A report from the Department of Business, Enterprise and Regulatory Reform (BERR) shows 13% of companies with fewer than 50 staff pay consultants to help them work out how much holiday to give staff.
BERR found 39% of small businesses pay for advice in calculating staff National Insurance contributions, 30% pay to have pay for help in writing employment contracts and 22% pay for advice in managing maternity and paternity leave.
Just under a quarter (24%) do not feel confident to manage their employment obligations and 53% do not think free advice will help them comply with employment regulations, and therefore feel the need to pay a consultant.
But nearly all small business leaders (96%) think the best piece of business advice they ever received was free.
Pat McFadden, minister for employment relations, said: "Every penny counts and we do not want small businesses spending money on advice and information the Government provides free of charge. The Government is committed to showing small businesses where savings can be made."
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