Getting it Right with Subject Access Rights

At any given time an employee can ask to see any personal data that their employer holds on them. This is known as a ‘subject access request’, and when it happens employers need to tread very carefully.

Subject access requests are a powerful tool for a disgruntled employee and can cost a business both time and money. They also have the potential to open a can of worms in terms of the documents that they uncover, which could prompt an employer to settle a dispute unnecessarily. It’s important therefore to be well informed when it comes to an employee’s subject access rights.

Employee Rights on Subject Access Requests

Under s.7 of the Data Protection Act 1998, employees have the right to make a subject access request to ask for copies of the personal data their employee holds on them. They also have the right to receive information on how that data is stored and processed.

The Subject Access Rights Checklist

There is a set procedure that employers must follow when dealing with subject access requests:

1. Check that the subject access request has been made correctly and that the £10 fee has been paid and received, as the timeframe for responding does not start until this point. This could therefore buy you some valuable extra time.
2. Deal with the request as soon as possible. It’s a time consuming process, and you’ll need to remember to build in time for your legal team to review the request, and consider whether there is any third-party personal data which will need to be redacted.
3. An employer has the right to narrow the focus of a data search where the request for data is particularly wide. For any electronically stored data, it is important to agree a time frame for the search, as well as agreeing search terms with the employee.
4. Consider using document management systems or litigation support if there is likely to be a large volume of data.
5. If you are conducting settlement discussions with your employee, try to reach an agreement with them that subject access requests will be put on hold until all discussions are concluded. If discussions break down, try to extend the deadline for the search with the employee.
6. Make sure the subject access request is with withdrawn if a settlement is agreed.
7. Remember that the normal rules of privilege apply and any documentation created for the purpose of legal advice or because litigation is being contemplated should be excluded.
8. Think about providing the documents electronically rather than in a hard copy format, as this will save you both time and money.

2018 Changes to the Law Surrounding Subject Access Requests

Having said all of this, the law is set to change in 2018, and employers may need to rethink how they deal with Subject Access Requests. The General Data Protection Regulation (GDPR) will require employers to respond to Subject Access Requests in a shorter timeframe than that which currently applies under UK data protection laws.

This is why it’s so important to follow a defined process for handling subject access requests, such as that outlined in the checklist above. Failure to meet the deadline could result in a significant fine under the new regulation.

Look out for further updates from Office Assistants on how GDPR will affect subject access requests and be sure to consult your legal advisers when handling any form of request, no matter what the circumstances.

What VAT Registered Businesses Need to Know About the 2017 Flat Rate Scheme Changes

The VAT Flat Rate Scheme was introduced over a decade ago to make paying VAT easier for small businesses by removing the complex need for record keeping.

However, from 1^st April this year, the government is setting the Flat Rate at 16.5 per cent for all limited costs traders. These are businesses which predominantly charge for a service that they provide rather than selling products. This will squeeze the tax relief for a variety of small businesses that currently enjoy lower rates depending on the nature of the services they provide.

The Changes

In the 2016 Autumn Statement, Chancellor Philip Hammond announced the changes to the Flat Rate Scheme which will affect those businesses with a very low cost base. These businesses will now be called ‘limited cost traders’.

The current rates depend on business type and can vary from as little as 6.5 per cent for the farming industry through to a standard 14.5 per cent for firms such as IT consultants or bookkeepers.

The Flat Rate Scheme was originally designed to give low-overhead micro companies some tax relief, but the government is concerned that bigger firms are manipulating their accounts to make it look as if they have a turnover below the £150,000 threshold so as to qualify for the scheme.

Who will be Affected?

The Flat Rate Scheme can still be used, but the percentage will be increased to 16.5 per cent for limited cost traders.

If your business is currently on the Flat Rate Scheme and you are unsure as to whether you will be affected, the government has stated that before the changes come into play, it will introduce a simple online test and calculator to enable current and future users of the scheme to work out whether they need to change to the new rate.

It is estimated, however, that approximately 4,000 businesses will be better off by switching to the standard form of VAT accounting.

If you are baffled by whether the latest changes will affect you and what the best course of action might be for your particular business, why not discuss the matter with your local bookkeepers? They’ll be armed with all the answers you need and will no doubt have solutions to make sure you are saving as much as possible where any form of tax is concerned.

The Apprenticeship Levy Explained

Later on this year, large organisations will be subject an Apprenticeship Levy as the government changes legislation surrounding apprenticeships. Although it will mainly be large employers that are affected by the levy, there may well be some effect on small businesses too.

So what do you need to know? Here we explain what the apprenticeship levy is, when it comes into effect and who will be affected by it.

What is the Apprenticeship Levy?

The Apprenticeship Levy is a charge payable to HMRC via PAYE returns which will be applied to large employers in both the public and private sectors. Once the new legislation comes into force, employers that pay into the levy can also use it to fund apprentice training within their businesses.

The idea behind the levy is that it will encourage employers to invest in apprenticeship schemes, as well as raise additional funds to help improve the quality and quantity of apprenticeships.

Who will be Subject to the Levy?

The threshold for the levy will depend on the size of a business’ payroll. Those businesses with a wage bill of over £3 million will be required to pay the charge. Therefore, as the levy will only apply to 2% of all employers, only larger SMEs will be affected.

If a company is over the payroll threshold, it will have to pay 0.5% of its payroll into the levy. With that, every employer will receive an allowance of £15,000 to offset against what they owe. This is why the levy is only being charged to those companies with a payroll larger than £3 million, as it means the £15,000 allowance could potentially offset the entire amount owed.

When does the Apprenticeship Levy come into force?

The levy comes into effect on 1^st April 2017, and is payable via PAYE. There has been a mixed response from businesses towards the levy. Some are worried that larger businesses will have to fund extra apprenticeships over their £15,000 allowance themselves. Others are welcoming the levy as a way to improve the quality of apprenticeship schemes.

If you’re worried about the effect of the apprenticeship levy on your business, why not take some advice from professionals? Your local bookkeepers will be able to help you navigate through the new legislation.