matching her own resilience with the company’s early tenacity and together they carved a new future.

The risky realities of running a business

Shoulder to shoulder, CEO Victoria Inskip and GM Adam Williams lead a small crew. They faced the same pressures every small business recognises, like late nights worrying about cash flow, the pressure of suppliers and payroll, and the endless list of admin-heavy tasks no one trains you for. Sales, operations, logistics, finance, HR—all pressed into just a few hands. Moments of doubt when the weekly numbers looked fragile, and moments of loneliness when decisions felt bigger than the team around them.

When another vegan business disappears, they feel the weight of it—a reminder of how fragile the sector can be. “Every week it feels overwhelming,” Victoria shares. “There’s been loads of vegan businesses that don’t exist anymore. I don’t want that to happen to Tyne Chease.”

Isn’t that the paradox of entrepreneurship? That risk and fear live right beside purpose?

Scaling before you’re ready

In defiant opposition to the idea of giving up, those earlier missed chances with supermarkets became the lessons they followed.

The company took bold steps, moving into a factory bigger than they could fill, overhauling production so they could scale quickly.

Costly and uncomfortable moves, especially for a small business, but they shifted Tyne Chease’s horizon.

Empty space in the factory became room to grow. Processes built for scale became proof they could meet demand the next time it came knocking. What once felt like a ceiling now looked like a runway.

Celebrating success: Award-winning flavours from an ethical UK manufacturer

For their small-yet-mighty team, the reward of these risks has been crafting Chease so delicious that vegans and non-vegans alike could savour and celebrate it.

“My favourite flavour?” Adam grins. “It has to be Marinara. I’m biased, because it’s the one I came up with. It’s a bit of a running joke in the office—we all claim ours is the best—but mine genuinely is one of the better sellers.”

Victoria laughs at that. “Marinara is really, really good—Adam’s recipe. But my nacho Chease sauce? I’ll just scoop it straight from the tub and eat the lot. Nacho is my favourite.”

The awards just keep rolling in. Recently, Tyne Chease’s ‘Flavoured Cheese Selection’ won Silver in the 2025 Free From Food Awards, a notable achievement in one of the industry’s most competitive categories.

Is company culture the secret ingredient of success?

New flavours and new strategies have made a world of difference, but like the Chease, what’s truly kept the business thriving is culture.

“Although I’m the CEO, you’ll usually find me in the kitchen,” Victoria smiles, proudly. “Adam’s the same. We all support each other and try to have fun. I don’t want it to be a place people dread coming into work. Keeping morale high is the most important thing.”

For Tyne Chease, their philosophy of leadership treats culture as thesource of stamina.

Joy at work fuels the risks and recoveries that make it possible to keep creating, scaling, and imagining what comes next.

For Victoria and Adam, that’s getting it onto supermarket shelves, on a mission to prove that the future of food doesn’t just belong to the biggest players—it belongs to those who can combine tradition with both conviction and innovation. A recipe for success.

How AI empowers leaders to do more with less

Though she’s a highly skilled and successful CEO, Victoria admits she’s not much of an accountant. The finance side of business could’ve been the thing that broke her momentum. “I inherited Sage when I took over the company. I’m not any good at accounts. But Sage is really easy to use. I don’t think I would have been able to do it if it had been any other software.”

“If you took Sage away,” Victoria continues, “there’d probably be piles of paper, with me just rocking in a corner in the office. Sage is a part of everyday life at Tyne Chease.”

 “Every morning when I do admin, it’s Sage Copilot,” she says. “It’s like my little personal assistant, telling me what needs addressing, what needs to be prioritised. It even drafts emails and suggests tones—friendly or firm. It’s been really helpful.”

Ask Adam where Sage Copilot makes the biggest difference, and he doesn’t hesitate: “The main time consumer previously was chasing up invoices. Now, I go on at the start of the day and I get a summary of what is overdue, then it will automatically draft emails to chase those up for me, like an assistant.”

Why cash flow matters when you can’t buy in bulk

“Everyone’s just trying to get one thing paid so they can pay another,” Adam explains. Tyne Chease can’t buy in bulk or hold much stock, so every supplier relationship is vital. One missed payment and the knock-on effect ripples through production and sales.

Sage Copilot changes the tempo. “Now that Sage Copilot prompts and automates a lot, we get paid much quicker,” Adam says; “previously, invoices were getting paid up to a week—seven full days—later than they needed to be.” 

