GDPR and Email Marketing

GDPR is big news at this present time. We recently covered the General Data Protection Regulation, setting out the three key areas in which businesses of all sizes and types that do business with any EU based consumer will need to ensure compliance.

One of these key areas was consent. If you regularly send email newsletters or updates to a contact list that resides within the EU, then you are going to need to follow a number of steps to make sure you are not breaching the new Regulation. Remember, a breach could cost you literally millions of pounds.

Email Marketing Requires Opt-In Consent Under GDPR

Under GDPR, businesses can only send emails to those who have opted in to receive them. Whilst the current EU Privacy Directive already requires this in the majority of EU countries, the difference under GDPR is the nature of the consent. 

Consent must never be compulsory or hidden; it must be active (opt-in only); you must have separate requests for each type of contact; it has to be clear who is requesting the consent, and the consent must be easy to withdraw. 

You cannot assume that it is permissible to send marketing materials to contacts who do not request NOT to be contacted.

Why are you Collecting Data?

Your reason for collecting data must also be made clear, and you must set out how it will be used. Again this needs to be a positive action (opt-in) rather than a negative opt-out action.

For example, saying something like, “Office Assistants will use your personal details and record your purchase habits so we can provide you with appropriate offers in the future. If you would prefer for us not to do this, please tick here.” This would be non-permissible under GDPR because you are asking for an opt-out rather than an opt-in.

“Please tick the box to confirm you are happy for us to do this” is the right way to obtain consent as this is a positive action.

 Every time you collect an email address you will need to run this procedure. It doesn’t matter whether it’s a web sign-up form, a postal mailshot, an exhibition or anything else, you MUST obtain consent to send marketing materials. Under GDPR you cannot collect, store or use email addresses without consent.

Record Keeping is Essential

You will also need to keep records of all consents collected because if compliance is questioned, you will need them as evidence. This could be done by keeping copies of sign-up forms or taking screen shops of web pages or apps where consent boxes were ticked.

GDPR will apply to all data captured both before and after the introduction of the Regulation on 25^th May 2018. This means that any current mailing list you have will need to be refreshed. In other words, you will need to request consent from every person on your existing mailing list.

When to Plan for GDPR?

The best time to do this is NOW. If you leave it until the last minute, your consent request email will be lost in the midst of everyone else’s who is undertaking the same exercise. It may also be necessary to send a series of requests in case there is a lack of response in the first instance. Give yourself time otherwise you could find yourself with an unusable mailing list come May next year.

If you are in any way unsure as to how GDPR will affect your business, why not speak to your local bookkeepers?

An Employer's Guide to Christmas

Christmas time is filled with doubts and concerns for the employer who tends to spend much of his or her time during the festive season run-up dealing with all sorts of issues such as annual leave requests, overtime grievances and disciplinary issues.

 

Now is a good time to prepare for the challenges that lie ahead and to help you we’ve summarised five of the most common problems faced by employers at this time of year, together with advice on how to deal with them.

1.     Social Events

 

Employers have a duty of care towards their workforce and the Equality Act makes employers liable for acts of harassment, victimisation and discrimination during the course of employment, although if evidence can be provided that reasonable steps were taken to prevent such acts then it may be possible to avert any action.

Action to take: ensure you have a set policy on workplace social events and evidence that it is enforced.

2.     Overtime

Providing your contracts of employment incorporate clauses that require employees to work overtime as and when required, then you can expect your staff to agree to overtime over the festive period. If they refuse then you will usually be within your rights to discipline them.

Action to take: check your contracts to ensure you have stipulated that your workers must undertake overtime during busy periods before attempting to enforce it.

3.     Annual Leave Requests

Many employees have a desire to take holidays during the festive period so they can spend time with their families. However, unless there is a contractual agreement, they are not within their rights to insist upon it and must provide notice equal to twice the length of the leave they are looking to take.

Employers are then able to put a counter notice forward stating that the leave has been refused, providing the counter notice matches the length of the leave requested and the staff member is not being prevented from taking leave they are entitled to within that holiday year. You’ll need to present valid reasons if you want to refuse an employee who has enough leave accrued and who has given reasonable notice.

Action to take: be clear on the annual leave allowances and policies you have incorporated into your workers’ contracts. Never refuse leave without valid reason.

4.     Late to Work

It is not uncommon for workers to turn up late the next day following the annual Christmas party. But what is the employer’s position?

Employers have a right to make deductions from workers’ pay if they are late to work, providing there is a clause in the employment contract allowing them to make deductions from wages for unauthorised absence.

Action to take: make sure your employment contracts include such a clause, and that your disciplinary policy states that non-attendance following any form of staff event could lead to disciplinary action.

5.     Annual Leave Requirements

For some businesses, the Christmas and New Year period is the ideal time to shut down and many employers require workers to reserve annual leave to take at this time of year.

As long as it is stipulated in the contract of employment, employers are able to stipulate when leave should be taken.

Action to take: ensure your contracts of employment and holiday policy stipulate any particular requirements you have concerning the need for staff to reserve a certain amount of their annual leave to cover the Christmas and New Year shut down period.

If you are in any way concerned about dealing with staff issues over the festive period, why not talk to your bookkeepers in the first instance? They’ll be able to set you straight on the key rules and, if necessary, refer you on for legal advice.

