Your Handy Business Travel Checklist

You’re off on a business trip. Amongst all the meeting preparation, getting your presentation ready and making sure your laptop is charged, there is still your packing to do. Overlook this at your peril, however, because there will always be something vital you’ll wish you never left behind. Whilst you’re probably not likely to omit to pack your passport, boarding pass and currency, there are things you really could do with not forgetting.

If you’re packing in a hurry for a business trip, use this at-a-glance guide to make sure you don’t miss anything essential.

Essential item 1: Health Cover. If you’re travelling within Europe, make sure you have a valid European Health Insurance Card (EHIC). It’s free of charge and will allow you access to free or discounted healthcare across the EU. This includes pre-existing conditions. You should also make sure you have adequate travel insurance that covers you for emergency treatment and repatriation.

Essential item 2: Chargers and Adapters. You won’t get very far if you can’t charge your smartphone, tablet or laptop. As well as your chargers, you’re going to need the appropriate power adapters. Make sure you have the right ones, because at very least they won’t work. At worst, they could actually damage your devices, or even cause a fire (it has been known!). Also bear in mind that hotel rooms are never overly generous when it comes to power sockets, so it could pay to pack a multi-socket adapter.

Essential item 3: Internet Access. Your hotel may say it offers Wi-Fi, but just how reliable it is could be anyone’s guess. Tethering from your mobile could cost you dear when you are roaming, so if you are going to be dependent on internet access during your trip, and let’s face it, we’re all pretty much internet dependent any time of the day, reassure yourself by getting yourself a Wi-Fi dongle or by pre-loading an international mobile hotspot with credit.

Essential item 4: Pen and Paper. Yes, we said pen and paper! What happens if your device battery runs out and you are left with nothing on which to take notes or write down something essential, like the details of a potentially lucrative new contact? Pack a pen and notebook and you’ll have a back-up.

Essential item 5: USB Drive. Worst case scenario, your laptop fails. Your presentation is stored on it. What to do? If you have a back-up copy on a flash drive, you can borrow, hire or even buy another device, and you’re ready to go.

Essential item 6: Ear Plugs. You have to be up at the crack of dawn to deliver your presentation. But your hotel room neighbours are making the most of their holiday, or there’s some sort of fiesta going on right below your balcony. Cue the ear plugs: pop them in and enjoy a restful night’s sleep, so you are primed and ready for your big day.

Business travel can be stressful, but if you go well-equipped, you’ll have a very different and far more positive experience.

Statutory Pay Freeze for 2016

The Government has announced that there will be no annual increase in various types of statutory pay in 2016.

Statutory maternity and paternity pay, shared parental pay and adoption pay will see no rise from the current rate of £139.58 or 90% of an employee’s average weekly earnings if this amount is less than the statutory rate. The rate of statutory sick pay has also been frozen at the current weekly rate of £88.45.

There is no statutory requirement to increase statutory pay rates annually, but they do normally go up every April so that they rise alongside the consumer price index (CPI). However, the fact that the CPI actually dropped in the year leading up to September 2015 by 0.1 per cent prompted the freeze for the 2017-2017 period.

Employers are usually able to claim back 92 per cent of employees’ statutory maternity pay, paternity pay, adoption pay and shared parental pay.

To be entitled to statutory payments, an employee’s average earnings must be equal to or more than the lower earnings limit, which has also been frozen at £112.

Useful Statutory Pay Guides for Employers

You may find the following Government guides to statutory pay useful:

Statutory Sick Pay: 

https://www.gov.uk/employers-sick-pay/overview

Maternity Pay & Leave:

https://www.gov.uk/employers-maternity-pay-leave/entitlement

Paternity Pay & Leave:

https://www.gov.uk/employers-paternity-pay-leave/entitlement

Adoption Pay & Leave:

https://www.gov.uk/employers-adoption-pay-leave/entitlement

Shared Parental Leave & Pay:

https://www.gov.uk/shared-parental-leave-and-pay-employer-guide/overview

Additional Parental Pay & Leave:

https://www.gov.uk/employers-additional-paternity-pay-leave

If you are in need of any advice, you should talk to your bookkeepers. They will be able to guide you through how statutory pay works, and will help you forecast ahead if you have staff taking leave in the near future.

Crucial Christmas Considerations for Employers

It’s that time of year when as an employer, you are faced with a raft of trials and tribulations. Christmas always tends to throw up all sorts of issues where annual leave, discipline and discrimination are concerned. Here are some of our top tips on what you should be doing in order to deal with these issues effectively, so that your workplace Christmas can be a peaceful one.

Be Clear on Policy

Your seasonal policies should be well documented and managers and supervisors should be familiar with them. Make sure you have policies in place covering everything from annual leave to social events.

It is vital to have policies in place covering social events because as an employer you have a duty of care towards your personnel, plus there’s the issue of the Equality Act 2010 that makes you liable when it comes to discrimination, victimisation and harassment. You need to be able to demonstrate that you have taken practicable steps to prevent anything along these lines taking place.

Beware Discrimination

Religious discrimination is something that causes employers a great deal of worry at Christmas. Will your festive party offend those who do not celebrate Christmas? Hopefully not, because staff parties should be focused on morale boosting rather than any sort of religious observation.

