How to build an Ethical Business?

The new generation of professionals is concerned about corporate social responsibility (CSR) and wants to work for ethical businesses. 

The ethics of any firm are determined by its actions. If bending the rules results in rewards for some people as a result of increased short term revenue, or other perceived benefit, then many in the business will rightly believe that ethics don't matter, performance does. In other words, the end justifies the means. There will almost always be a tension between doing the right thing versus prioritising short term gains.  

Here are some tips to help you to build a more ethical business.

1. Be someone who you would want to discuss business with

If someone has a history of unethical behaviour, you will probably decline the opportunity of doing business with them. Sacrificing ethics usually means that someone (a supplier, for example) is getting a rough deal. Do you want your firm to be associated with this type of behaviour? Is it worth the potential reputational damage?

2. Accountability

Everyone in the business should be accountable for their actions. Management should lead by example and should own their mistakes as well as their successes, earning the respect of staff. Unethical behaviour should not be tolerated.

3. Values

Business leaders must take time to understand their own personal values and those of the team, what the value statements of the firm should be and identify gaps that exist between aspirational goals and current behaviour. To ensure buy-in and commitment from the whole firm, try to include members from various levels across the business to help create a "Code of Conduct" that is aligned with the firm’s ethical vision.

4. Establish Trust

Build an environment of trust with employees in order to create a business culture where employees feel free to discuss ethical dilemmas and issues with management.

5. Communicate 

The management team should ensure that the vision and code of conduct are communicated to everyone within the business. This can be done through policy manuals, training, internal newsletters, team meetings, etc. Efforts must be made to gather feedback from across the business in order to identify employee concerns regarding the ethical environment within the firm. This should be a continuous improvement process to identify concerns and improve the overall ethical direction of the firm.

APJ Accountancy

☎ 020 89310165 | ☏ 07900537459 | ✉ info@apjaccountancy.com 

Personal Savings Allowance Updated!

From 6 April 2016 the amount of any Personal Savings Allowance you’re entitled to will be based on your adjusted net income.

For every £2 that your adjusted net income exceeds £100,000, the £10,600 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.

From April 2016 HM Revenue & Customs (HMRC) is introducing a tax-free Personal Savings Allowance of £1,000 (£500 for higher rate taxpayers) for savings income or interest.

The new allowance means that most people will no longer pay tax on their savings interest.

More information at Adjusted net income Guidance

Remove The ‘Time Vampires’ & Multiply Productivity

I’ll admit it’s something I have struggled in the past to manage on an ongoing basis, but as the business owner it’s important to take complete control over the use of your time.

Much has been written on the effective use of time and how it affects productivity, but what I want to do is give you a few tips that have helped me and my team (and especially me, over the last year or so), so you too can apply them to your working day.

I believe I have at least doubled my productivity in the last year and most of this gain has been achieved by eliminating ‘Time Vampires’ from my daily routine.

There are a number of Time Vampires, ranging from staff, family, friends, your mobile phone, travel and your office phone. But by far the worst is EMAIL. For many people, EMAIL is the biggest, most destructive Time Vampire. It rules their day and massively reduces productivity.

Obviously email is a great business tool but for many it’s got out of hand. Think about it…

What do you do first thing in the morning, and last thing at night?

If you’re like most people, you turn your email on first thing and look at it last thing.

If that’s close to what you do with your email, then unfortunately EMAIL IS RULING YOU—NOT THE OTHER WAY AROUND.

It’s not easy to change a habit like this, but if you want to take back control of your working day (and weekends) you have to figuratively speaking drive a stake through the heart of your email and make it your slave.

Here’s how to do it…

TIP #1: DON’T TURN EMAIL ON FIRST THING IN THE MORNING

You want to get your day off to the best possible start and in the most productive way. Therefore, you MUST NOT turn your email on first thing in the morning.

Instead, wait at least 2 to 3 hours.

This gives you quality time to work on the business in the best frame of mind. You don’t want to be reading and replying to emails. Worse still, a bad email can derail your entire day.

TIP #2: KEEP IT TURNED OFF

You should only open your email two or three times a day. Once you’ve done what you need to do with the emails, then CLOSE your email programme down.

DO NOT leave it on, even in the background. Emails popping in is a massive distraction and interrupts your work.

TIP #3: DON’T LOOK AT YOUR EMAIL LAST THING AT NIGHT

The temptation before going to bed is to look at your emails. Get out of this habit. Everything can be sorted the following day (remember, not first thing: do it 2 or 3 hours later!).

This takes real discipline and you can quickly revert back to old habits, but work on it and you’ll see a massive difference in your productivity!

Pushkar

☎ 020 89310165 | ☏ 07900537459 | ✉ info@apjaccountancy.com 

Proposal to restrict tax relief for travel expenses for IR35 workers!

One of the controversial measures included in the draft Finance Bill 2016 was the proposed restriction of the deduction for travel and subsistence expenses incurred by certain workers caught by the IR35 rules. This proposed change was consulted on during summer 2015 and, if enacted, will significantly restrict the tax relief available for those affected.

The original proposals have been toned down to a certain extent and will only apply if the IR35 rules apply to the engagement and there is supervision, direction and control (SDC) over the worker. This now seems to be the key test to determine whether the new rules will apply and ignores the other employment status factors. The examples in the consultation document seem to suggest that if there is no expertise within the end user organisation then there is likely to be limited SDC and the worker will be entitled to relief for travelling to the client’s premises.

Any tax debt arising from the deliberate misapplication of the rules is to be transferred ‘jointly and severally’ from the ‘intermediary company’ to its director(s). It would appear that the ‘engager’ will not now be liable, which was one of the proposals in the consultation. It is intended that these rules will be implemented where it can be shown that the ‘intermediary’ had knowingly failed to apply the rules correctly.

Please get in touch with us if these new rules are likely to have an impact on your business.

☎ 020 89310165 | ☏ 07900537459 | ✉ info@apjaccountancy.com 

Implementing a BYOD Policy

Bring your own device or “BYOD” 

A relatively recent trend that allows employees and employers to access company data and email through personal devices such as mobile phones, laptops and tablets. BYOD is frequently used by businesses as a way to increase work efficiency and reduce business cost and for enterprise mobility. However, if you want to utilise BYOD in your business you should have an appropriate policy in place.

What Happens without a BYOD Policy?

Without a BYOD policy, employees will have the freedom to access company data in whichever way they like, especially if needed after office hours. This means the use of personal devices to send and retrieve emails, download company's files and edit documents. Such practice could expose a company's confidential data and could be detrimental to the business.  Every device has its own security settings and configurations. As such, your business needs to set out its minimum data security requirements in order to manage business risks.

Creating a BYOD Policy

You should consider what is expected of your employees, the data they can access and develop appropriate training to ensure staff fully understand how BYOD works in the firm. Your BYOD policy should address the points outlined below.

Acceptable Use

This section of your BYOD policy should set out what can and cannot be used when utilising company online access points as well as outlining restrictions and limitations.

Devices and Support

The device models that are permitted and have been checked by the IT department should be set out in the BYOD policy. Ideally, your IT manager should have the capability to remotely wipe a device in case it is lost or stolen.

Reimbursement

The full or percentage of cost (if any) that the company will reimburse employees for purchasing a new device.

Security

The environment in which the device can be used, which includes strong passwords, and non-usage of rooted or “jail broken” devices. In many instances it makes sense to install an app or software programme on employees’ devices in order to allow them to securely access company data.

Risks and Liabilities

The BYOD policy should clearly communicate that using personal devices for work comes with risk that the employee must accept and assume full responsibility, in line with company requirements.