Autumn Budget 2017 Key Announcements for Small Businesses

For the small business owner there was a fair amount to digest following Chancellor Philip Hammond’s first Autumn Budget on 22 November. Here we provide an at-a-glance summary of the key points.

VAT Threshold

There were murmurings of a potential change to the VAT threshold, but this has remained at £85,000 for at least the next two years, most likely due to heavy opposition from small business organisations. The news has been welcomed by bodies such as the Federation of Small Businesses (FSB), which have been campaigning on the subject of VAT reform for some time, arguing that it has the potential to drain the resources of the smaller business. The stay could however be just a temporary measure, with a rumoured overhaul to the VAT system coming in 2020.

Business Rates

From April 2018 the Retail Price Index (RPI) will be replaced with the Consumer Price Index (CPI) with the CPI being used to calculate business rates. This should in practice save businesses quite significantly, with collective savings reckoned to be in the region of £2.3 billion over three years.

Staircase tax was abolished with a promise to business owners affected by it since it was introduced that their original rates bills would be reinstated. There was also an announcement that following the next business rates revaluation in 2022, such revaluations will take place every three years rather than every five years.

Tax-Free Personal Allowance

The personal allowance has increased from £11,500 to £11,850 per year. This will result in an overall tax reduction in 2018/2019 of £1,075.

Research & Development Tax Relief

Small businesses that conduct research and development and claim the RDEC standalone tax credit will benefit from further tax relief measures. The rate will increase from 11 per cent to 12 per cent of a firm’s qualifying research and development expenditure.

British Business Bank Boost

The British Business Bank (BBB) has been given a funding boost of £2.5 billion. This comes as part of a larger £20 billion Patient Capital investment designed to assist fast-growing businesses in scaling-up. The funding has the objective of encouraging more long term investment in scale-up businesses carrying a greater risk. It’s the biggest government commitment to date to the BBB.

National Living Wage

 The National Living Wage (NLW) paid to workers aged 25 plus will increase to £7.83 from £7.50 per hour, resulting in a £600 per year increase.

Partnership Tax

Legislation has been updated to fall in line with commercial arrangements for allocating profit shares with the objective of avoiding additional administrative burdens for taxpayers. The changes will come into effect as of the tax year 2018-2019.

Marriage Allowance

The Marriage Allowance – the amount of unused personal tax allowance that can be transferred between spouses or civil partners - will increase to £1,185 as of April 2018. Marriage allowance claims are now allowable on behalf of deceased spouses and civil partners as of 29 November 2017.

If you have any queries or concerns about the changes brought in by the latest Budget, why not discuss them with your local bookkeepers?

 

Key Ruling in the Long Running Self Employed or Employed Argument

Is your workforce employed or self-employed? The recent high profile case involving Uber drivers may well have connotations for other employers operating businesses on a similar basis.

The question as to whether your workforce or parts of it is classed as employed or self-employed has been a source of contention between businesses and HMRC for many years.

The issue of employment status is considered serious by HMRC, which is keen to get to the bottom of whether claims by business owners that its workforce is self-employed are genuine. If workers are deemed to be employed rather than employed, then the business owner is liable for making tax and National Insurance contributions. Obviously HMRC is eager to ensure it is receiving all the contributions it should.

Uber Judgement: Drivers ARE Workers

Just in the past few days and in one of the most high profile cases of its kind, the Employment Appeal Tribunal (EAT) has confirmed that drivers for the well-known taxi firm Uber should be classed as workers who are entitled to basic employment rights.

It was the Uber drivers who argued that they should be classed as workers. In Aslam and others v Uber BV and others, the Employment Tribunal held that the drivers are entitled to receive paid annual leave and to earn the National Minimum Wage, amongst other benefits.

Numerous factors played a part in the ruling. Whilst Uber drivers are able to make their own choice as to where and when they work, they are subject to an interview and induction process and can be dropped if they fail to perform or are found guilty of serious misconduct, following a set warning process.

The drivers however have to work exclusively for Uber, which is a key indicator in establishing whether a relationship is employment based.

There have been other high profile cases in the past, for example Addison Lee, which met with the same ruling as Uber. Deliveroo and CitySprint came under similar scrutiny.

What Now for the Gig Economy?

The gig economy – the blanket name for the type of working arrangement that these companies follow – has in the past involved numerous companies attempting to shroud their workforce arrangements undercover of a self-employment basis. However, courts and tribunals have recently uncovered the fact that they are in fact employment based agreements.

The recent Uber ruling will have far reaching connotations for its 40,000 or so strong workforce. It is thought that many of the drivers will seek to make back-dated claims for minimum earnings, holiday pay and other such benefits that they should have been entitled to since they were taken on.

TUC general secretary Frances O’Grady said: “This ruling should put gig economy employers on notice. Unions will expose nasty schemes that try and cheat workers out of the minimum wage and holiday pay. Sham self-employment exploits people and scams the taxman.” 

Be Sure to Check the Employment Status of Your Workforce

It is crucial for business owners to be clear on how their relationships with their workforces will be construed by HMRC.