It is wise in any case to be mindful of all the religious festivals that fall throughout the year, and ensure you are balanced in your approach.

You may also come across problems with Christian employees refusing to work on bank holidays that have religious significance. Again the Equality Act 2010 applies, which means you cannot treat staff any differently to others because of their religion. Workers do not have a right to time off in order to observe religious occasions, but if you do refuse them, it could constitute religious discrimination. Putting a policy in place is essential.

Know the Rules on Annual Leave

Employees do not have a right to take holidays during the festive period and unless there is an agreement to the contrary, notice equating to twice the length of the holiday they wish to take must be given.

If taking leave is not acceptable to you at this time of year, then you can give counter notice stating that the leave cannot be taken, providing this notice equates to the length of the leave requested, and that you are not stopping the employee taking the leave they are entitled to for that holiday year. On refusing leave that falls within allowable parameters, you must always be able to state valid business reasons.

Bear in mind that actions taken against employees who fail to attend work without permission should be reasonable. There have been cases where employees have been dismissed for this reason, and later the dismissal has been found to be unfair by the Employment Tribunal.

It is also worth noting that unless a contract states otherwise, employees are not entitled to bank holidays off, neither are they entitled to any additional pay when working them.

Confused about Christmas as an employer? Chat your concerns through with your bookkeepers in the first instance and they’ll point you in the right direction as to the advice you need to get things right. 

What you Need to Know About Competition Law

Competition law promotes or seeks to maintain market competition by regulating anti-competitive conduct amongst companies. Any company that fails to comply with UK or EU competition law will meet with serious consequences.

In April 2014, the UK Office of Fair Trading and the Competition Commission merged to form the new Competition and Markets Authority (CMA). Since then, any business operating in the UK has been subject to a more robust level of enforcement of the rules, including increased fines and more criminal prosecutions where relevant.

Every business, regardless of is size, industry sector or legal status, must make itself aware of how competition law works so that its obligations can be met and fines and prosecutions therefore avoided, and on the other side of the coin, so that it can protect its market position.

There are two sets of competition rules in operation in the UK and they run concurrently. One concerns UK-wide trade and this is covered by the Competition Act 1998 and the Enterprise Act 2002. For anti-competitive behaviour that extends outside of the UK to other EU Member States, this is covered by Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU).

What is Prohibited?

Both UK and EU competition law prohibit two key types of anti-competitive behaviour. This includes anti-competitive agreements, and abuse of a dominant market position.

Agreements, arrangements and business practices which prevent, restrict or distort competition or aim to, and which affect or may affect trade in the UK or EU will be considered a breach of the legislation.

What are the Consequences of a Breach?

Companies in breach of anti-competition law can face fines of up to 10 per cent of group global turnover. Companies will also expose themselves to possible actions for damages and may also find their agreements unenforceable. Directors could face disqualification or criminal sanctions if the breaches are serious.

The new Consumer Rights Act 2015 provides that businesses that find themselves at a competitive disadvantage from breaches in competition law will be offered swift, low-cost remedies.

Suffice it to say, all businesses must make themselves fully aware of the provisions of competition law. Your bookkeepers will be able to explain the fundamentals, and your lawyers will help you word your agreements in such a way that they comply with the law.

How Employee Referral Schemes Could Help you Find the Right Staff

If like a significant number of employers you find it a challenge to source the right calibre of personnel for your business and have exhausted all the traditional avenues such as advertising, recruitment consultants and social media, there is another initiative you may wish to try.

Employee Referral Schemes have become increasingly popular UK-wide and, says the Institute of Personnel and Development, 47% of UK companies run them.

How Employee Referral Schemes Work

The schemes work by encouraging employees to refer potential candidates for vacancies. In exchange for a successful introduction, they are rewarded either with a financial bonus, or other benefits such as additional holiday.

One of the key benefits of Employee Referral Schemes is that they are less costly than traditional recruitment methods. Additionally, employers tend to find that new team members recruited through this avenue will be especially motivated to perform to the very best of their ability as they will be mindful of how this will reflect on the person who referred them.

Advantages & Disadvantages

And then there’s the fact that new recruits that join a business through employee referral are likely to need a shorter settling in period because they already know some of the existing team.

When an existing employee discusses a referral with a potential candidate, they are always going to give them an honest view of the company that could become their employer. This will start the new recruit off on a good footing as their expectations will be realistic.

So far so good but, as with anything, there will be disadvantages. Firstly you have to consider what would happen if things do not work out with the new employee, and how that would affect the relationship between you as the employer and the referring member of staff. Employee Referral Schemes can also limit the flow of fresh ideas into the business because referrers and referees will tend to be like-minded.

What Makes a Good Scheme?

The best Employee Referral Schemes are well thought through so they catch employees’ attention. Finding out what employees really want in return for referrals is essential: Cash? Days off? Gift vouchers? Of course what you offer needs to be cost effective.

Keeping the scheme simple is also important. If it’s not understood, employees won’t engage with it. You’ll also want to keep its administration straightforward too so that it doesn’t drain your resources.

