6thOct
News article

Coronavirus permanently changes working patterns

Most office workers will not return to their workplaces five days a week even after the coronavirus (COVID-19) pandemic is over, according to a survey carried out by the British Council for Offices (BCO).

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Most office workers will not return to their workplaces five days a week even after the coronavirus (COVID-19) pandemic is over, according to a survey carried out by the British Council for Offices (BCO).

The survey of 2,000 office workers found that employers and employees alike see home working as a long-term measure, as the pandemic has changed working patterns.

Employees at all levels, from executives to trainees, intend or hope to divide their time in future between their homes and their workplaces, according to the survey.

Over 60% of senior executives and 58% of entry-level workers want to alternate, the BCO found.

Commenting on the findings, Richard Kauntze, Chief Executive of the BCO, said: 'We are never going to go back to how things were before.

'The idea that people will return to the five-day week in the office has gone, and I think a much more blended approach is likely, two or three days in the office and two or three at home or wherever is going to be a much more typical pattern.

'Most people will value being able to work on that basis.'

5thOct
News article

Retirement plans altered by pandemic

The COVID-19 pandemic has changed the retirement plans of one in eight older workers, according to research by the Institute for Fiscal Studies (IFS).

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The COVID-19 pandemic has changed the retirement plans of one in eight older workers, according to research by the Institute for Fiscal Studies (IFS).

The think tank's study was based on a survey of data from the English Longitudinal Study of Ageing (ELSA) COVID-19 survey covering some 10,000 people aged 50 and over.

The findings show 13% of older workers have already changed their planned retirement age due to the coronavirus pandemic.

Over half of those are now planning to retire later than they had previously intended. This is largely due to pension funds that have fallen in value or the ability to work from home.

Almost a third of older workers report that their financial situation has worsened because of the crisis.

Commenting on the survey, Rowena Crawford, Associate Director at the IFS, said: 'The current pandemic risks having serious and long-term financial consequences for older workers, affecting living standards into and through retirement.

'The crisis has also been disruptive to major life plans, with one in eight older workers so far changing the age at which they planned to retire.

'Those on furlough are now more likely than those working to be planning to retire earlier and it will be important to monitor that this does not represent a rise in involuntary retirement among people discouraged from finding new work.

'On a positive note, those working from home are now more likely to be planning to retire later; suggesting changes to work practices could benefit some older workers.'

2ndOct
News article

British Business Bank warns of fraud risks with coronavirus business loans

The British Business Bank has warned of 'significant fraud risks' with coronavirus (COVID-19) business loans.

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The British Business Bank has warned of 'significant fraud risks' with coronavirus (COVID-19) business loans.

The Bank recently published a letter to the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, outlining concerns in regard to fraud and the COVID-19 Bounce Back Loan Scheme (BBLS). The BBLS enables small and medium-sized businesses affected by COVID-19 to access finance more quickly.

The British Business Bank previously warned ministers that COVID-19 business loans could be subject to fraud.

Commenting on the issue, Keith Morgan, CEO of the British Business Bank, said: 'The scheme is vulnerable to abuse by individuals and by participants in ogranised crime.

'Alongside the fraud risk, there will be considerable credit risk in the current economic environment, which will be exacerbated by removing significant elements of the credit checks that would otherwise have been undertaken.'

A government spokesperson stated: 'We've looked to minimise fraud, with lenders implementing a range of protections including anti-money laundering and customer checks, as well as transaction monitoring controls.

'Any fraudulent applications can be criminally prosecuted, for which penalties include imprisonment or a fine, or both.'

1stOct
News article

Benefits-in-kind regime 'not fit for purpose', says ICAEW

The Institute of Chartered Accountants in England and Wales (ICAEW) has suggested that the current benefits-in-kind (BiK) system is 'not fit for purpose' for a post-coronavirus (COVID-19) world.

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The Institute of Chartered Accountants in England and Wales (ICAEW) has suggested that the current benefits-in-kind (BiK) system is 'not fit for purpose' for a post-coronavirus (COVID-19) world.

Taking into account the 'new normal', the ICAEW said that the BiK tax legislation is no longer fit for purpose 'in light of the likely increase in employees working from home'.

It stated that responsible employers are likely to permit their employees to choose whether they work from home or in the office, and recommended that employee choice should not be detrimental to the deductibility of expenses incurred by homeworkers.