If you are unsure as to whether your workforce should be classed as employed or self-employed, discuss it with your local bookkeepers. They’ll advise you as to the correct status so that you can take appropriate steps to ensure your business is risk free in this respect.

The Importance of Getting Your Buildings Reinstatement Value Right

The property from which you operate your business is obviously of vital importance. What would you do if it was completely wiped out? No doubt you’d rely on your buildings insurance to cover you for full reinstatement.

If this is the case, then you’ll need to check something vitally important: that your buildings reinstatement value has been quoted correctly on your insurance policy. If it hasn’t then you won’t be adequately covered, which means you won’t be paid the amount you need to get your premises back to where it was or to cover your incurred costs during its rebuild.

One of the most common mistakes made when insuring commercial premises is with the reinstatement value. A lot of people believe that the reinstatement value, also known as the ‘Declared Value’ or rebuild value, tallies with the current market value of the property. This is not the case however.

What is Reinstatement Value?

Reinstatement value refers to how much it would cost to completely rebuild a property from scratch. As well as the actual rebuild itself, the value will include other factors such as site clearance, debris removal and professional fees for surveyors and architects.

If you get the reinstatement value wrong then you could end up underinsured, which means your insurer will only pay out a proportion of the total rebuild cost, and that will be directly connected to the amount by which you are underinsured.

So for example, you have insured your commercial property at a Declared Value of £100,000. The actual rebuild cost runs to £300,000 however. The insurer will only pay out a third of any claim you make.

It is therefore a false economy to declare a lower rebuild cost, even if it appears tempting in order to keep the premium down.

How to Calculate the Correct Reinstatement Value

You can obtain a reasonably accurate reinstatement value from a recent mortgage offer. However, the most accurate figure and perhaps the only 100 per cent guaranteed one will come from a qualified buildings surveyor’s report. Their report will follow a detailed inspection and will therefore be completely accurate, as well as being something you can totally rely upon.

Bear in mind that reinstatement values should be regularly reviewed, as costs do rise.

The good thing about investing in a professionally calculated reinstatement value is that it could well uncover the fact that you are paying more than you should be for your buildings insurance.

GDPR Essentials for Businesses

Back in August we wrote about how a new Data Protection Bill was set to be published in September this year which would bring the EU’s General Data Protection Regulation (GDPR) into UK law.

GDPR is now officially due to come into force on 25^th May 2018 and will mark the most wide-ranging change to global privacy law in two decades.

GDPR will apply to any organisation that provides goods or services to or tracks or creates profiles of EU citizens. Brexit won’t stop its introduction, especially as until March 2019 we remain part of the EU, but in any case it is widely believed that the UK will adopt its own legislation that will incorporate the GDPR legislation.

GDPR should in theory make the business owner’s life easier because there will be clarity as to how they should be controlling data. There are all sorts of new rules that must be followed, with failure to do so resulting in substantial fines that could reach €20 million or four per cent of group global turnover.

How to be GDPR Compliant

As a business, there are three key areas in which you’re going to need to ensure you are compliant.

Consent

Anyone you wish to contact for marketing purposes must have opted in to receive communications from you via a ‘clear, affirmative action’. You are no longer permitted to use pre-ticked boxes hidden away at the end of a form or terms and conditions. Neither can any wording that relates to receiving marketing communications be ambiguous or unclear. Opt-outs are no longer allowed; GDPR heralds the age of the opt-in. It’s going to be necessary to cleanse existing mailing lists so that everyone opts in under the new rules, otherwise you will no longer be able to contact them after May 2018.

Right to be forgotten

You can no longer keep data for any longer than you need to, and for anything other than its intended purposes. Data must not be kept indefinitely and any EU citizen will retain the right to request that their data is removed where no legitimate reason exists to process it.

Personal data processing

Data can no longer be held just for the sake of it. A legitimate reason must exist for you to have brought data together. You must also have a clear reason concerning what you intend to do with the data and for how long you will need to use it. You’ll need to be upfront with consumers as to this information.

Time to get ready for GDPR

There is no time to waste in preparing for GDPR. Whilst it may seem a long way off, the fact is there is a lot to do, and if you haven’t ensured that everything is in place by the deadline of 25^th May 2018, then you could be at risk of non-compliance fines.

If you have mailing lists that need to be opted in, you should not leave this to the last minute as consumers could well end up fed up with the bombardment of email requests by this time, which could lead to wholesale deletion.

There is useful guidance on the Information Commissioner’s Office website as to how you’ll need to comply with GDPR. You could also talk to your local bookkeepers for tailored advice on the various aspects that apply to your particular business.

Why Employers Need to Beware of Vicarious Liability

Employers insure their own risks, covering themselves for actions they take that may lead to a claim for compensation. But what about the actions of their employees or third parties, where does an employer stand should a claim be made against them for something someone else has done?

Vicarious liability is the situation where employers could be liable to pay damages where someone who works for them, either employed or outsourced, causes losses or personal injury to another through actions taken during the course of their duties.

Because the extent of the liability can be far-reaching, vicarious liability puts employers in a very vulnerable position indeed.

