How to Protect Your Business Against Cyber Attacks

The worldwide cyber-attack that brought the NHS to its knees recently has definitely reiterated the threats faced by businesses working in the modern digital environment.

The much publicised attack made use of hacking tools to spread ransomware known as ‘WannaCry’. Not only did it affect the NHS, but also global shipping outfit FedEx as well as more than 300,000 computers over 150 countries. Cybersecurity company F-Secure described it as ‘the biggest ransomware outbreak in history’.

WannaCry made its way in through emails that had been designed to trick the recipient into opening attachments primed to release malware onto their system. Affected computers locked up files and encrypted them, making them inaccessible to users unless they made a payment using bitcoin. The trouble was, even if payment was forthcoming, there was no real guarantee that access would be restored.

Microsoft released a patch in March this year to fix a vulnerability that WannaCry exploited. However, not everyone installs updates as soon as they become available, which left the vulnerability exposed.

When it came to casualties of the attack, the NHS came off worst. Hospitals and GP surgeries nationwide fell into chaos with patient systems and medical records inaccessible. Other victims included FedEx, Portugal Telecom and Spain’s Telefonica together with German railway Deutsche Bahn.

How to Protect Against Cyber Attacks

It is essential to make sure all software is kept updated. The updates that are made available usually incorporate security patches, which means ignoring them or putting them off is very risky.

Vigilance with emails is also crucial. Looking out for suspicious messages that contain links or attachments should be the norm right across the organisation, with strict parameters set as to what to do and what not to do. As well as employees, make sure outsourced staff and subcontractors are aware of your rules about links and attachments in emails and that they know the risks of downloading programs, apps and software from unofficial or non-secured sources.

Dealing with Cyber Attack Risks

Cyber risk insurance is an astute choice for any business. It is designed to restore an organisation to its complete operational status as quickly as possible following an attack.

Cyber risk insurance covers the policy holder for malicious attacks, cyber extortion, denial of service and human-error data breaches. Depending on the small print, it can provide legal guidance, business interruption cover, public relations advice, IT forensics, data restoration and cover for lost profits.

Hackers are finding new inroads on a daily basis. Make sure your business is safe and covered for this very real risk. If you need practical advice, you can always talk to your local bookkeepers.

Digital Signatures Now Permissible by law

The process of obtaining written signatures on contracts has long been a serious challenge for businesses in the B2B sector. It can lead to lowered productivity, difficulties in closing deals and delayed projects.

Electronic signatures have been used for many years, but they have long been questioned from a legal point of view, which has led business owners to put off relying on them.

The good news is, however, that in 2016, a significant milestone came about concerning the adoption of e-signatures. The new Regulation on Electronic Identification and Trust Services for Electronic Transactions in the Internal Market (eiDAS) was law as of July, and at the same time, The Law Society and The City of London Law Society published a practice note, endorsing the use of e-signatures.

Running a business in this day and age makes you fully aware of how going digital can bring numerous advantages across all manner of elements of your operation. But when it comes to digital signatures, you could well have found yourself frustrated, especially as the legality of these signatures has been less than clear. The e-Signature Directive has been around since 2000, however the fact that individual EU member states have been able to decide for themselves as to how it could be implemented nationally meant inconsistencies were rife.

The new practice note has, thankfully, brought with it a much more clarified understanding of the legal requirements when it comes to using electronic signatures, which means they are now legally sound for use in contracts under English law.

The Benefits of Electronic Signatures

The electronic signature delivers a host of advantages including efficiency and cost savings. Manually signed documents mean printing, scanning and posting, but none of this is necessary with the e-signature. Contracts get signed far more quickly, which means far fewer delays in getting deals closed and projects commenced.

Another benefit is that electronic signatures leave a digital audit trail which makes it easier to remedy disputes. Digital signature platforms like DocuSign and HelloSign allow the verification of the signatory, giving details of who signed the document, when and where. These audit trails mean businesses can demonstrate any necessary compliance with regulatory parameters and data protection legislation. The audit trails are also legally admissible under the Electronic Communications Act 2000.

Electronic signature platforms also deliver secure cloud storage for all documentation, and providing they are certified to ISO 27001, they will ensure you are conforming to security management standards.

‘Digital signatures’ are an advanced type of electronic signature, noted by the Regulation as ‘qualified electronic signatures’. This type of electronic signature is supported by a digital certificate courtesy of the platform provider which verifies the identity of the signatory. Digital signatures are preferred by sectors such as banking, as the added security and advanced level of identity checking are most important in these areas.

If you are thinking about using e-Signatures for your business contracts but are not sure about whether they will be legally binding, why not contact your local bookkeepers for advice?

New Inheritance Tax Allowance Sparks Good News for Direct Descendants

On 6^th April 2017, amendments were made to inheritance tax law courtesy of the new ‘residence nil rate inheritance tax break’ came into operation.

The new ‘nil rate band’ applies where a residence passes to a direct descendent. This means a child, grandchild or great-grandchild, etc. including an adopted child, foster child or step-child. Where direct descendants are inheriting an estate incorporating a main residence and the total value of the estate exceeds the IHT threshold of £325,000, they should now pay a lower amount of inheritance tax.

Previously, all beneficiaries, including direct descendants, would have to pay 40 per cent tax on anything inherited that exceeded £325,000. However now direct descendants get additional tax relief via the nil rate band which provides a top-up of £100,000 per person during 2017-2018. This will rise to £125,000 during 2018-2019 and then increase again to £150,000 during 2019-2020. £175,000 will be the top up once we get to 2020-2021, and then consumer price inflation (CPI) will take over how the figure rises over the years that follow.

In a nutshell, this means that by 2020, direct descendants of couples leaving an estate valued at less than £1 million will have no inheritance tax to pay at all.

Transfers and Tapering

The nil rate band is transferable by means of a claim to a surviving spouse or civil partner when not used. If the deceased had downsized or ceased to own a home on or after 8 July 2015, then descendants can claim to use the nil rate band if they inherit a residence or assets to the same value up to the limit of the nil rate band.

For estates that exceed £2 million and above, a tapering rule applies. It works by tapering away the additional nil rate band by £1 for every £2 over £2 million. So if an estate is worth more than £2.2 million, then the £325,000 IHT threshold will apply.

Main residences held in discretionary trusts will not usually form part of the estate and the nil rate band will not therefore apply, even if the property is being left to direct descendants.

Time to Review Your Will?

It is quite a complex set of rules and even lawyers concur that the conditions are highly complicated and need a good degree of understanding so that they can be made to work in the most effective way for particular situations.

If you are leaving your estate to direct descendants, you should most certainly be reviewing your will in light of the new nil rate band. Making a will is especially important if you are a business owner, so be sure to consult with a solicitor if you have not yet made one, or need to update the one you have.