The ICAEW's Tax Faculty has submitted a series of recommendations to HMRC, outlining improvements to the employee BiK and expenses regime in light of the COVID-19 pandemic.

The Institute stated that the BiK regime needs to 'adapt to accommodate changes in working practices arising from the COVID-19 lockdown', including the introduction of social distancing measures.

Further information can be found here.

30thSep
News article

Criminals exploiting coronavirus pandemic, trade association warns

UK Finance is warning that criminals have been exploiting and adapting to the coronavirus (COVID-19) pandemic, with a growth in fraud and scams that target people online.

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UK Finance is warning that criminals have been exploiting and adapting to the coronavirus (COVID-19) pandemic, with a growth in fraud and scams that target people online.

The trade association's research revealed that unauthorised fraud fell by 8% to £374.3 million in the first half of 2020 as the banking industry prevented £853 million worth of losses.

The amount lost to Authorised Push Payment (APP) fraud was £207.8 million, which was in line with the same period in 2019. Finance providers were able to return £73.1 million of APP fraud losses to victims, up 86% when compared to last year.

However, the growth in online fraud has seen more scams harvest customers' personal and financial details, for example through phishing emails or smishing text messages, which impersonate trusted organisations.

There is often a delay between criminals obtaining people's details and using them to commit fraud, meaning the full losses from COVID-19-related scams in the first half of this year are likely to not yet have been fully realised.

Commenting on the data, Katy Worobec, Managing Director of Economic Crime at UK Finance, said: 'Criminals have ruthlessly adapted to this pandemic, with scams exploiting the rise in people working from home and spending time online. These range from investment scams promoted on social media and search engines to the use of phishing emails and fake websites to harvest people's data.'

29thSep
News article

Furlough scheme set to move into final month

The government's Coronavirus Job Retention Scheme (CJRS) moves into its final phase this October before a new scheme comes into force.

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The government's Coronavirus Job Retention Scheme (CJRS) moves into its final phase this October before a new scheme comes into force.

The CJRS has supported more than nine million people since it was launched by Chancellor Rishi Sunak in March in a bid to protect jobs and businesses during the coronavirus (COVID-19) pandemic.

However, the CJRS will come to an end on 31 October and is set to cost the Treasury over £34 billion.

Following fears of mass redundancies and loss of businesses, the Chancellor recently unveiled a new Job Support Scheme in his Winter Economy Plan. Furloughed employees will continue to get 80% of their salary until the CJRS finishes at the end of October.

During October, the government will pay 60% of wages up to a cap of £1,875 for the hours an employee is on furlough.

Employers will pay national insurance and employer pension contributions and will top up employees' wages to ensure they receive 80% of their pay, up to a cap of £2,500 for the time they are furloughed.

28thSep
News article

Cyber security top risk for audit executives, research suggests

Research published by the Chartered Institute of Internal Auditors (Chartered IIA) has suggested that cyber security is the top corporate risk for audit executives.

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Research published by the Chartered Institute of Internal Auditors (Chartered IIA) has suggested that cyber security is the top corporate risk for audit executives.

79% of audit executives stated that cyber security is a significant risk for their organisation, with 27% singling it out as the number one risk they face.

According to the Institute, the wide-scale shift to homeworking as a result of the coronavirus (COVID-19) pandemic increased the vulnerability of businesses to cyber-attacks. Few businesses had accounted for such upheaval in such a short span of time, the Chartered IIA said.

Commenting on the matter, John Wood, Chief Executive of the Chartered IIA, said: 'COVID-19 has exacerbated existing risks, forcing organisations to think from completely new angles or assign new levels of priority to them.

'Cyber security is a case in point. Though a perennial front-of-mind risk for boards, the rise in remote working means cyber security issues have taken on a new dimension and IT infrastructure has had to adapt in record time.

'The longer-term implications of this exceptional scenario are still unclear, but we should expect disruption to continue into next year and beyond.'

25thSep
News article

Business groups welcome extended coronavirus support

Business groups have broadly welcomed the extended business support measures announced in the Chancellor of the Exchequer's Winter Economy Plan.

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Business groups have broadly welcomed the extended business support measures announced in the Chancellor of the Exchequer's Winter Economy Plan.