Two cases in point

There was a case reported recently involved Barclays Bank, where various claimants put in a complaint about being sexually assaulted by a doctor engaged by the bank to undertake medical examinations on prospective employees. The employees won the case, finding Barclays liable. There was also a similar case last year involved Morrison Supermarkets plc. A customer of one of their petrol stations accused a worker of racial abuse and physical violence, and the supermarket was found liable for the worker’s actions.

Of course, neither Barclays nor Morrisons had condoned or encouraged the behaviour, but because the courts ruled that the assaults were so closely related to the jobs of the assailants, the businesses had to be found liable.

Both cases clearly demonstrate how a business can be liable for the actions of its employees and third party contractors, despite the fact the business would have found it pretty much impossible to prevent the actions and also despite the fact that the actions fell outside the scope of the conduct that would have been reasonably expected.

How to reduce the risk of vicarious liability?

In vicarious liability cases involving discrimination, employers can attempt to avoid liability by demonstrating that it has taken all practicable steps to prevent the discrimination taking place.

However, in cases involving personal injury, this defence is not available. Employers should therefore place their focus on prevention rather than defence. But how to do this?

Firstly, start with your policies. Ensure they include very clear rules on conduct, equal opportunities, health and safety and grievance and disciplinary issues. Be sure to enforce the rules, and instigate training to ensure that they are fully understood.

You should give consideration to which of your policies should apply to third parties and contractors.

Individual roles should be closely defined and of course, adequate supervision and monitoring should be in place.

Of course, you will never be able to fully protect your business from the actions of another person, which is why you should put appropriate structures in place to enable you to deal with any liability and its financial implications. These structures could include, for example, extended insurance that covers vicarious liability, and indemnities within contractor and supplier contracts.

Vicarious liability isn’t an incredibly widespread problem, however it does exist and carries with it potentially damaging financial and reputation related risks, so it is vital to be prepared.

How to Get Your New Business Off the Ground

Had an idea for a business? All businesses start with an idea, but you need to take the next step and transform that idea into something tangible.

It’s at this stage that you may start to feel overwhelmed and lost at sea. However, it’s not actually as challenging as you might think, especially if you break the overall task list into smaller, bite-size chunks that you find more manageable.

The following advice should help you segregate the process and get moving with your business idea.

Draft a Short Business Plan

Before you start groaning at the thought of putting a lengthy plan together, you needn’t worry because all you really need is a one or two page document with the aim of getting straight on what resources, time and budget you are going to need to get you up and running and trading safely for the first year.

The early stages are all about road testing your ideas, so it’s definitely not worth spending too much time on your business plan. Having said that however, you do need a structure to follow and defining your vision, mission and objectives is vital, as is putting together a basic action plan including outline strategies.

Set a Budget

No business should get off the ground without a budget set out for starting up, operating and marketing. You’ll need to be realistic and allow a contingency for unexpected costs.

You’ll need to work out how much you are spending each month so you can see how long you can continue to operate without turning a profit – that’s how long you’ll have to start making it work. Ideally you’ll want to start earning profit wise within one to three months, but do try to keep a contingency fund untouched so that you have a reserve should things not go quite to plan.

Work out a Legal Structure

Whether you start up as a sole trader, a partnership or a limited company must be given due consideration. Talk to a local bookkeeper or accountant for tailored advice, as the advantages and disadvantages of each option will vary. There will be administrative and financial accountability differences to think about, together with risk considerations, so be sure to consider all your alternatives carefully. If you are setting up with partners, then you must have a partnership agreement in place to protect all your interests, regardless of how sound you believe your relationships are.

Start Marketing Early

Even whilst you are still in the set-up phases, you can start getting organised with your marketing. You’ll need a website and online presence and this can take some time to pull together. At very least be sure to secure your domains both for your website and social platform, so you know you’ve got them. You can also start networking early on and spreading the word about what your new venture has to offer.

Take Professional Advice

It’s important to take professional advice when setting up a business. Financial advice, legal advice and, if you need it, business development advice. Listen to those who’ve done it before; ask for advice online on business forums; talk to people at networking events; read, read and read more. The more support and knowledge you have, the better chance you will have of success.

Good luck! And if you could use some guidance from a team of experienced bookkeepers, please get in touch!

Autumn Budget 2017 Predictions

The Autumn Budget of 2017 is set to take place on Wednesday November 22, with the major annual financial update by Chancellor Philip Hammond switching from the spring.

Here we take a look at what is potentially on the cards.

Stamp Duty

There has been talk for some time that Stamp Duty is putting off potential home buyers and movers and therefore putting pressure on the housing market in the UK. Whereas Stamp Duty income has reached a record high, home sales have taken a dive. There are therefore calls being made on the Government to remove Stamp Duty altogether for older homeowners, with the aim of encouraging downsizing so that larger family homes are freed up for younger families.

Homebuilder McCarthy & Stone has recently conducted research revealing that pensioners would be more inclined to make a move to a smaller property if there was no Stamp Duty to pay. It is also thought that Stamp Duty has brought higher value sales to a halt, creating a knock-on effect throughout the remainder of the market.

Nick Leeming is Chairman of Jackson-Stops. He said: "Philip Hammond must view the property market through the eye of the homeowner and come up with a solution in the Autumn Budget.

"If they were to take steps to reform the impact stamp duty has on the top end of the market, even just marginally, they would not only see their revenue dramatically increase but it would also get the market moving again at all levels.”