So you have your scheme, now you need to tell your staff about it. The more reminders they have, the better. So aside from an initial email, fix posters in the kitchen, by the water cooler and anywhere else they tend to gather. Encourage them to use their social platforms to network any vacancies. LinkedIn is probably the most effective, but Facebook and Twitter can be just as good.

And finally, once there has been a successful referral, make sure everyone knows about it. This will serve to inspire others to do the same.

If you’ve been thinking about introducing an Employee Referral Scheme into your business and would like to discuss in more detail how it would work in practice, why not approach your local bookkeepers for advice?

How to Guard Your Small Business Against a Cyber Attack

The very recent major website cyber breach suffered by TalkTalk has left businesses exceptionally worried. And with the increasing use of the cloud to store confidential data and information, it is no wonder.

Whilst it seems the larger companies appear to be the key targets for cyber criminals, the fact is, the threat extends to companies of all sizes, including the smaller business.

Unfortunately, small businesses tend to lack the resources and policies that are designed to defend against such attacks. Yet because they are increasingly using cloud based services, they still face the same level of risk as larger companies.

So what to do? You need to focus on minimising your vulnerabilities, and implement policies and initiatives that are rolled out throughout the business, including to any remote workers.

Start with Email

By encrypting emails and other communications, you force potential hackers into a fight against a secondary layer of security. Generally they won’t bother, preferring to move on to an easier target.

Be Strict with Password Policies

Set a companywide policy on passwords and ensure everyone who uses technology is trained. Introduce them to smart passwords that contain unusual characters and a combination of letters and numbers. NEVER use any passwords that can be associated with a user such as dates of birth and always vary passwords across different platforms. Needless to say, passwords should NEVER be written down. It is important to keep check of passwords so that you are in full control so think about using a management platform such as LastPass, PassPack or 1Password.

You may also further strengthen security by using a dual layer password system where possible, so that users have to enter a second set of characters in order to login. Wherever available, enable these features.

Be Aware of and Train on Warning Signs

Make sure that each and every member of staff is trained to identify potential cyber threats such as bogus emails or phishing scams. Email providers are getting better and better at detecting dubious emails, but some still find their way past the junk folder. Train staff to be on their guard for emails that ask them to click on a link to verify their account details, or enter bank or credit card information. They should be wary of suspicious looking attachments, in particular zipped up files that could contain malicious software. And emails filled with bad spelling are a big warning sign too.

Make sure these emails are never opened or actioned and that all bogus emails are reported as spam. The domain can also be blacklisted from your email settings. It is well worth considering using an email scanning system such as Avast or AVG. 

Choose a Robust Firewall

It is imperative that every device, including PCs, laptops, tablets and mobiles, is installed with firewall and anti-malware and spyware software so that any potential threats can be quarantined and deleted before they turn into a problem.

Don’t forget that hackers can get through mobile apps, and also telephone systems through tollfraud, which is something we’ve covered previously.

Taking Care of Lone Workers

According to the British Security Industry Association (BSIA), more than six million UK employees work without supervision or in isolated conditions, and a high proportion of these work in situations or locations that pose a considerable risk.

Under the Health and Safety at Work Act 1974, employers are required to guarantee the safety of their staff. If you employ lone workers, or any of your staff may be at particular risk, maybe because they are in contact with potentially violent behaviour or they work late at night or early in the morning, then the following information may prove very useful.

Free Guide for Employers of Lone Workers

If you employ lone or vulnerable workers, you may be interested to read the free BSIA publication Lone Workers: An Employer’s Guide. This sets out your legal obligations and offers easy to follow advice.

There is also an annual exhibition, the Lone Worker Safety Expo 2015, held every November at the Olympia Conference Centre in London. This year it takes place on Tuesday 24^th November 2015.

Security Measures

Security is clearly a major consideration and there are numerous measures and products available that are specifically designed or suited to lone or vulnerable worker situations.

You should always consult a security professional who will carry out a tailored risk assessment at your premises and produce a security plan bespoke to your needs. This will usually incorporate a number of security measures, which might include:

Access Control: a system that allows only authorised personnel to access given areas.

Door Entry Systems: these give you precise control over who can enter and leave the building.

Electronic Locking Systems: whether you lock in to protect or lock out to prevent unwanted access, these systems can be combined with intruder and fire alarms and CCTV to provide a comprehensive safety net.

Panic Alarms: staff can call for urgent assistance using a panic button, either from another staff member, security or the emergency services.

Lone worker safety is a major issue. Talk to your security consultants and have them tailor you a plan to protect your valued staff. Need a recommendation? Your bookkeepers will be able to guide you in the right direction.

Petition to Halt New Tax on Share Dividends

As of April 2016, notional 10% tax credit on dividends will be abolished. Instead, a £5,000 tax-free dividend allowance will be brought in. Dividends above this level will be taxed at 7.5% on the basic rate, 32.5% on the higher rate and 38.1% on the additional rate.

The changes, announced in the Chancellor’s summer budget, have been met by much furore amongst the small business community, and a campaign has been launched with the aim of attracting the support of 100,000 business leaders via signatures on a petition. Once that figure is reached, the campaign will be considered for debate in Parliament.