Commenting on the Job Support Scheme, Dame Carolyn Fairbairn, Director-General at the Confederation of British Industry, said: 'These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter. It is right to target help on jobs with a future but can only be part-time while demand remains flat. This is how skills and jobs can be preserved to enable a fast recovery.

'Wage support, tax deferrals and help for the self-employed will reduce the scarring effect of unnecessary job losses as the UK tackles the virus. Employers will apply the same spirit of creativity, seizing every opportunity to retrain and upskill their workers.'

Adam Marshall, Director General at the British Chambers of Commerce, said: 'The measures announced by the Chancellor will give business and the economy an important shot in the arm.

'The Chancellor has responded to our concerns with substantial steps that will help companies preserve jobs and navigate through the coming months. As we look past the immediate challenge, more will need to be done to rebuild and renew our economy.'

However, Andy Chamberlain, Director of Policy at the Association of Independent Professionals and the Self-Employed, said: 'The support for the self-employed announced today is woefully inadequate. Although it is right for the Chancellor to extend the Self-Employed Income Support Scheme, the support announced today still excludes one in three self-employed people.

'Limited company freelancers and the newly self-employed almost entirely missed out on support in the last lockdown and have faced bleak months of financial devastation. Now they face a dark winter ahead unless the government does more for them.

'Based on the drastic financial hit self-employed people took in the last lockdown, the new 20% cap on support is likely to be nowhere near enough.'

24thSep
News article

Chancellor outlines Winter Economy Plan

A new emergency jobs scheme will be introduced to protect jobs during the coronavirus (COVID-19) downturn this winter, Chancellor Rishi Sunak has announced.

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A new emergency jobs scheme will be introduced to protect jobs during the coronavirus (COVID-19) downturn this winter, Chancellor Rishi Sunak has announced.

The Jobs Support Scheme, which will replace the furlough scheme when it ends on 31 October, will see workers get up to 77% of their normal salaries for six months.

It aims to stop mass job cuts after the government introduced new measures in its Winter Economy Plan to tackle coronavirus.

The Chancellor said that employees will have to be working for at least a third of their normal hours to qualify for the new scheme, which begins on 1 November.

Between them, the government and the employer will then cover part of their salary for the remaining hours not worked.

The government will cover a third of this sum, capped at £697.92 per month, while firms cover a further third.

The Jobs Support Scheme is designed to sit alongside the Jobs Retention Bonus.

In addition, the Government is extending the Self Employment Income Support Scheme Grant (SEISS). A third grant will cover three months' worth of profits for the period from November to the end of January 2021. This will be worth 20% of average monthly profits, up to a total of £1,875.

Mr Sunak also announced that businesses that have borrowed money through the government's coronavirus loan schemes will be given more time to repay the money.

And a VAT cut for hospitality and tourism companies will also be extended until March. The cut from 20% to 5% VAT - which came into force on 15 July - had been due to expire on 12 January next year.

Mr Sunak said: 'The resurgence of the virus, and the measures we need to take in response, pose a threat to our fragile economic recovery. Our approach to the next phase of support must be different to that which came before.

'The primary goal of our economic policy remains unchanged - to support people's jobs - but the way we achieve that must evolve.'

24thSep
News article

UK economic recovery slowing even before new Covid-19 curbs

The UK's recovery from the Covid-19 lockdown was losing momentum even before the announcement of new restrictions to control the spread of the virus, according to the latest data.

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The UK's recovery from the Covid-19 lockdown was losing momentum even before the announcement of new restrictions to control the spread of the virus, according to the latest data.

The IHS Markit/CIPS flash composite Purchasing Managers' Index (PMI) dropped to a three-month low of 55.7 in September after hitting a six-year high of 59.1 in August.

The survey showed strong growth in Britain's services and manufacturing sectors but also reflected a slowdown in new orders and the weakest confidence about future output since May.

Businesses in the survey said they were reducing staff numbers for a seventh consecutive month - the longest such run since 2010.

Commenting on the data, Chris Williamson, Chief Business Economist at IHS Markit, said: 'It was not surprising to see that the slowdown was especially acute in services, where the restaurant sector in particular saw demand fall sharply as the eat out to help out scheme was withdrawn.

'Demand for other consumer-facing services also stalled as companies struggled amid new measures introduced to fight rising infection rates and consumers often remained reluctant to spend.'