Alternatively, the liability for the tax could be switched from buyers to sellers, suggests the AAT (Association of Accounting Technicians). The AAT says this would boost mobility at all levels, because people on their way up the ladder would be paying duty on the lower-priced house that they are selling rather than the one they are buying. They say it would also give more first time buyers a leg up onto the property ladder, whilst keeping the Treasury’s income intact.

Phil Hall, head of public affairs and policy for AAT said: “It’s widely accepted that Stamp Duty adds a burden to any homeowners seeking to move - especially first-time buyers - because they must pay the tax as an immediate upfront cost together with finding a deposit, surveyors and solicitors fees and so on.

"This stunts mobility, impacting on employment and productivity as well as reducing the supply of new homes, which adds to the affordability crisis.

"Switching liability to the seller would be a relatively simple way of solving these problems.”

Pensions

It is thought that pension tax relief may be under threat. The current system links relief to the income tax rate of a saver. This means that tax payers in the higher rate band enjoy a 40 per cent relief rate, whilst those on basic ate get 20 per cent.

There is talk of a flat rate of 33 per cent, which means earners in the middle band would be hit harder. Pensions director at Aegon, Steven Cameron, feels that tax relief should not be changed until Brexit is done and dusted however, so that savers have some security for the future. He says that consideration should be given to combining pension and stamp duty policies instead.

"Reducing stamp duty would encourage pensioners to downsize, freeing up family homes with benefits across the housing market while boosting funds to pay for retirement," he suggested.

It remains to be seen of course what will actually transpire on 22 November, but rest assured we’ll be reporting it right here, so keep us bookmarked.

To Sit, or to Stand – Modern Working Methods Examined

Sitting at a desk for hours on end has never been considered conducive to healthy working, but what is the alternative?

Well according to CIS Products, UK employees could benefit from standing desks and anti-fatigue mats.

Working days are getting longer and breaks are getting shorter. Sitting down for hours without much movement can have a negative effect on health. It can lead to cardiovascular issues as well as diabetes. A British study undertaken in 1953 revealed that sitting continuously could contribute to health problems and more recent research from 2011 demonstrated that a 112 per cent increase resulted in the risk of diabetes and a 147 per cent increase in cardiovascular events were apparent between the shortest and longest sedentary periods.

So is it time for employers to start considering alternatives? In Scandinavia, sit-stand desks are commonplace, with more than 90 per cent of PC-using office personnel making use of them. The benefits are said to be manifold.

The Benefits of Sit-Stand Desks

Sit-stand desks offer flexibility. Employees can choose their preferred working posture depending on how they are feeling at the time. They can divide their working hours between sitting and standing, without risking injury or ill health through poor posture because their PC and documents are equally and perfectly accessible however they decide to work.

The good thing about sit-stand desks is that they do not cover any more of any area than regular desks. They provide employers with the opportunity to promote healthier working practices, and a healthier workforce means reduced sickness absence and boosted productivity.

Employers can choose from electric, gas lift or manual crank desks depending on budget and preference.

Employee Sit-Stand Education

It should be considered that standing for long periods of time is probably just as unhealthy as sitting and could lead to issues such as back, neck and hip pain as well as swollen legs and vein problems due to pressures on the circulatory system. A balance is ideal, and this should be promoted through employee education.

Employees should therefore be advised to vary their sitting and standing periods as well as taking regular breaks away from their workstations and using a standing desk mat.

Standing Desk Mats

Standing desk mats have built-in anti-fatigue properties. They are made from high-density foam designed to support and cushion the user and encourage regular movement of the feet. Such movement helps activate the pumping of the veins which in turn boosts blood flow and alleviates the pain normally associated with standing for long periods.

If you are considering ways of boosting employee health and comfort, it’s well worth having a look at sit-stand desks.

Beware the Employee Private Admin Cyber Security Risk

As we’ve discussed in previous articles, cyber security is a major issue for any business of any size, and this includes even the smallest, home-run operations.

It is a much discussed fact that one of the greatest threats to data security is the human factor, rather than technology. Whilst you may invest heavily in firewalls and virus protection, cyber-attacks so often come down to human error.

It is said that employees using company networks to carry out private admin is one of the most significant risks, and employers need to realise just how serious this risk could be.

82 Per Cent of Employees Undertake Life Admin in Work Time

We spend a great deal of time at work without a doubt, so it stands to reason that at some point we are going to have a need to undertake some form of personal task. ‘Life admin’ as it’s referred to is a necessity, and if we’re at work for the majority of our day, then some of that admin time is going to occur within working hours. But it’s the making use of company technology to carry out this admin that’s the issue.

Research by Altodigital reveals that 82 per cent of full time UK employees spend a certain amount of time carrying out personal admin tasks whilst at work, and that more time is spent on these tasks during work time than within lunch breaks.

The most common personal tasks include organising finances, booking health and beauty appointments, dealing with bills, and seeking alternative employment. Whilst some of these tasks may seem acceptable and necessary, the security risks that go with them really must be considered. The worrying thing is, four in ten of those questioned for the survey did not feel there were any security risks related to inputting their personal data into work networks, whether via company computers or their own devices.