For Adam and Victoria it’s a relief. Sage Copilot is a dependable sidekick that lifts the weight of draining tasks, giving them space to focus on the parts of the business that excite and inspire them.

“During a typical week, Sage Copilot now saves about 12 to 14 hours, which, for our team, is a huge amount of time.” Every hour saved is an hour they can put back into projects that clear their path to supermarket shelves.

Lower prices for customers

They’ve already used that time to have their first audit, which Adam tells us was “largely passed due to the time saved,” it’s this kind of milestone that clears the way for bigger opportunities ahead.

“We have a lot of loyal customers who love the products,” Adam says. “But we want to make it more accessible. A lot of people have a limited food budget, and we want them to be able to enjoy the Chease.” For Victoria, affordability ties directly into her vision. “My aim is for people to get it in their weekly shop. We were the first in the UK, but it feels like the newbies have taken over. I want to catch up or overtake them.”

With help from Sage Ai capabilities, Adam recently ran a full cost review. “We brought one range down from £6.20 to £5.49. Another from £7.70 to £6.29. Same product, same amount, just more affordable.”

Sage is the tool that frees their small team to operate at its best—to think bigger, move faster, and make Chease that isn’t just delicious, but within reach of more people than ever before.

AI with a human touch: How can small businesses innovate responsibly?

What sets Adam and Victoria apart is not just what they do with the tools they have, but the perspective they bring to them. While many treat AI as a side experiment, they’ve woven it into the fabric of how Tyne Chease runs day to day.

“I know AI can be controversial,” Victoria says. “I’d never want it to replace the human aspect of a job. But it’s a really good tool to enhance the work people are doing. It’s night-and-day difference.”

Adam looks ahead. “What excites me is how AI is moving towards autonomy. You’ll be able to give it tasks and it’ll just do them. Not to replace people, but to let humans do more creative work while AI handles the repetitive tasks.”

It’s an outlook that resonates with many small-business owners: embracing new technology as a safety net rather than a shortcut.

Clear policies and confident leadership

Their approach to AI is defined by a lens of responsibility. Adam frames it in practical terms: “Every hire is a big commitment. AI helps increase productivity before we take on new staff, so when we do, the jobs are stable.

He’s mindful to call out the need for guardrails: “Businesses need clear policies about how data is used. Confidential information shouldn’t be identifiable or used to train systems without consent.”

That balance—ambitious about possibility, insistent on responsibility—is where their leadership stands out.

The forefront of ethical tech conversations

Tyne Chease are showing how a small manufacturer can be at the forefront of an ethical tech conversation usually dominated by global giants.

It’s the kind of leadership the future demands:open to technology, grounded in people.

For Adam and Victoria, being at the top of their game isn’t just about making great vegan cheese. It’s about proving that small businesses can adopt new tools with as much integrity as innovation.

Their philosophy is simple: ethics aren’t a limit, they’re the ingredient that keeps Tyne Chease resilient, relevant, and ready to move forward, one round at a time.

Sage Copilot. Your dedicated AI-powered productivity assistant

Step into a new business era with Sage Copilot, built on over 40 years of experience supporting British businesses like yours. Get work done faster with real insights, fewer errors and less admin.

Explore Sage Copilot



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Meet Employment Hero’s new Recruitment Agent for AI interviews


Hiring is the lifeblood of a growing business, but it’s often a bottleneck. The endless cycle of sifting through applications, scheduling calls and conducting first-round interviews consumes hours that you and your team simply don’t have. High volumes of unqualified applicants and inconsistent screening processes only add to the pressure, delaying offers and risking the loss of top talent to faster competitors.

It’s time to stop letting administrative overload dictate your hiring success. We’re introducing a powerful new AI colleague designed to reclaim your time and revolutionise your recruitment process: the Recruitment Agent.

Part of our AI-powered Recruitment Agent suite, the Recruitment Agent automates first-round, structured video interviews. It’s not about replacing human judgment; it’s about augmenting it. This tool handles the repetitive, time-consuming screening so you can focus on what matters most—connecting with the best-fit candidates to build your team.

What is the Recruitment Agent?

Imagine a world where you no longer spend your days conducting back-to-back screening calls, asking the same questions repeatedly. The Recruitment Agent makes this a reality. It’s an AI-driven feature fully integrated into the Employment Hero platform that manages the entire first-round interview process for you.