70,000 Signatures Still Needed

Launched on September 10 by small business owner Serena Humphrey of financial Nottingham based training company The F Word, the petition has so far been signed by almost 30,000 people.

Serena said, “There is massive interest in scrapping the tax on dividends and helping small and medium-sized enterprises have a better chance of surviving. We’re asking the Government to reconsider the tax.”

Serena points out that pension auto-enrolment, the increase in the Minimum Wage and insurance premium tax and the new Living Wage for the over 25s will make it even more of a challenge for smaller companies to survive. “This dividend tax is an attack too far on small businesses,” she says, continuing: “Those profits have already been taxed at 20 per cent, so this 7.5 per cent tax means we’re paying 27.5 per cent tax, well above the basic rate.”

Where to Find the Petition

If you agree with Serena and would like to sign the petition you can do so by following this link: http://petition.parliament.uk/petitions/106525. The deadline is 24 February 2016. The Government’s response to the campaign can also be read by following the same link.

If you are concerned as to how the new dividend taxation system will affect your business finances, don’t hesitate to discuss the matter with your bookkeepers who will be able to explain the potential effects in your particular situation.

Important Considerations for Employers of Remote Workers

The Office for National Statistics reports that 13.9 per cent of UK workers carry out their jobs remotely. That translates as 4.2 million people, and it is a figure that is on the rise.

As an employer offering remote working, you will enjoy numerous benefits, but there are a lot of considerations to take into account, from data protection and insurance to health and safety.

Data Protection

Any loss of data through a breach of security, theft or malicious attack can be deemed a breach of the Data Protection Act.

With remote workers, it can be difficult to lock down the security of your data. You will no doubt be using a cloud based network, which will need to be carefully set up and meticulously monitored to ensure its security. Of course, privacy laws will need to be considered as part of this monitoring.

One question that regularly arises is what degree of control you allow your worker when it comes to setting up and using technology. For example, would you prefer things like email set up, security settings, software configuration and device locking to be left to the member of staff, or controlled by your IT department? The latter would tend to be the safer option of course, but may mean more pressure for IT personnel.

Security

It is a good idea to pay a visit to your remote workers’ premises so you can run an audit on security measures and if necessary, make any recommendations for improvements. You’ll want to ensure physical work related articles are protected against flood or fire and of course, theft. Ideally any paperwork containing sensitive data should be kept locked away, as should any devices used to store data, such as tablets, laptops or portable drives.

It is good practice to issue written guidelines to your workers setting out rules such as storing anything sensitive in an insurance graded safe overnight or whilst not in use, and keeping paperwork in a locked, fire-resistant filing cabinet.

Health & Safety

Regardless of where they work, you are responsible for the health and safety of your employees.

If your staff work at a desk using display screen equipment (DSE) then you will need to comply with The Health and Safety (Display Screen Equipment) Regulations 1992. These regulations stipulate that if you have provided the workstation, then you must make sure that it meets minimum requirements, and you must carry out a risk assessment. If you did not provide the workstation, then you are still required to issue advice on the safe use of any equipment and safe working practice.

If you are in any doubt over your duties as an employer of remote workers, why not have a chat with your bookkeepers? They’ll be able to inform you of the steps to take, and put you in touch with any other professional for advice on the law, security and insurance.

Tax Cut Makes Rent a Room Scheme Even More Attractive

If you rent out a spare room, whether to a lodger or to holiday or business travellers, there is good news in store.

The Rent a Room scheme has since its introduction a few years back offered the opportunity to earn extra income. It’s a programme that is open to owner occupiers or tenants of rental properties (whose tenancy agreement allows) who are able to let furnished accommodation to a lodger.

Up until now, the scheme has allowed the people doing the renting to earn up to £4,250 a year tax free, or £2,125 if renting out jointly. This amount has been frozen since 1997. However, from 2016 this amount is set to rise to £7,500 and £3,250 respectively.

The additional allowance is worth £1,300 a year to a higher rate taxpayer, and £650 a year to a basic rate taxpayer.

Who Qualifies for the Rent a Room Scheme?

As long as the property is your main residence and the room you are renting is furnished, you are permitted under the scheme to earn up to £144 per week in rent. If you are a tenant rather than a homeowner, then you will need to have a clause in your tenancy agreement allowing you to rent a room.

According to Spareroom.co.uk it is estimated that in England there are 19 million empty bedrooms, many of which are in the homes of pensioners who find themselves unable to downsize. A lot of the other empty rooms belong to ‘empty nesters’ whose older children have flown the nest.

What you Need to Know About Tax

If you are earning less from renting a room than the threshold of the scheme - £7,500 per year from 2016 – then you don’t need to do anything as your exemption from tax will be automatic.

However, if you are earning more than the threshold, then you will need to complete a tax return. In doing so, you can either choose to opt in to the Rent a Room scheme, in which case you will need to state this on your tax return so you can claim your tax-free allowance, or you can decide not to opt in, in which case you just set down your income and associated expenses using the property pages of the tax return.

If you are new to tax returns then you will need to contact HM Revenue & Customs (HMRC) to request one, and you can do this using this link.

  

Of course, your local bookkeepers will be a mine of information and advice on the subject, so why not seek out their help?

Does your Company Logo Actually Belong to your Company?