Cyber Risks Very Real

The truth is, however, that there ARE numerous cyber risks. Storing passwords, credit card details and banking logins in a web browser or cache could prove exceptionally precarious. Personal data stored in emails is also very risky. Company networks are generally accessible by more than one user, offering simple in-roads. Even sending documents to unsecured network printers is potentially risky, particularly if the documents contain sensitive information. The same goes for photocopier hard drives.

As a business owner you’re going to have enough on your plate with the upcoming GDPR legislation kicking in. Allowing employee life admin tasks to be undertaken on company networks is going to raise even further problems because as soon as personal data is entered and stored on a company system, the company becomes immediately responsible for the security of that data.

Jas Sura, Security team lead at Altodigital says, “Although it may seem like simply ordering a new outfit for the weekend and quickly transferring some money to a friend is a quick and easy task, it may introduce problems further down the line. Site login and bank details may be stored automatically onto your device, meaning that if other staff members have access to it, or you leave your laptop unlocked while you are away from your desk, it could be a confidentiality disaster waiting to happen. 

“The explosion in growth of cyber hacking, in both capability and frequency, has caught short businesses of all sizes because it is so easy to do at a basic level. Hacking methods are becoming more and more sophisticated at times capable of fooling more tech-savvy individuals.

“Our recent research revealed that 18% of UK SMEs have been hacked in the last 12 months, with sophisticated email phishing the most common form of hacking. As technology progresses, it’s really important that businesses make steps towards improving their business security – whether that be regularly changing passwords to be more secure, using encryption, having a managed firewall, or making regular backups!”

Take Advice, Set Policies

Businesses really should be taking serious steps to ensure the security of their data, and consideration towards the allowance of personal admin really must factor. Consult with your IT security consultants and legal advisers and put a policy in place so that you are protected.

Charity Urging Businesses to Increase Employment for those with Learning Disabilities

Registered charity Mencap is trying to encourage employers to make use of apprenticeships to boost levels of employment for potential employees with learning disabilities.

Mencap says that research from the Health and Social Care Information Centre shows that fewer than 6 per cent of adults with a recognised learning disability are in paid employment, and that people with these disabilities are up against various barriers when seeking work. These barriers include complex application forms; negative attitudes from employers and rigid interview processes that don’t allow any flexibility.

Lack of Training for Learning Disabilities Apprentices

Even when people with learning disabilities do make it into employment, they regularly face a lack of training and onward opportunities, according to Mencap.

Last year the Government announced a reduction of the minimum requirements for maths and English standards to make it easier for people with learning disabilities to pursue certain apprenticeships.

According to Mencap, “By ensuring people with a learning disability are able to access apprenticeships, it will provide a route into work better suited to people with a learning disability where they can demonstrate their skills”.

According to Government data, during the period 2014-2015, fewer than 1 per cent of apprentices declared a moderate learning disability.

Plans set to Ease the Route in Apprentices with Learning Disabilities

Chief executive of Mencap Jan Tregelles, said: “The introduction of these plans are a welcome recognition from Government that people with a learning disability cannot be left behind when accessing such a vital and valuable route into work as an apprenticeship.

“Lowering the Maths and English requirement for people with a learning disability on apprenticeships could allow a whole new generation to experience the pride, joy and independence that employment can offer – something that just 5.8% of people with a learning disability currently do.”

Furthermore, Secretary of State for Work and Pensions, David Gauke, added: “People with a learning disability deserve the same opportunities that others have in every aspect of their lives, including in the workplace. Almost 600,000 disabled people have entered work in the last three years, and we must build on this progress.”

Apprenticeships should act as a valuable route into employment for those with learning disabilities, who have an incredible amount to offer in many ways.

For more information about taking on an apprentice, speak to your local bookkeepers.

Regular Voluntary Overtime Included in Holiday Pay

Towards the end of last year, we discussed in an article how holiday pay must now include results based commission.

The ruling in the Court of Appeal followed a case involving a British gas sales person who had claimed his holiday pay had been incorrectly calculated as it did not include any allowance for the commission he would have earned during the period he was on holiday. We discussed at the time how the decision made by the Court was set to have serious consequences for any business with employees on commission schemes.

Further to this and no doubt of even further concern to business owners, the Employment Appeal Tribunal (EAT) has recently confirmed that payments for overtime undertaken on a purely voluntary basis should be included in holiday pay, providing they are paid regularly enough to constitute ‘normal pay’.

The Case of Dudley Metropolitan Borough Council v Willetts

The ruling came about following the conclusion of the case of Dudley Metropolitan Borough Council v Willetts and others in which 56 council workers brought employment tribunal claims for unlawful deductions from wages in connection with how their holiday pay was calculated.

The council workers claimed that their holiday pay should have included payments for voluntary overtime. The Tribunal concluded that the workers’ voluntary overtime payments were sufficiently regular to constitute ‘normal pay’, which, according to vast volumes of past case law, must be included in holiday pay.

All Cases Must be Judged on an Individual Basis

The EAT said that where a pattern of work extends for a sufficient period of time and recurs regularly, it should be classed as ‘normal’. However, the EAT did issue a warning that cases do vary and that it is down to the individual Employment Tribunal to decide whether or not overtime payments are adequately ‘regular and settled’ so as to be included in the holiday pay.