From generating role-specific questions to inviting candidates, collecting video responses and providing AI-assisted analysis, the Recruitment Agent streamlines every step. It ensures every applicant gets a fair and consistent opportunity to shine, while delivering a pre-vetted shortlist of top contenders directly to you.

How it works: Your new automated workflow

We designed the Recruitment Agent to be both powerful and intuitive, seamlessly fitting into your existing hiring flow. It empowers you with control while freeing you from the manual grind.

Here’s how you can put your new AI colleague to work:

1. Simple setup, powerful results

Getting started is straightforward. When setting up a new role in our Applicant Tracking System (ATS), simply add the Recruitment Agent to one of your hiring stages. The system instantly gets to work. Based on your job description, the AI proposes a structured interview with 4–6 questions designed to assess key competencies.

Questions are categorized to give you a holistic view of each candidate:

  • Motivational: Why do they want this role?
  • Behavioural: How have they handled situations in the past?
  • Situational: How would they approach a future challenge?
  • Role-specific: Do they have the necessary technical skills?

2. Built-in rigour and full control

The Recruitment Agent doesn’t just ask questions; it establishes a clear framework for what a great answer looks like. For each question, you can see the evaluation rationale and scoring rubrics that define the difference between a strong and weak response.

Most importantly, you are always in the driver’s seat. Before sending any invites, you can review, edit, reorder or even rewrite the questions and rubrics to perfectly align with your standards. Once you’re satisfied, you launch the interview stage with confidence.

3. A fair and flexible candidate experience

Once activated, candidates who reach the interview stage receive an email invitation to complete their guided video interview. They have a seven-day window to record their responses, eliminating the stress of calendar clashes and allowing them to prepare and perform at their best.

The experience is designed for clarity and accessibility. Each prompt is displayed with clear on-screen text, ensuring every candidate understands what is being asked. They record their answers question-by-question, creating a structured and consistent process for everyone. This approach not only levels the playing field, but also strengthens your employer brand by projecting professionalism and fairness.

4. AI-assisted review for faster decisions

This is where the magic happens. Instead of spending hours managing calendars and missing calls, the Recruitment Agent provides an AI-assisted scorecard and a summary for each candidate. It evaluates responses against the pre-defined rubrics and highlights top performers.

You can quickly compare applicants based on consistent criteria, watch video responses and identify a high-quality shortlist in a fraction of the time. The final decision always rests with you, but now it’s informed by structured data, not just gut feel.

The benefits of putting the Recruitment Agent to work

Integrating the Recruitment Agent into your recruitment process isn’t just about efficiency, it’s a strategic move that delivers tangible benefits across your business.

Hire faster with pre-vetted shortlists

The biggest advantage is speed. By automating first-round screening, you cut through the noise and get to a list of interview-ready candidates sooner. Early results show a 46% reduction in screening time. This allows you to skip the administrative backlog and move straight to final-stage interviews, shaving days or even weeks off your time-to-hire. In a competitive market, that speed gives you a decisive edge.

Make smarter, more consistent decisions

Bias is an unconscious-but-powerful force in recruitment. The Recruitment Agent helps mitigate it. By using standardized questions and transparent scoring rubrics for every applicant, it ensures your evaluations are objective and evidence-based. This data-backed approach makes it easier to compare candidates fairly and gives your entire hiring team the confidence to make better, more informed decisions.

Create a fair and scalable process

As your business grows, so does the volume of applications. The Recruitment Agent provides a scalable solution that doesn’t compromise on quality. Every candidate receives the same fair and structured experience, regardless of whether you have 10 applicants or 1,000. This consistency reinforces your reputation as a fair and transparent employer, helping you attract top talent.

Ready to transform your hiring?

Stop letting repetitive tasks drain your resources and slow down your growth. The Recruitment Agent and its powerful AI-interview feature are here to help you hire faster, smarter and fairer. By automating the heavy lifting of first-round interviews, we’re giving you back the time to focus on building relationships with the high-potential candidates who will drive your business forward.

This is more than just a new tool; it’s your new AI colleague, ready to work for you. Explore the new Recruitment Agent and discover a better way to build your team.



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Best Recruiter Software in the UK


Hiring great people is one of the most powerful ways to grow your business, but it can also be one of the toughest. According to Employment Hero’s Work that Works Report, 3 in 4 business leaders say that recruitment is a challenge.

