< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX What led you in might not lead you out By James Pinchbeck, Partner Streets Chartered Accountants The majority of businesses operating pre Covid-19, did so with clarity of vision, a sense of purpose and direction of travel. Established business models, decision making, working practices and workforce management ensured that businesses were able to service customer demands and meet the needs of all stakeholders. Businesses were able to trade with some certainty, whilst at the same time, had some level of resilience to deal with the impact of changes whether unique to them or arising from government policy. Overall, this was the norm. What has changed? There is much talk about the new normal and perhaps whilst no one really can clearly define or describe it, many will have their own thoughts on what it is, looks or feels like. One thing is certain - the world of business has changed in many ways, whether it is how we work, where we work or even when we work. Even our attitudes to work have seemingly changed. For many, how customers are serviced and what they are offered has changed. However, the big challenge comes as we start to think about the lasting changes the pandemic has and continues to have on our lives and the way businesses operate. Certainly, the impact and length of lockdown has been so significant that few, if any, businesses should think that things will return to what they were before. As businesses trade through their lifecycle, invariably they will require different leadership styles and models to deal with the opportunities and challenges they face. Following such a significant change, organisations will now need to consider whether their leadership, strategic thinking and decision making is still fit for purpose. In the new norm or new order there is likely to be a far greater need for more collaborative leadership with less hierarchical structures. Certainly, few business leaders singularly possess the skills or qualities to deal with what is increasingly a Vuca world – one which is volatile, uncertain, complex and ambiguous. In such a dynamic environment with such impacting change, there is a real need for business leaders with visionary outlooks, perhaps a different skill set to those charged with managing the status quo. Business leaders will also need to be more empathetic, having a greater appreciation and understanding of the needs of its employees, with compassion for both collective and individual circumstances. Ironically in a world where we may feel overloaded with communication, there is a real need for business leaders with effective communication skills to ensure employees and all stakeholders have clear and concise awareness and understanding of the direction of travel and changes. To be truly effective, such communication has to be two way, with leaders listening to and engaging with stakeholders and not just communicating to them. Effective communication will also be key in helping to create a sense of belonging, a sense of purpose and organisational culture, especially within those businesses where staff are working remotely. As we have seen over the last few months with the governments’ handling of the pandemic, sometimes decisions or actions don’t work out as intended. The same is often the case in business. Perhaps now more than ever, business leaders need to demonstrate humility and integrity in such an event; an approach that should at least earn the trust and respect of employees and other stakeholders. We face challenging times ahead, which will certainly call on the skills, resolve and resilience of those running businesses, for what is likely to be more of marathon than a sprint. 20-21.qxp_Layout 1 07/10/2020 10:46 Page 120-21.qxp_Layout 1 07/10/2020 10:46 Page 222 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk IT AND TELECOMS Updating an outmoded telecoms system not only helps to streamline and modernise a company’s internal process, but also improves competitiveness in an increasingly difficult marketplace. Presently, some 8,000 fax machines are still in use across the NHS, and our beleaguered health service is far from alone with some businesses in our region still sending and receiving faxes despite the drawbacks and security risks. The COVID-19 pandemic has only heightened these issues and laid bare the failings and shortcomings of business communication across the board. Most businesses will at least have broadband in their premises and likely a half decent telecoms system in place, so they may be looking to augment their IT and communications rather than replace it altogether. Yet simple solutions such as file sharing services, software and apps still go neglected by many businesses. WeTransfer and Dropbox enable companies and individuals to securely send – and in the case of the latter, store – documents, images and other important data. This can be accomplished in the office or remotely from a smart phone or tablet and both services are free-to-use up to a certain capacity whilst also offering paid-for subscriptions for businesses. The topic of Dropbox brings us on to cloud storage. At its simplest, the ‘cloud’ refers to software and services that run or are stored on the internet rather than locally on