Most businesses have a logo these days; even the smallest companies appreciate the importance of carrying an identity to reinforce their brand.

Logos form a significant part of the marketing armoury because they allow people to instantly recognise a business. When you see the Lacoste crocodile for example, or the bitten-into Apple logo, you know straight away who you are dealing with. These examples work at all levels of the business scale and demonstrate how valuable a logo can be.

With this in mind, it may come as something of a surprise that in some cases, companies don’t actually own their own logos. Here is a story to illustrate what we appreciate has probably come as something of a shock to you.

An Innocent Tale

Travel back in time in 1998 when smoothie maker Innocent was a new business. It commissioned a logo to be designed by a branding company, which produced the now well-known halo/face design. The two parties liaised over how the designers would be paid for their work, but no contracts were ever signed and no money changed hands.

Two years later in 2000, Innocent applied to register its logo as an EU trade mark. At first the registration was accepted, that was until the company that had designed the logo applied to cancel the registration, claiming that they were the rightful owners of the logo. Innocent could not own the logo trade mark, because no copyright had been assigned.

What the Law Says

According to UK copyright law, when a business commissions a design agency to undertake any type of design work, the designer is deemed to own the copyright on the designs, unless an agreement to the contrary has been signed.

Whilst the party doing the commissioning retains an implied licence and with it a right to use the logo once they have paid for its design, the intellectual property rights do not automatically become the property of the commissioner, unless there is a contract stating otherwise.

What to do?

Every time you commission any design work, you need to request written assignment of copyright from your design agency courtesy of a contract agreed and signed by both parties.

Check ownership of your current logo and branding work. If you are not clear who owns it then talk to a lawyer about having a copyright assignment contract drawn up to present to your design agency. Your logo is valuable: make sure you own it!

Dealing with E-Cigarettes in the Workplace

Employers are having a hard time dealing with the scenario of e-cigarettes in the workplace, for numerous reasons.

Action on Smoking and Health (ASH) says that in the region of 2.1 million adults in the UK use e-cigarettes, which raises the question of whether or not a company’s smoking policy should differentiate between the use of traditional cigarettes and e-cigarettes.

What is the Legal Position on E-Cigarettes?

Because the act of smoking involves a substance being burnt, e-cigarettes fall outside the scope of smoke-free legislation. Because of this, companies can make their own decisions as to whether to allow employees to use e-cigarettes at work.

Considerations When Creating a Smoking Policy

There is plenty to consider on the subject of e-cigarettes when putting together your smoking policy.

Firstly, you should bear in mind that some workers may be using e-cigarettes as part of a smoking cessation plan. For this reason, you may wish to support their use.

Next up, you have to think about other employees. They may find the vapour irritating, and there may be a health risk through passive consumption. There is little research at this stage as to whether there are any health risks associated with inhaling the vapour from e-cigarettes, but it is still something to consider.

E-cigarettes can be very similar in appearance to traditional cigarettes which may lead to other employees or visitors to your premises thinking that smoking is going on in the workplace. Even if you do allow staff to use e-cigarettes then it would be a good idea to put a layer of management approval in so that it is known who is using them for the purposes of distinguishing between those and traditional cigarettes.

If you are going to allow employees to use e-cigarettes in a designated area, then you will need to think about whether it should be the same area used by traditional smokers. Taking into consideration the fact that e-cigarette users are fairly likely to be attempting to quit the use of traditional cigarettes, they may find it difficult to be around traditional smokers. It may be an idea to create separate areas.

Take Advice When Drawing up Smoking Policies

Whatever you decide to do, you need to be clear on your rules and set out policies that everyone understands. Talk to your employment lawyers who will help you draw up policies in accordance with the approach you settle upon, and that stay in line with the law.

Landlord Wear and Tear Allowance to be Scrapped

The July budget headline that mortgage interest relief for private landlords is to be restricted to the basic rate of income tax has perhaps overshadowed another announcement by the Chancellor that is going to leave landlords reeling.

By April 2016, the current system whereby landlords of furnished residential properties are allowed to deduct 10 per cent as a tax break for wear and tear will be no more. Instead, only actual costs incurred will be deductible.

Whilst it is not yet clear how the new fair wear and tear system will work in practice, there is a glimmer of good news for residential landlords, as the Government looks set to reform how they can account for the costs incurred in maintaining and enhancing their rental properties.

Government Issues

At the moment, the issue the Government has is that the law dictates landlords are able to offset their tax liability by 10 per cent, regardless of whether they spend money on improving their rental properties. Feeling this is unfair and out of line with other business types, they are changing the rules. Landlords will still be able to deduct costs, but they can only be genuine ones.

Recouping Losses

This announcement, alongside the headline plans to decrease tax relief on buy to let mortgages down to the basic rate over the next four years, is no doubt going to have you thinking of ways to recoup losses if you are a landlord.

Why not discuss the issue with your bookkeepers? They’ll be able to put together cashflow forecasts and profit and loss projections to help you fathom your way through the forthcoming changes, and make informed decisions along the way.

Fit for Work Service Now in Place

The Fit for Work service, formerly known as the Health and Work Service, is now in place and ready to provide occupational health assistance to employees, employers and GPs, free of charge.

