Latest news and updates on issues affecting business. - Bluefin Group
Latest news and updates on issues affecting business. April 2017
In this issue • 5 significant legislative changes coming into force on 6th April • Recent HSE news and prosecutions • Number of HSE prosecutions against directors triples in 2016 • Spring Budget 2017 summary: good or bad news for business? • Recent cyber security news and prosecutions
5 significant legislative changes coming into force on 6th April Beginning on 6th April, UK businesses will have several new pieces of legislation that they will have to comply with unless they wish to incur fines and penalties. To ensure that your business is aptly prepared, here are the five most significant pieces of legislation coming into force: 1.
Gender pay gap: Qualifying companies (250 or more employees) will need to publish the details of their gender pay gap on their websites and to the government on an annual basis. The first publication is due in April 2018 and must contain six specific pieces of information.
2. Apprenticeship levy: All companies with a pay bill of more than £3 million each year will be required to pay an apprenticeship levy. The levy will be set at 0.5 percent of their total pay bill, minus a £15,000 levy allowance from the government. 3. Modern Slavery Act reports: All companies that produce goods and services with an annual global turnover of at least £36 million must make a financial statement within six months of the end of the first financial year. For more information, consult the government’s practical guide. 4. National living wage change: The national minimum wage (NMW) and national living wage (NLW) will increase to the following amounts: • apprentices: £3.50 per hour • workers under 18: £4.05 per hour • workers aged 18 to 20: £5.60 per hour • workers aged 21 to 24: £7.05 per hour • workers aged 25 and over (NLW): £7.50 per hour. 5. Immigration skills charge: The charge will be levied against employers that employ migrants in skilled areas and will be set at £1,000 per employee per year, or a reduced rate of £364 for small or charitable organisations.
Number of HSE prosecutions against directors triples in 2016 One year after new sentencing guidelines for health and safety offences, corporate manslaughter, and food safety and hygiene offences came into force in February 2016, the number of health and safety prosecutions against directors has tripled and UK businesses have seen a dramatic rise in the value of health and safety fines. In fact, in 2016, the 20 largest health and safety fines totalled £38.6 million. This is a significant increase, especially when compared to the previous two years, whose 20 largest fines totalled £13.5 million in 2015 and £4.3 million in 2014. The total value of health and safety fines imposed on businesses increased by 43 percent in the six months since the new guidelines were introduced, according to research from global law firm, Clyde & Co. These new guidelines place a much higher burden on directors and senior managers for ensuring health and safety in their organisations, and make it increasingly likely that they could go to prison for both intentional breaches or a flagrant disregard for their responsibilities. Avoid these new debilitating fines by conducting a thorough risk management and health and safety review of your premises and policies. In addition, you should solicit the input of your employees, since asking them to identify their health and safety concerns can be invaluable in finding hazards that would not have been obvious to upper-level managers.
Recent HSE news and prosecutions Company fined and contractor sentenced for fatal safety failings TE Scudder Ltd was fined £600,000 and ordered to pay £27,408 in costs, and Patrick Pearson, a selfemployed contractor, was ordered to complete 120 hours of community service and pay £3,000 in costs after a construction worker died and another was seriously injured. Whilst working on a building, a lift shaft was being decommissioned when the chain supporting the lift car broke, causing it to fall six storeys with the two men inside. In its investigation, the HSE found that a thorough risk assessment had not been conducted, which resulted in a failure to adequately account for the potential risks. Construction firm fined £400,000 after worker fell from height Kier Construction Limited was fined £400,000 and ordered to pay costs of £1,534 after a worker fell 4 metres through a hole in the floor. In its investigation, the HSE found that the firm had not taken any steps to prevent the accident from occurring. Sole trader receives suspended sentenced after scaffold collapse After scaffolding collapsed at a retail site, Mark Kinsley, a sole trader, was fined £1,400, ordered to pay costs of £1,648, and sentenced to 16 weeks in custody (suspended for 12 months). In its investigation, the HSE found that Kinsley failed to properly design and erect the scaffolding in a safe manner, which jeopardised the health and safety of workers and the public.
Spring Budget 2017 summary: good or bad news for business? On 8th March, Philip Hammond, Chancellor of the Exchequer, delivered the Spring Budget to Parliament. Does Hammond’s new budget spell good or bad news for your business? Key Numbers The Office for Budget Responsibility’s (OBR) forecast for business investment showed improvements since the Autumn Statement, concluding that business investment declined 1.5 percent in 2016 (up from 2.2). The OBR estimated that business investment will shrink 0.1 percent in 2017 (up from 0.3), then return to growth with 3.7 percent in 2018 (down from 4.1), 4.2 percent in 2019 (down from 5.3) and 3.9 percent in 2020 (down from 4.1). Highlights for Businesses and Individuals • • •
•
•
Insurance Premium Tax (IPT) will increase by 2 percent: The IPT, a tax on general insurance premiums, will increase from 10 to 12 percent in June 2017, resulting in premium increases for many types of insurance. National Insurance Contributions (NICs) for the self-employed will not increase: Class 2 NICs (paid on profits above £5,965) will be abolished in 2018. Three measures will amount to £435 million to support businesses affected by the business rates revaluation. The next revaluation takes effect in England on 1st April 2017. To help, Hammond pledged three measures: • Small businesses losing Small Business Rate Relief will not pay more than £600 in business rates than they did in 2016-17. • £300 million to local authorities to provide discretionary relief to hard-hit businesses. • A £1,000 discount for pubs with a rateable value up to £100,000. New consumer protection measures that include preventing unexpected charges when consumers renew a subscription or end a free trial, making terms and conditions simpler, and fining companies that misled or mistreat customers. Corporation tax falls to 19 percent in April 2017 and 17 percent in 2020.
