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.