A while back, the Government undertook a review of the sickness absence system in Great Britain, and as a result, decided to set up a health and work assessment and advisory service. The service would have the goal of making occupational health advice much more easily available to employers and employees, so that they were able to manage sickness absence in a more streamlined fashion.

What the Service Includes

The Fit for Work service opens up access to health and work information. This is made available via a telephone advice line for employers, employees and GPs. There is also a website portal boasting a variety of useful advice and information. You can read more in the Fit for Work: Guidance for Employers publication.

There is another element of the Fit for Work service, and that is a referral system that allows qualifying employees who have been off sick for 28 days or more to be referred for a free, confidential occupational health assessment, together with a return to work plan.

The referral service has been rolled out gradually and GPs are able to start referring patients now across England and Wales. Employers can start making referrals from autumn 2015 once GP referrals are complete.

Tax Exemption on Medical Treatments

Also, from 1 January 2015, a tax exemption was made available of up to £500 per year per employee on medical treatments. Again this was aimed at helping to get workers back into their roles after illness. The exemption is applicable to treatments recommended by health professionals within the Fit for Work service, as well as health professionals within occupational health services arranged by employers.

Unsure as to how the Fit for Work service operates? Want to learn more about your eligibility for tax exemption on medical treatments? Talk to your bookkeepers who will be able to advise you accordingly. 

Changes to the Law on Marketing Calls and Texts

When the Information Commissioner’s Office (ICO) was given enhanced powers on 6^th April 2015 allowing action to be taken against companies making nuisance calls and sending spam messages, the whole marketing landscape changed.

Previously, the ICO only had powers to issue a civil monetary penalty if it could be proved that the company behind the marketing had caused ‘substantial damage or distress’. But now this provision has been abolished, it means the ICO can pursue action if it is simply able to prove that a company is in breach of the Privacy and Electronic Communications (EC Directive) Regulations 2003.

Telemarketing Rules

The Regulations permit companies to make marketing phone calls to individuals without prior permission being gained. However, they do provide that the call-making company must first make checks via the Telephone Preference Service register so as to make sure the individual has not opted out of generally receiving marketing calls.

Messaging Rules

When it comes to text messaging, there is a different set of rules. Permission must be expressly acquired before sending marketing text messages and companies must make it absolutely clear to the recipient that they are able to out of receiving future messages, and provide details of how they can do so. 

A substantial number of complaints – 175,330 - were made to the ICO concerning nuisance calls during 2014, and penalties were issued between April 2014 and March 2015 totalling £360,000. Now the ICO has enhanced powers, it is predicted that the penalties will start to rise.

How to Handle Unwanted Calls and Messages

Knowledge of the Privacy and Electronic Communications (EC Directive) Regulations 2003 is vital for businesses so they can make sure all marketing activity is carried out inside of the law.

Unsolicited telephone calls, silent or dropped calls, pre-recorded marketing messages, spam or scam emails or texts: if you find yourself on the receiving end of any of these as a consumer, you can notify the ICO directly.

As a business, if you are receiving silent or abandoned calls then be aware that it could be a tell-tale signal of toll fraud.

What you Need to Know When Taking on an Apprentice

If you’ve been thinking about taking on one or more apprentices as a way to fill skills gaps in a cost effective way, taking advantage of the various apprenticeship grants that are often available, you probably have a selection of questions when it comes to things like their rights, pay and training.

In this article we run through some of the most frequently asked questions about apprentices to help you obtain a clearer picture before you make your decision.

Question: Are Apprentices Entitled to Statutory Pay?

Answer: Yes. There is a special set National Minimum Wage (NMW) for apprentices who are aged between 16 and 18 years or who are over 19 and in their first year of the apprenticeship. Anyone else on an apprenticeship scheme is entitled to the NMW applicable to their age. You can of course set your own pay rates, as long as they meet or exceed the NMW. You must also ensure your apprentices are given at least 30 hours work per week.

Question: Do I have to give the Apprentice a Permanent Position on Completion of their Contract?

Answer: No, there is no legal requirement for you to provide an apprentice with a permanent job. The apprenticeship contract lasts only for the duration of the training, so when this is complete, you are at liberty to not renew it. If you do this, it will be treated as a dismissal and you will need to provide a written reason. The ACAS Dismissal Code will apply, but you will not need to provide a notice period. Further, you will not be required to source alternative employment for the apprentice.

Question: Do Apprenticeships Have to Last a Certain Amount of Time?

Answer: Yes. An apprenticeship must last for a fixed period and this should be agreed at the start and stated in the contract. Apprentices aged between 16 and 18 years are entitled to a contract of at least 12 months. Other apprenticeships will usually last for anything between one and four years and this will depend on the time required to attain the qualifications and skills required for the job.

Question: What Does an Apprenticeship Need to Include?

Answer: There are numerous things that must be included in an apprenticeship. These range from work experience, on the job training and study release so that official qualifications can be attained.  Your goal is for the apprentice to develop knowledge and skills around a qualification and you will need to have a fixed programme in place to enable them to do so. Other requirements include the monitoring, mentoring and support.

Question: How do I Deal with Apprentices in Regard to Employment Law?