Recent cyber security news and prosecutions Businesses could face fines for not registering CCTV cameras with the ICO A Coventry business owner was fined £200 and ordered to pay £439.28 in prosecution costs and a £20 victim surcharge after she plead guilty to violating Section 17 of the Data Protection Act (the Act). The business owner was using in-store closed-circuit TV (CCTV) cameras as part of her business but was unaware that she had to register them with the Information Commissioner’s Office (ICO). However, the ICO had sent her letters explaining that she was in violation of the Act and needed to register her cameras along and pay the £35 annual fee. Whilst the business owner received the ICO’s letters, she chose to ignore them, as she thought they were spam. ICO issues one of its highest fines to firm behind 22 million nuisance calls Media Tactics, a telemarketing services firm for businesses, was fined £270,000—one of the highest fines that the ICO has issued for nuisance calls—and given a legal notice to stop making unlawful calls after it was found guilty of making more than 22 million nuisance calls. In its investigation, the ICO found that the firm not only did not have permission to make the calls, but that the list of numbers used were gained from untrustworthy third parties. If the firm does not comply with the ICO’s legal notice, it could result in further court action. ICO issues guidance for consent under the GDPR The government announced that it will be adopting the General Data Protection Regulation (GDPR), which will come into force on 25th May 2018. The GDPR will affect companies that conduct business with mainland Europe. In order to prepare your company for the GDPR, the ICO has released guidance for consent. Since the GDPR builds upon the Data Protection Act, there is a high standard of consent that companies have to meet during the process of gaining customers’ consent.
The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2017 Zywave, Inc. All rights reserved.
bluefingroup.co.uk Registered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU. Registered in England No: 931954. Authorised and regulated by the Financial Conduct Authority. 1908-0417
In this issue • 5 significant legislative changes coming into force on 6th April • Recent HSE news and prosecutions • Number of HSE prosecutions against directors triples in 2016 • Spring Budget 2017 summary: good or bad news for business? • Recent cyber security news and prosecutions
5 significant legislative changes coming into force on 6th April Beginning on 6th April, UK businesses will have several new pieces of legislation that they will have to comply with unless they wish to incur fines and penalties. To ensure that your business is aptly prepared, here are the five most significant pieces of legislation coming into force: 1.
Gender pay gap: Qualifying companies (250 or more employees) will need to publish the details of their gender pay gap on their websites and to the government on an annual basis. The first publication is due in April 2018 and must contain six specific pieces of information.
2. Apprenticeship levy: All companies with a pay bill of more than £3 million each year will be required to pay an apprenticeship levy. The levy will be set at 0.5 percent of their total pay bill, minus a £15,000 levy allowance from the government. 3. Modern Slavery Act reports: All companies that produce goods and services with an annual global turnover of at least £36 million must make a financial statement within six months of the end of the first financial year. For more information, consult the government’s practical guide. 4. National living wage change: The national minimum wage (NMW) and national living wage (NLW) will increase to the following amounts: • apprentices: £3.50 per hour • workers under 18: £4.05 per hour • workers aged 18 to 20: £5.60 per hour • workers aged 21 to 24: £7.05 per hour • workers aged 25 and over (NLW): £7.50 per hour. 5. Immigration skills charge: The charge will be levied against employers that employ migrants in skilled areas and will be set at £1,000 per employee per year, or a reduced rate of £364 for small or charitable organisations.
Number of HSE prosecutions against directors triples in 2016 One year after new sentencing guidelines for health and safety offences, corporate manslaughter, and food safety and hygiene offences came into force in February 2016, the number of health and safety prosecutions against directors has tripled and UK businesses have seen a dramatic rise in the value of health and safety fines. In fact, in 2016, the 20 largest health and safety fines totalled £38.6 million. This is a significant increase, especially when compared to the previous two years, whose 20 largest fines totalled £13.5 million in 2015 and £4.3 million in 2014. The total value of health and safety fines imposed on businesses increased by 43 percent in the six months since the new guidelines were introduced, according to research from global law firm, Clyde & Co. These new guidelines place a much higher burden on directors and senior managers for ensuring health and safety in their organisations, and make it increasingly likely that they could go to prison for both intentional breaches or a flagrant disregard for their responsibilities. Avoid these new debilitating fines by conducting a thorough risk management and health and safety review of your premises and policies. In addition, you should solicit the input of your employees, since asking them to identify their health and safety concerns can be invaluable in finding hazards that would not have been obvious to upper-level managers.