The task of sifting through endless CVs, juggling interviews and trying to manage candidate communication is a drain on your time and resources. Relying on spreadsheets and overflowing inboxes isn’t just inefficient; it’s actively holding you back from finding the talent you need to succeed. In fact, the Work that Works report shows that behind business costs, recruitment is the number two reason for productivity declines. 

So, it’s time to stop the admin chaos, the time wasting and start focusing on more efficient solutions. The best recruiter software automates the mundane, streamlines your process and frees you up to focus on what actually matters: connecting with great candidates. 

We’ll cut through the noise to show you what to look for, how to choose the right platform and which tools are leading the pack for UK businesses.

What is recruiting software?

The best recruiter software is a tool designed to manage and automate your entire hiring process. It acts as a central hub for all your recruitment activities, from posting job adverts, to managing interviews and making a final offer.

Modern systems go far beyond simple CV storage. They help you build a seamless and professional candidate experience, ensure you remain compliant with UK hiring laws and provide the data you need to make smarter hiring decisions. By automating repetitive tasks, this software gives you back valuable time, reduces administrative burdens and cuts down your overall recruitment costs.

Best recruiting software: pricing comparison chart

Software

Starting price (per month)

Free trial 

Key features

Employment Hero

Custom

Yes (demo)

All-in-one HR, ATS & Payroll.

Workable 

Custom

Yes (15 days)

AI-powered sourcing.

Recruitee

£143

Yes (18 days)

Collaborative hiring tools.

Teamtailor

Custom

Yes (14 days)

Employer branding focus.

Zoho Recruit

£25 per user

Yes (free trial)

Integrates with Zoho suite.

Best recruiting software reviews

With so many options on the market, choosing the right one can feel overwhelming. To help you cut through the noise and understand what tools are available, we’ve reviewed the best recruiter software on the market. 

Our selection criteria for recruiting software

To give you a clear and useful comparison, we evaluated each platform against five core pillars:

  • User experience: Is the software intuitive for both recruiters and hiring managers? A clunky interface kills adoption.
  • Integrations: How well does it connect with your other essential tools, like your HRIS, payroll system and job boards?
  • Automation: Does it automate key tasks like job posting, candidate communication and interview scheduling to save you time?
  • Compliance support: Does it help you manage compliance obligations, such as right-to-work checks and data protection?
  • Scalability: Will the software grow with you? It needs to support your business whether you’re hiring five people or five hundred.

With these criteria in mind, let’s explore how to find the right fit for your specific needs.

How to choose recruiting software

The best software for your business depends on your unique circumstances. Before you start booking demos, consider these factors:

  • Company size and hiring volume: A small business hiring a few roles a year has very different needs from a large enterprise in a constant hiring cycle. Be realistic about your current and future hiring volume.
  • ATS vs. CRM: Do you need an Applicant Tracking System (ATS) to manage active applications, or a Candidate Relationship Management (CRM) tool to nurture a pipeline of passive talent? Some platforms, like Employment Hero, combine both.
  • Budget: Determine what you can realistically invest. Prices can range from affordable monthly subscriptions to significant enterprise contracts.
  • Must-have features: What are your non-negotiables? Do you need video interviewing tools, onboarding integrations, or advanced reporting?

How to implement recruiting software

Rolling out new software requires a plan. To ensure a smooth transition and high user adoption, follow these best practices. 

First, plan your data migration carefully. Decide what candidate data from your old system (or spreadsheets) you need to import. Next, invest in training. Ensure every user, from HR to hiring managers, understands how to use the platform effectively. Finally, champion the new system internally. Highlight the benefits—less admin, faster hiring, better candidates—to get everyone on board and excited about the change.

Trends in recruiting software

The hiring landscape is being reshaped by technology. One of the biggest trends is the rise of AI in recruitment, which is being used to source candidates, screen CVs and even conduct initial interviews. This helps to reduce manual work and can help mitigate unconscious bias in recruitment.

There is also a huge focus on optimising the candidate experience. Slow, clunky application processes are a major turn-off for top talent. The best recruiter software makes it easy for candidates to apply on any device in minutes. 

Finally, Diversity, Equity and Inclusion (DEI) analytics are becoming standard, allowing businesses to track the diversity of their applicant pools and identify potential bias in their hiring process.

Features of recruiting software

While every platform is different, there are several essential features you should look for in any modern recruitment tool:

  • Job posting automation: Post to multiple job boards with a single click.
  • CV parsing: Automatically extract key information from CVs to create standardised candidate profiles.
  • Reporting dashboards: Track key metrics like time-to-hire, cost-per-hire and source effectiveness.
  • Candidate communication: Use email templates and automated messages to keep every applicant informed.
  • Onboarding integrations: Seamlessly transfer candidate data to your HR system to kickstart the onboarding process once an offer is accepted.