Answer: You must treat an apprentice as you would any other employee regarding pay, leave and things like disciplinary matters. Apprentices are fully covered by the Working Time Regulations.

If you are thinking about hiring an apprentice and could use some assistance and advice, talk to your bookkeepers who will be able to answer any further questions you may have and get you ready for your new intake.

Under-Insurance Warning for Businesses

The Building Cost Information Service, part of the Royal Institution of Chartered Surveyors, has announced that close to 80% of UK commercial properties could be underinsured for rebuild costs by as much as 60%. For a property worth £500,000 this would mean a shortfall of £300,000: a very worrying thought.

The problem could stem from the fact that during an economic downturn, business owners tend to assume their properties have remained stagnant in value. So when they renew their policies, they don’t bother to think about increasing the sum insured for rebuilding purposes.

However, it should be noted that the market value of a property is not in question; it is the rebuild costs that need to be considered, and these can vary quite substantially from the value.

Rising Rebuild Costs

Rebuild costs have risen considerably recently, due largely in part to the changes in the Building Regulations that were introduced in 2002 bringing in a range of stipulations that drove construction costs up. These included things like higher levels of fire protection, improved accessibility, energy performance measures and better drainage. Failure to comply with the Regulations is said to have the potential to add 30 per cent to the cost of a build. And then there is the increase in labour and materials costs to add to this. All of this demonstrates the vital importance of reviewing a sum insured for rebuild.

Businesses may also be under-insured for another reason, and that is a lack of risk assessments and professional valuations, again a symptom of cost cutting in the economic downturn. The trouble is, this could be a false economy, especially when you consider the increase in harsh weather events and terrorist threats that could put properties at a greater risk.

Calculating the Rebuild Value

If you think you are able to calculate your own rebuild value, you may wish to think again. There really is a lot to consider, including Building Regulations compliance, local authority planning fees, geological conditions and materials and labour costs. And if your building is older then you may need to include provision for dealing with the likes of asbestos.

Summarising, when you are renewing your buildings insurance, or taking out a new policy, be very careful about the figure you quote as your rebuild cost. The advice is to invest in a professional reinstatement valuation survey to ensure the sum insured is adequate. If you cannot afford to stump up any shortfall yourself, make sure you have sufficient cover.

Preparing for Consumer Rights Act 2015 Changes

As a business you have until 1 October this year to make sure your staff are aware of the rest of the changes being brought in by the Consumer Rights Act 2015.

The Act replaces various laws surrounding business-to-consumer transactions, including the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982. It serves to outline a clearer path for consumers to understand their rights and the solutions available to them should services or goods fail to be fit for purpose.

There will also be clarification on the periods for repair, replacement and refunds on goods and services and the process by which small businesses can take legal action against larger companies that are breaking competition laws.

Statutory Remedies

If a service fails to meet the provisions of a contract, then consumers will have statutory remedies of ‘repeat performance’ and will also be entitled to a price reduction. If as a business you breach your duty to provide services with ‘reasonable skill and care’, or fail to comply with information you have provided to the consumer about the service, then the consumer will be entitled to repeat performance or a price reduction.

If the service is not delivered within a reasonable time, then the consumer will be entitled to a price reduction.

Whilst the consumer now has a statutory right to these remedies in these circumstances, it does not mean they are excluded from seeking alternative remedies, for example damages, provided they do not attempt to double recover for the same loss.

The consumer is now, in effect, in a better position and will benefit from greater clarity on their rights.

Help Available from the Chartered Trading Standards Institute

Chartered Trading Standards Institute chief executive officer Leon Livermore said, “The Chartered Trading Standards Institute and trading standards officers are committed to working with businesses - small, medium, or large - to help them understand complicated legislation that impacts day-to-day operations. In preparation for the implementation of the Consumer Rights Act, CTSI has developed reference tools through its Business Companion website. The site helps business owners understand the Act and new or changing responsibilities specifically related to their business.'

You can access the tools mentioned here: http://www.businesscompanion.info/

In the meantime, if you are unsure of what you need to do to implement the new laws, you could speak to your bookkeepers who will be able to guide you on how the changes will start to take shape for your business.

New Regulations Affecting Building Developments with a Commercial Nature

If you are planning building or renovation works that have a commercial nature – and that includes developing or refurbishing property that you intend to let, or constructing an outbuilding for use as an office or commercial workshop for example – then you should read on.

The Construction (Design and Management) Regulations 2007 (CDM) became ‘CDM 2015’ on 6^th April 2015. The updated regulations see the introduction of numerous changes, most of them centred on health and safety.

In a nutshell, if you are planning renovations to a residential property that you intend to let to tenants or with a view to re-selling for financial gain, this will come under the banner of commercial development. And if you are planning the construction of an outbuilding in your garden to use as a home-based office, a workshop or a treatment room, this will also be considered commercial. In all these cases, the CDM regulations will apply to you.

The New Regulations Explained

Responsibility is the key change with the new regulations. Now, on all projects, the ‘client’ – the person ordering the works - will be responsible for everything, including the overseeing of health, safety and welfare. It is therefore vital that adequate competency checks are carried out ahead of hiring contractors, because you will be completely responsible for their work.