Recent HSE news and prosecutions Company fined and contractor sentenced for fatal safety failings TE Scudder Ltd was fined £600,000 and ordered to pay £27,408 in costs, and Patrick Pearson, a selfemployed contractor, was ordered to complete 120 hours of community service and pay £3,000 in costs after a construction worker died and another was seriously injured. Whilst working on a building, a lift shaft was being decommissioned when the chain supporting the lift car broke, causing it to fall six storeys with the two men inside. In its investigation, the HSE found that a thorough risk assessment had not been conducted, which resulted in a failure to adequately account for the potential risks. Construction firm fined £400,000 after worker fell from height Kier Construction Limited was fined £400,000 and ordered to pay costs of £1,534 after a worker fell 4 metres through a hole in the floor. In its investigation, the HSE found that the firm had not taken any steps to prevent the accident from occurring. Sole trader receives suspended sentenced after scaffold collapse After scaffolding collapsed at a retail site, Mark Kinsley, a sole trader, was fined £1,400, ordered to pay costs of £1,648, and sentenced to 16 weeks in custody (suspended for 12 months). In its investigation, the HSE found that Kinsley failed to properly design and erect the scaffolding in a safe manner, which jeopardised the health and safety of workers and the public.
Spring Budget 2017 summary: good or bad news for business? On 8th March, Philip Hammond, Chancellor of the Exchequer, delivered the Spring Budget to Parliament. Does Hammond’s new budget spell good or bad news for your business? Key Numbers The Office for Budget Responsibility’s (OBR) forecast for business investment showed improvements since the Autumn Statement, concluding that business investment declined 1.5 percent in 2016 (up from 2.2). The OBR estimated that business investment will shrink 0.1 percent in 2017 (up from 0.3), then return to growth with 3.7 percent in 2018 (down from 4.1), 4.2 percent in 2019 (down from 5.3) and 3.9 percent in 2020 (down from 4.1). Highlights for Businesses and Individuals • • •
•
•
Insurance Premium Tax (IPT) will increase by 2 percent: The IPT, a tax on general insurance premiums, will increase from 10 to 12 percent in June 2017, resulting in premium increases for many types of insurance. National Insurance Contributions (NICs) for the self-employed will not increase: Class 2 NICs (paid on profits above £5,965) will be abolished in 2018. Three measures will amount to £435 million to support businesses affected by the business rates revaluation. The next revaluation takes effect in England on 1st April 2017. To help, Hammond pledged three measures: • Small businesses losing Small Business Rate Relief will not pay more than £600 in business rates than they did in 2016-17. • £300 million to local authorities to provide discretionary relief to hard-hit businesses. • A £1,000 discount for pubs with a rateable value up to £100,000. New consumer protection measures that include preventing unexpected charges when consumers renew a subscription or end a free trial, making terms and conditions simpler, and fining companies that misled or mistreat customers. Corporation tax falls to 19 percent in April 2017 and 17 percent in 2020.
Recent cyber security news and prosecutions Businesses could face fines for not registering CCTV cameras with the ICO A Coventry business owner was fined £200 and ordered to pay £439.28 in prosecution costs and a £20 victim surcharge after she plead guilty to violating Section 17 of the Data Protection Act (the Act). The business owner was using in-store closed-circuit TV (CCTV) cameras as part of her business but was unaware that she had to register them with the Information Commissioner’s Office (ICO). However, the ICO had sent her letters explaining that she was in violation of the Act and needed to register her cameras along and pay the £35 annual fee. Whilst the business owner received the ICO’s letters, she chose to ignore them, as she thought they were spam. ICO issues one of its highest fines to firm behind 22 million nuisance calls Media Tactics, a telemarketing services firm for businesses, was fined £270,000—one of the highest fines that the ICO has issued for nuisance calls—and given a legal notice to stop making unlawful calls after it was found guilty of making more than 22 million nuisance calls. In its investigation, the ICO found that the firm not only did not have permission to make the calls, but that the list of numbers used were gained from untrustworthy third parties. If the firm does not comply with the ICO’s legal notice, it could result in further court action. ICO issues guidance for consent under the GDPR The government announced that it will be adopting the General Data Protection Regulation (GDPR), which will come into force on 25th May 2018. The GDPR will affect companies that conduct business with mainland Europe. In order to prepare your company for the GDPR, the ICO has released guidance for consent. Since the GDPR builds upon the Data Protection Act, there is a high standard of consent that companies have to meet during the process of gaining customers’ consent.
The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2017 Zywave, Inc. All rights reserved.
bluefingroup.co.uk Registered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU. Registered in England No: 931954. Authorised and regulated by the Financial Conduct Authority. 1908-0417