This recent decision provides further clarification on a one of the most discussed subjects in employment law.

If you are unsure as to whether your methods of calculating holiday pay fall in line with the latest rulings and case law, seek advice from your local bookkeepers.

GDPR to Become Law Next Month

A new Data Protection Bill is due to be published in September 2017, bringing the EU’s General Data Protection Regulation (GDPR) into UK law.

Under GDPR, individuals will be awarded a new right to request that their personal data is completely erased. UK law will extend this right by requiring social media providers to delete all of a personal’s posts from before they were under 18, if requested.

Support will be provided to businesses to make sure they are in a position to manage and secure their data correctly. The Information Commissioner will also be given greater powers to defend consumer interests and will be able to levy increased fines of up to £17 million, or 4 per cent of global turnover for the most serious data related breaches.

Changes in Favour of the Consumer

 The new Data Protection Bill will allow people to enjoy more control over their data. They will get a greater say in what it is used for as it will be easier to withdraw consent for its use. Parents and guardians will be responsible for giving consent for their children’s data to be used, and ‘explicit’ consent will be necessary in order to process sensitive personal data. This means opting in rather than opting out, which should lead to consumers receiving less cold calls.

Furthermore, the definition of ‘personal data’ will be expanded to cover DNA, IP addresses and internet cookies. The Bill will make it easier and free for individuals to require an organisation to disclose any personal data held on them, and it will be more straightforward for customers to migrate their data from one service provider to another.

Strengthening the Law to Reflect Today’s Digital Economy

Many of the changes being introduced are based around the aim of strengthening the law to reflect today’s digital economy. With the introduction of the Bill, it will be a criminal offence for an organisation to recklessly or intentionally allow someone to be identified from the use of data that has been anonymised, in other words, data that has been adjusted in such a way that the holder should not be able to be identified. In addition, criminal charges could be faced by organisations found tampering with data that an individual has requested.

Challenging Changes?

Some of these new requirements may lead to challenges for businesses, particularly those that do not have their data stored digitally, making it more difficult to sort it. Many experts have warned that numerous businesses are by no means prepared for the new rules.

The extent of the new legislation is also presently unclear. There is talk of some exemptions depending on the type of data in question, but nothing has yet been confirmed.

As soon as more details come to light, we will share them. Follow us on Twitter and check back to this news feed to stay up to date.

New Rules on PSC Registers

As of April 2016, most UK limited companies and limited liability partnerships (LLPs) have been required to hold and maintain a register of people with significant control. The PSC Register as it is known must be filed with Companies House on incorporation and as part of a company’s annual confirmation statement as of June 2016.

With the regime only still fairly new, it has come as something of a surprise to the business world that changes have already been introduced as of 26^th June 2017.

EU Fourth Money Laundering Directive

These changes have come about as part of the EU Fourth Money Laundering Directive (MLD4) covering anti-money laundering and anti-terrorist financing measures. Whilst the UK is still part of the UK, the laws will apply.

Companies House has decided that the accuracy and completeness of current PSC data needs to be improved. Companies will therefore now be required to report any changes to their PSC information in real time as they happen, rather than wait until the annual confirmation statement is submitted.

The changes dictate that where there is a change to the information, companies will now have a 14-day timescale during which they must update their PSC register, plus a further 14 days in which to notify Companies House. The forms to be used are PSC01 (give notice of individual person with significant control) and PSC09 (give notice of update to PSC statements.

Support Available from Companies House

Companies House has issued a statement saying that for those companies requiring additional support in understanding the PSC regime, there will be individual assistance, particularly for those known to have submitted incorrect PSC information. Further guidance will be issued by Companies House, as well as a ‘report it now’ link being added to its website.

The Regulations governing these changes are yet to be released, but are expected very soon. Guidance notes are also awaited and we will share these as soon as they emerge. Be sure to follow us on Twitter and regularly check back to our news feed to keep up to date.

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.

The Importance of Having a Dynamic Lockdown Strategy

Now the UK’s threat level has been raised to critical, businesses really should be listening to the Government’s advice to develop a ‘dynamic lockdown’ strategy. Here we look at what a dynamic lockdown strategy involves and how you can go about preparing one.

What is Dynamic Lockdown?

Dynamic lockdown is a system of procedures focused on dynamically locking down premises in response to a fast moving attack happening either on the premises or in the immediate surrounding area.

Lots of businesses and public buildings are employing these procedures with the aim of protecting their premises and the people in or near them should an emergency situation arise.

What is the Aim of Dynamic Lockdown?

The objective of dynamic lockdown is to impede access by unwanted intruders and to prevent anyone who happens to be inside, such as workers or visitors, moving way from the zone of safety. Businesses that are located in areas of high public footfall are also making provision for offering their premises as a safe haven for people passing by who may be seeking shelter during an incident. This actually happened amongst various pubs and restaurants during the recent attack in London who took people in and locked down the premises until the danger had passed.

What Does a Dynamic Lockdown Strategy Involve?

In developing a dynamic lockdown strategy you will need to consider how to swiftly lock down all access and egress points. This includes doors, gates and windows plus loft hatches, skylights, basements and ducts. It is important to combine safety with flexibility so that there is a contingency should a need for evacuation arise. Both physical and electronic security measures should be included together with a strategy for zoning off areas of the property so that separate areas can be locked down independently.