one’s computer. As with the internet itself, the cloud isn’t owned or managed by any one organisation but is rather a collective term for a variety of applications operated by different organisations. Though, it’s fair to say, that some organisations have more of a monopoly than others – big names being Google, Amazon and Microsoft. Lesser known, perhaps, is the number of common applications that are cloud-based, including BBC iPlayer. For businesses, this allows more flexible, accessible and trust-worthy storage than a hard drive or local servers – both of which can malfunction, be ruined in fire or flood or corrupt and erase data. Because of its inherent flexibility, cloud computing is perfectly suited to remote workers who can access everything they need from a home office. The same can be said for working on-the-go, with staff able to access files via a smart phone, tablet or laptop, whether that’s on the way to a meeting or during a networking session. Surely that’s preferable to the oft-forgotten memory stick. As businesses continue to adapt to home working, cloud computing has never been more critical to a company’s success and future trading. Invest, upgrade, evolve The pandemic has highlighted the need to evolve beyond outdated and inefficient communication technologies and invest in modern infrastructure and the best in digital comms. 24 Á 22-25.qxp_Layout 1 07/10/2020 10:48 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23 IT AND TELECOMS © Shutterstock /Jirsak 22-25.qxp_Layout 1 07/10/2020 10:48 Page 224 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk IT AND TELECOMS Despite the obvious benefits to business, there are companies that still refuse to implement a cloud storage strategy into their operation. There are several reasons why, from misconceptions around the initial investment and subscription costs, to a simple fear of new technologies – something that many heritage SMEs struggle with. But perhaps the biggest fear concerns security. But the security of cloud storage and similar services is improving all the time. Those regular updates on your smart phone usually contain security fixes, meaning they need to be installed as soon as possible. Compared with, say, the telephone, digital technologies are still very young, but it’s important for companies to be cognizant of security risks such as hacking and phishing and tool staff up with the knowledge they need. A robust suit of virus protection services is also a must. Some businesses may think they’re saving money by using a cheaper – or even free – virus protection but, ultimately, it’s a false economy. Businesses cannot afford to cut corners when it comes to cybersecurity. Though hacks are never welcome, bigger businesses are often in a better position to endure them and may even have insurances in place to cover them in such an event. But for SMEs, a hack can be truly devastating and something they may not ever fully recover from. But the benefits outweigh the risks. Take, for example, video conferencing, which has existed in one form or another since the eighties. But now with web- based video conferencing, teams can convene in virtual meeting rooms. Most video conferencing solutions typically come bundled with online collaboration tools such as document sharing, text chat and screen sharing. The benefit, of course, is that teams can collaborate over distances and meetings can be hold from parties in two or more different countries. It’s all well and good saying that businesses should adopt digital communications and cloud technologies, but that’s often easier said than done. Given that the East Midlands is one of the biggest regions in the UK, and that both have wide rural areas, it’s no surprise that connectivity is a challenge for many businesses. However, the © Shutterstock /Casezy idea © Shutterstock /metamorworks 22-25.qxp_Layout 1 07/10/2020 10:48 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25 IT AND TELECOMS government’s ongoing £22 million Gigabit Broadband Voucher Scheme is helping to ensure that rural businesses aren’t left behind and can have fast, reliable broadband. With the pandemic showing no signs of abating, it’s critical that businesses future-proof themselves where possible and sure-up their operations, and that means guaranteeing they have good broadband in place – after all, so much of businesses is conducting online now. But businesses in rural locations need to be quick to apply as the scheme closes on 31st March 2021. On a similar note, the continuing rollout of 5G connectivity is taking businesses to the next level with promises of lightning-fast uninterrupted connectivity. It’s also crucial here that rural businesses aren’t left behind and, encouragingly, 5G technology was installed along the Lincolnshire coast earlier this year. As major towns and cities across our region continue to enter the new age of digital connectivity, it’s important that our vital rural businesses are included. One of the biggest business communication trends tipped for growth is unified communications – that is the integration of real-time and near real- time communications systems. This means bringing together chat services, phone, video conferencing, messaging, feedback and commenting systems into a unified system which reduces infrastructure and boasts more features for a more responsive experience. What has taken place with video conferencing becoming near inseparable from other collaborative communication tools will happen right across the sector as companies bring their communications increasingly into one unified solution. Necessity in the wake of the pandemic has driven the widespread adoption and use of video conferencing applications such as Zoom. Likely, these tools will simply become part of a business’ toolkit rather than just being a means of surviving the coronavirus crisis. Though none of us would have asked for the pandemic, we can use it is a catalyst to usher in step changes in outdated IT and telecoms systems and usher in an age of more unified, interconnected business communication. 