You will also have a number of other responsibilities. These are:

• The written appointment of a Principal Designer (PD). The PD will oversee the project design and planning and take care of all the health and safety procedures, including setting up and maintaining a health and safety file.
• The appointment of a Principal Contractor (PC). The PC will carry out the construction or renovation works and / or manage the onsite works.
• Ensuring health and safety is a featured part of the job and that there is adequate budget available to cover it.
• Supplying the PD with all the information required to oversee the PC in his task of writing a Construction Phase Health and Safety Plan.
• Reviewing and approving the Construction Phase Health and Safety Plan.
• Ensuring both PD and PC have adequate competence to carry out their respective roles.

If no PD or PC is appointed, you will assume responsibility for all their duties by default. As you can imagine, this would be a major task and you would be better advised seeking the right contractors who have suitable qualifications, experience, accreditations and references for the job in hand.

If you are planning construction or renovation works of a commercial nature and are not sure where to start with sourcing the right people or meeting your obligations under CDM 2015, you could start with a call to your bookkeepers who will point you in the right direction and help you get the ball rolling.

How to Avoid Late Payment and Prevent Cashflow Problems

Late payment is a much talked about subject and research published in 2014 proves what an increasing issues it is with 57 per cent of small businesses waiting more than 90 days for payment and 72 per cent waiting over 60 days.

Whilst late payment can lead to detrimental cashflow issues, a lot of companies take the decision to not pursue debtors too strongly, concerned about losing their business. But the thing is, staying in control of outstanding accounts with regular reminders is a good way to do business, and most customers will realise that you are simply doing what is necessary to keep afloat.

Chasing debts though should be considered a secondary measure. In fact, it is something that could be avoided for the most part by putting certain processes in place. Here are five such processes that could make all the difference to your business.

1. Get invoices out on time

Issuing invoices punctually, getting them to the right person and indicating any purchase order number or reference will help boost the processing time for your payment. Make sure your payment terms are clearly stated and that the goods or services provided are listed together with the name of the person who placed the order, so that there is no question over what was supplied, for whom, and what is owed.

2. Make written terms & conditions the rule

Make it a rule that you never start a project or supply goods without first obtaining written agreement to your terms and conditions, and to your pricing. Make sure the terms clearly state what is being supplied, the costs involved, and when payment is due. Don’t leave it till you send your invoice to provide terms: it’s too late by then.

3.   Be firm about credit checks

Unless you are demanding payment upfront, don’t do business with any new customer until you have carried out a credit check. Depending on the size of the job, you may wish to order paid-for credit searches, ask for bank or trade references or, at the very least, run a check on Companies House to see if there are any registered charges.

4. Look for Evidence of the Prompt Payment Code

The Prompt Payment Code is a voluntary code developed by the Department of Business, Innovation and Skills. It sets out a statement of commitment between a business and its suppliers concerning prompt payment. You may wish to maintain a policy that you only do business with customers who have signed up to this code.

If you are having difficulties with late payments, or would like assistance in putting measures in place in order to avoid them, your bookkeepers will prove a very useful resource.

Getting Your Business Ready for Summer

Summer is generally one of those times in the business calendar when requests for leave escalate. It can be a challenging time for any business owner and one for which planning ahead is essential so that you can be sure your operation continues as normal.

Currently, full time employees are entitled to 28 days of paid leave per year. Many of these employees will expect to be able to take their leave during the key holiday seasons – namely summer and Christmas – and in order to maintain high levels of staff morale, many business owners try to make provision to allow as many requests as possible to be honoured, often by shouldering the burden themselves.

However, this is not always going to be practical. It is therefore essential to plan ahead and develop policies on when leave can be taken that are fair to staff and at the same time maintain customer relations and turnover. Avoiding last minute emergencies is a key objective and the following advice should prove helpful in doing just that.

Identify Peaks and Troughs

The first thing to do is be clear on when your business tends to experience its busiest periods, and when it is generally quieter. Once you have identified your peaks and troughs you can set your leave policies around them. It may be that you have a policy that leave cannot be taken at certain times, unless there are extenuating circumstances. You may also wish to introduce a shutdown period during any particularly quiet interludes.

Plan for Seasonal Fluctuations

If your business experiences high demand during certain periods of the year, you may find it works better for you to employ a small core of staff on a permanent basis, and then take on short-term temporary workers to help you cope during the higher demand periods. Don’t forget though that agency workers are entitled to certain rights, including equal pay that falls in line with permanent employees, once they’ve been with you for 12 weeks or more.

Cross Train to be Ready for the Unexpected

There is nothing like being prepared, and having multi-skilled staff on your team is an excellent way to be ready to tackle any ‘emergency’ situation. Say for example your business experiences an unexpected boom period, and this coincides with a time when you have agreed to a number of leave requests. If you have cross-trained and cross-skilled your workforce, then anyone will be able to step in to help as required.

If you are thinking about how you will cope this summer as the many requests start to come in for leave, why not speak to your bookkeepers? They’ll be able to help you plan ahead based on historical peaks and troughs, and will also assist with cashflow forecasts so you can work out how taking on any additional temporary labour will affect your bottom line.