The strategy should also allow for staff education so that everyone is aware of how dynamic lockdown works in practice. Teaching staff to be vigilant is also a wise move so that they know the reporting procedure for suspicious behaviour. The entire strategy should be planned in conjunction with security professionals.

We join the nation in expressing our sadness and concern over the recent events. From a practical perspective we should be looking at doing whatever we can to help secure ourselves, those we work with and everyone in the vicinity of our premises.

Employers of Non EEA Workers Now Facing Increased Costs

From 6 April 2017, the Immigration Skills Charge Regulations 2017 are in operation. These Regulations call for sponsoring employers of migrant workers employed under Tier 2 of the points-based immigration system to pay a new charge known as the ‘Immigration Skills Charge’. Here we answer the most commonly asked questions on the subject.

What is the Immigration Skills Charge?

The Immigration Skills Charge (ISC) is now levied upon all voluntary and private sector employers of more than 250 staff. The charge will be £1,000 per certificate of sponsorship per year and there are concessions for charities and smaller businesses which will pay a reduced rate of £364.

The ISC is payable on top of the cost of the certificate of sponsorship. Other fees, including the Immigration Health Surcharge plus visa application fees, some of which have also increased as of 6 April, are also payable in addition.

Are There any Exemptions?

Exemptions apply to Tier 2 migrants sponsored before 6 April 2017 applying from inside the UK to extend their visa; Tier 2 migrants employed in a specified PhD level job; Tier 2 graduate trainees taking the Intra-Company Transfer route; Tier 2 migrants remaining with the same or a different sponsor; international students switching from Tier 4 student visas to Tier 2 working visas, and dependents of Tier 2 workers.

Why has the Charge Been Introduced?

The ISC is intended to decrease the number of businesses employing migrant workers, hoping that they will instead recruit and train British staff so that the UK continues to attract talented students and the most highly qualified migrants. There is also the goal of protecting the country’s leading reputation for education and research.

Is Anything Else Changing?

As well as the introduction of the ISC, the minimum salary threshold for workers sponsored under Tier 2 (general) has increased from £25,000 to £30,000 per annum. The threshold for UK-based graduates will not change from £20,800.

On the contrary, the minimum salary for non-European Economic Area (EEA) graduate trainees coming to the UK via the Intra-Company Transfer has dropped from £24,800 to £23,000 per year. This would suggest that the Government has given due consideration to businesses transferring overseas branch workers to their UK offices.

The Government may in future also decide to levy a similar charge to the ISC on employers of EU nationals, if UK immigration minister Robert Goodwill’s proposal is accepted. However, business leaders are up in arms about the suggestion, so it may well be side lined.

With Brexit looming and the Government not stepping forward to reassure employers as to the situation with their existing EU workers, uncertainty is rife.

Should anything concrete arise we will of course let you know. In the meantime, should you have any queries concerning how to deal with employing migrant workers, why not seek advice from your local bookkeepers?

What You Need to Know About Making Tax Digital

Chancellor Philip Hammond’s March Budget was pretty much all doom and gloom although the backtracking on the self-employed National Insurance Contributions hike was a welcome relief.

One other glimmer of hope came in the shape of a delay to the introduction of the Making Tax Digital (MTD) regime which means that the self-employed, buy-to-let landlords, sole traders and small businesses that fall below the VAT threshold of £85,000 (as of 1 April 2017) will have an extra year to get ready for MTD. There is also a promise on the part of the government to consult on the design elements of tax administration in an attempt to streamline the system for taxpayers.

What is Making Tax Digital?

Making Tax Digital was brought in with the March 2015 Budget. It has a goal of transferring all tax records to a digital system. HMRC feels that putting the tax filing process into an automated system will lead to better quality record keeping which in turn should lessen the occurrence of mistakes and therefore boost revenue.

Under MTD, every person – including employed workers as well as the self-employed - will be given their own Digital Tax Account which they will be able to access online to view how much tax has been paid and how much is due. It is hoped that third parties like banks and building societies will link in with the digital account so that income can be automatically fed into it.

Also under MTD, unincorporated businesses earning more than £10,000 per year will have to submit tax information including a summary of income and expenditure on a quarterly basis. Businesses will also have to maintain digital accounting records using a system that is able to communicate with HMRC’s systems.

What MTD does not mean, and what has been widely misunderstood, is quarterly tax return filing. It is simply a summary needed four times per year. The aim for the system is that it will assist businesses in keeping on top of their tax positions throughout the year, which will help planning around finances and taxes.

What is the Timescale for Making Tax Digital?

The quarterly filing required under MTD was originally due to start from April 2018 with businesses under the VAT threshold first to start with the regime. However, this deadline has been put back to April 2019 meaning the smallest businesses have an additional year to get ready for the changes. For businesses above the VAT threshold, the deadline remains unchanged at April 2018. Furthermore, from April 2019, all VAT payments will have to be processed through MTD.

If you are concerned about MTD or digital filing, why not discuss the matter with your local bookkeepers? They’ll be able to guide you through all the necessary steps and will ensure you stay on course to meet the deadlines.