22-25.qxp_Layout 1 07/10/2020 10:48 Page 426 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk LEGAL SERVICES Given business law is a complex and nebulous branch of legal services, the quality and effectiveness of the advice and assistance a company receives can directly impact its future trading and endeavours. To put it another way, if a company opts for the cheapest option available, they can be putting themselves in jeopardy. Fortunately, companies can be checked out online to ensure they’re fully compliant, and with online aggregators and review services, it’s easy to see reviews other companies have left for a firm. Companies can also use the Legal 500 to make more informed decisions. Although having quality and respected solicitors on side will help to safeguard a business, it’s by no means a silver bullet and businesses must ensure they not only have a good understanding of business law and legislation, but remain compliant. Employment law is an umbrella term regulating the relationship between employers and employers from recruitment right through to exit. Within that it describes what employers can expect from employees, what they can ask of employees, and employee rights at work – things such as working time, holiday entitlement and pay. Businesses also need to bear in mind what they can and can’t ask about its employees. Diversity in the workplace is to be celebrated, with safeguards in place such as the Equality Act – in which people of all race, genders, ages and sexualities are treated fairly – and job applications asking applicants to supply this information if desired. But employers must be mindful around issues of sexuality and gender, especially with the rise of trans visibility both in society and in the workplace. If a company – or even its employees – ask another worker if they’re trans, for example, that employee may well pursue litigious action. Equally as big a topic of late is sexual abuse and misconduct in the workplace which has entered a tipping point in the wake of #MeToo movement. Although the movement was focused on Hollywood and the behaviour of disgraced movie mogul Harvey Weinstein, it has since spread to many other areas, including offices across the UK. As in all aspects of business law, employers must be cognizant of forthcoming changes and legislation so they can prepare and take steps to ensure compliance. Examples include the government’s new immigration policy which functions on a points-based system similar to the model used in Australia. Employers wanting to hire someone from Europe will need to comply with these new policies. Another recent change is the government’s plan to make any part of a termination payment over £30,000 We explore the various different branches of legal services and the ways in which solicitors can help assist businesses dealing with IP infringement, new data privacy laws, or employment law. Safeguarding business Safeguarding business 26-28.qxp_Layout 1 07/10/2020 10:50 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 27 LEGAL SERVICES subject to employer NIC. Although it was delayed from April 2018, it became law in April of this year. The Parental Bereavement (Leave and Pay) Act 2018, which became law in September last year came into effect earlier this year. It gives employees who lose a child under the age of eighteen, or who suffer from a stillbirth from the twenty-fourth week of pregnancy, the right to two weeks leave as a ‘day one’ employment right. It will be pay the same statutory rate as other family friendly rights, such as maternity leave. There is much more than just employment law when it comes to legal services required by businesses. Intellectual property (IP) not only refers to products or services produced by a company, but that company’s identity. Solicitors specialising in IP can offer a range of services, whether that’s IP disputes or strategy, or management and protection for patents, trademarks, domain names and designs etc. There are three steps recommended by government in the event a company needs to defend its IP and take action if it’s being infringed. Firstly, a company is advised to get the other party to stop using their IP or come to an agreement, such as a license. Secondly, a company can use mediation or another type of dispute resolution, or, lastly, take legal action should these preceding steps fail. Advice can be sought from solicitors at any stage, though they are only legally required for the third. As IP disputes fall under