Benefits of recruiting software

Implementing the right system delivers tangible benefits. The most immediate is the time saved on administrative tasks. Instead of manually posting jobs and screening CVs, your team can focus on high-value activities like interviewing and building relationships with candidates.

This efficiency leads to a better hiring process overall. It helps you build a strong talent pipeline, improve the quality of your hires and create a positive brand reputation through a slick candidate experience. It’s a core component of effective recruitment marketing strategies.

Costs and pricing for recruiting software

The best recruiter software pricing typically falls into a few common models. Some providers charge per seat, meaning you pay for each user who needs access. Others charge per job post, which can be cost-effective for businesses with low hiring volumes.

For larger organisations, enterprise plans offer custom pricing based on company size and feature requirements. Always ask about implementation fees, support costs and any other hidden charges to understand the total cost of ownership.

3 Best recruitment platforms

Here we spotlight three of the best options for UK employers, each with a different strength.

Employment Hero

Employment Hero offers an Employment Operating System (OS) that integrates hiring directly with HR, payroll, employee engagement, compliance and more. It’s more than just the best recruiter software, it’s a complete employment management platform.

Skip outdated job ads and get access to top talent, without the hassle. Employment Hero’s intelligent platform allows you to manage the entire hiring funnel in one place. From finding top talent with Smart Match, our AI powered talent matching shortlist that removes the need for time consuming job ads, to moving candidates through the hiring process with our ATS. 

And the best part? Due to the fully integrated nature of the platform, successful candidate data flows seamlessly into HR, empowering you to onboard, manage compliance documents and pay your new team member, ensuring a smooth transition from applicant to employee.

 It’s the perfect foundation for a strong recruitment process. 

Best free recruiting software

For businesses on a tight budget or those just starting, some platforms offer a free entry point.

Zoho Recruit

Zoho Recruit provides a free tier that is surprisingly robust for a no-cost option. It includes features for tracking candidates, scheduling interviews and posting to job boards, making it a great starting point for small businesses. 

It’s part of the wider Zoho ecosystem, so it offers a clear upgrade path as your needs grow. The limitations of the free version are in customisation and automation, but it covers the essentials well.

Best budget recruiting software

If you have a small budget but need more power than a free tool can offer, there are several affordable options.

Recruitee

Recruitee is known for its user-friendly interface and collaborative hiring features, with pricing that is accessible for SMEs. It encourages teamwork by making it easy for hiring managers and HR teams to share feedback and evaluate candidates together. 

Its ‘Launch’ plan offers essential ATS features at a competitive price point, making it a strong contender for growing businesses looking to professionalise their hiring without a huge financial commitment. 

Key features of recruitment platforms

The best recruiter software simplifies hiring, boosts efficiency and delivers a great candidate experience. Here are the core features to look for:

Centralised applicant tracking: An ATS keeps every candidate and hiring stage in one place, eliminating messy spreadsheets and helping you spot bottlenecks fast.

Automated job posting: Post to multiple job boards and social channels with a single click, saving time and widening your reach.

Smart sourcing tools: AI-powered search helps you find and recommend the right candidates faster, using data from your database and external networks.

Collaborative hiring: Shared notes, scorecards and feedback tools make it easy for hiring teams to work together and make confident decisions.

Interview scheduling and communication: Automated messages, calendar integrations and reminders streamline interview coordination and keep candidates engaged.

Reporting and analytics: Dashboards track key metrics like time-to-hire and cost-per-hire, giving you insights to refine your process.

Compliance and integrations: Built-in compliance tools support GDPR and right-to-work checks, while integrations with HR and payroll systems ensure a smooth transition from hire to employee.

Try Employment Hero’s Recruitment Software

Finding and hiring great people shouldn’t be a struggle. The best recruiter software helps you cut through admin, connect with quality candidates and make faster, smarter hiring decisions.

With Employment Hero’s all-in-one Employment OS, you can manage every step of the employee journey, from hiring to onboarding, managing complex payroll, supporting compliance and more – all in one place. Our integrated platform eliminates manual work, reduces hiring costs and helps you deliver a seamless employee experience that strengthens your employer brand.

One system, everything employment. 



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