injunction-based law, they must be handled by a specialist IP dispute lawyer supported by commercial litigation colleagues. Disputes are handled in separate courts whose rules and expectations have little in common with those of other courts, and IP disputes often involve associated contractual disputes and specialist applications requiring the input of commercial litigation colleagues into the team. IP infringement covers a wide variety of occurrences such as counterfeiting, to using a similar packaging design, or the © Shutterstock /Alexander Supertramp 28 Á 26-28.qxp_Layout 1 07/10/2020 10:50 Page 228 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk LEGAL SERVICES appearance of trademarks and symbols that come close to existing branding. Companies should be aware, however, that not everything can or should be trademarked. In 2008, for example, Cadbury attempted to trademark the colour purple, but was thwarted by Nestlé. It could not trademark the Pantone 2865c purple used on its Dairy Milk wrappers because it did not meet the requirements of what could be trademark, and the company are hardly alone in this. Where IP law refers to a company’s branding and products, data protection and privacy law issues have an impact on most HR activities from recruitment and employee record keeping, to performance monitoring and references. But it’s also becoming an increasingly hot topic in business with the rapid evolution of digital technology. Consequently, changes in legislation have occurred in order to keep up. In May 2018, General Data Protection Regulation (GDPR) came into force and replaced the previous Data Protection Act 1998. GDPR affects how organisations gather, store and use data and individual rights over access to information. Augmenting this legislation is the forthcoming ePrivacy Regulation which will provide greater regulation of electronic communications within the European Union. Once it comes into law, it will replace the EU’s existing ePrivacy and Electronic Communications Directive 2002 which was implemented in the UK back in 2003. Despite the European focus of the legislation, Brexit is unlikely to have much of an affect. Experts say this is because UK companies will likely want to continue to do business in EU countries and will therefore adopt these regulations either fully or in part. For now, all adopted EU regulations continue to apply in the UK until the end of the Brexit transition period on Thursday December 31 2020. The moral is that businesses will continue to face even more regulatory burden going forward and so they must be prepared. Solicitors can advise on a range of data protection laws – including preventing breaches and violations – but the onus is on business leaders to ensure they have a working understanding of their responsibilities and liabilities under data protection law and take the appropriate steps to ensure compliance. Solicitors can help to defend against allegations of unlawful data breaches, for example or, if a company has breached data laws, how best to handle and engage with the situation. When it comes to business law, it pays to be cautious – doubly so in the current climate. © Shutterstock /kan_chana 26-28.qxp_Layout 1 07/10/2020 10:50 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29 ROUND TABLE © Shutterstock /soul_studio James Pinchbeck, Streets Chartered Accountants and IoD East Midlands Policy Voice Ambassador: “The role of regional policy voice and governance in the IoD is to really simulate thoughts and opinions from business leaders about issues affecting their organisations, and then to feed these back not just to London and the IoD Head Office to influence Government, but also to connect with regional organisations so that we’re actually in touch and able to understand the issues affecting businesses not just through COVID but on a day to day basis.” “To move onto our first topic, we, as employers, are being actively encouraged to return to work and their place of work as furlough comes to an end. What challenges does the panel feel this creates for business leaders and their workforce?” Simon Fenley-Lamb, Chief Operating Officer for the Skills and Education Group: “The challenge for us is that we’re having to blend our workforce, with some working from home and some working from the office on differing hybrid schemes. We had 70% of our workforce on furlough with only a core team remaining, and that core team did everything that was necessary to keep the organisation going during the lockdown period, which involved changing the way we work and in some cases revamping our original protocols IoD East Midlands Policy Voice Roundtable With COVID-19 and Brexit both happening at the same time, there are plenty of challenges ahead and much confusion as to what businesses should be doing and how best to prepare. Last month, the IoD East Midlands met for the IoD East Midlands Policy Voice Roundtable, online via Zoom. Chaired by James Pinchbeck (Streets Chartered Accountants) and attended and transcribed by East Midlands Business Link, the event hoped to shine light on some of the problems faced by businesses in our area. 30 Á James Pinchbeck, Streets Chartered Accountants and IoD East Midlands Policy Voice Ambassador 29-33.qxp_Layout 1 09/10/2020 12:51 Page 1Next >