Should we have a partnership agreement?

What is a partnership?


A partnership is established whenever two or more people set up in business together with the intention of sharing profits and losses and do not form either a limited company or a Limited Liability Partnership (LLP). 
Even if they do not intend to form a partnership, if they enter into this type of relationship a partnership is formed.
They are governed by the Partnership Act 1890 unless they adopt a Partnership Agreement or Deed.


Disadvantages of the Partnership Act 1890  


Partnerships formed under the Act are often unwieldy and can lead to disputes between partners. For instance, under the default provisions of the Act:

• A partner is not obligated to participate in the running of the business in any way, which means that they do not have to turn up to work.
• Partners receive an equal share of the profits of the business, no matter how much time of effort they have put into it.
• Partners cannot retire. If a partner dies or decides to leave the partnership, the partnership must be dissolved, assets distributed equally, and then a new partnership (or other business) created. The process is by no means simple, and can be extremely costly.
• Partners cannot be expelled from a partnership.

Advantages of a Partnership Agreement or Deed


However, many of these potential stumbling blocks can be removed by entering into a Partnership Agreement or Deed.


 An arrangement of this kind lets the partners specify the exact nature of their entitlements and obligations, and can go a long way to helping to ensure that the business runs smoothly in the future.


Unlike an LLP or a limited company, a partnership is not treated as a separate legal entity, which means that each partner is jointly liable for any debts of the partnership and is jointly and severally liable for loss or damage arising from wrongful acts or omissions of any partner. 
It has, however, the advantage that the partners will be taxed more favourably, as they are regarded as self-employed rather than as employees.

Directors´ Addresses after 1 October 2009

Present position

Companies Act 1985 requires a directors' usual residential addresses be notified to the Registrar of Companies ("Registrar") and held on public record at Companies House, as well as on the register of directors of every company for which they are appointed.

The only way a director can currently avoid having his residential address made public is to apply for a Confidentiality Order, which may be granted if there is a serious threat of violence or intimidation, for example from political activists or protest groups. 


Where such an order is granted the director is entitled to give a service address to be shown on the public record in place of his residential address.


Position after October 1, 2009


Under the new provisions of Companies Act 2006 coming into force on 1 October 2009, all individual directors must provide a service address for the public record.


 Residential addresses will still be required, but these will be maintained on a separate record to which access will be restricted. 


Directors may give the company's registered office as their address for service. If they give their residential address as their address for service, the register will not indicate that the service address is in fact their home address.


As a result of this change, companies will be required to keep a separate register of directors' residential addresses. 
The 2006 Act prohibits companies from using or disclosing such information, except for the following purposes: 

• for communicating with the director concerned; to comply with any requirement of the Companies Acts as to particulars to be sent to the Registrar; 
• or in pursuance of a court order. 
• The Registrar may also disclose such information to public authorities and credit reference agencies, subject to certain conditions.

There are certain circumstances in which the Registrar will be permitted to put a director's residential address on the public record. These are:

•  (i) if communications sent to the director and requiring a response within a specified period remain unanswered; and 
• (ii) if there is evidence that service of documents at the service address provided is not effective to bring them to the notice of the director. Before he can change the public record, the Registrar must give notice of his proposal to the director (at his residential address) and to every company of which the Registrar has been notified that the director concerned is a director. The notice must specify a period during which objections may be made.

A director whose residential address is put on the public record by the Registrar may not register a service address other than his usual residential address for a period of five years from the date of the Registrar's decision. Therefore, failure to respond to correspondence could have significant consequences.


This change provides extra protection and some comfort for directors worried about their home addresses being on public record. However, the change does not apply retrospectively and so any residential address already on the public record will remain there. Currently there is provision for individuals whose home addresses were placed on the register on or after 1 January 2003 to have those details removed, although the grounds for the application are much the same as those required for a Confidentiality Order; i.e. a serious threat of violence or intimidation. It  seems the 2006 Act will mainly protect new directors, not existing ones.

August 2009 business round up

Pension changes ahead
Under provisions contained in the Pensions Act 2008 employee pension enrolment and employer contributions are to be made compulsory.

Redundancy pay
The weekly maximum pay which can be taken into account when calculating statutory redundancy pay is set to increase from 1 October 2009.

Cutting your fuel cost

The cost of filling your will rise sharply over the coming months following fresh increases in the price of petrol. The price at the pump hit an average of 108p a litre last week - its highest level for a year - beating the previous 2009 high of 107p a litre set in September. Diesel prices have also risen and with crude oil prices heading towards $80 a barrel, the only way prices are heading is up.

What's more, the RAC has warned that if VAT is restored to 17.5% on 1January,  the cost of petrol could reach £1.20 by the end of December.

Here are ways of getting cheaper fuel or making it go further.


Find your cheapest price


Go to www.petrolprices.com to find the cheapest fuel in your area. It covers 9,589 petrol stations and has 8,000 daily updates. The difference between the most expensive and the cheapest price per litre can be more than 15p.


Supermarket promotions are another way of cutting the cost of petrol. Usually they take the form of 'spend £50 in store and get a voucher for 10p off per litre'.


Don't use a pound's worth of fuel to reach a filling station where you can save 50p on a tankful.


Avoid false economy; high-octane brews offer small efficiency gains, cheap rubbish can damage the engine.


Remember the weight issue: the less fuel you carry around the less fuel you'll use, so only buy as much as you need; the low-fuel warning light is sure to make you drive carefully anyway.


Don't be fooled by products that claim to improve economy, be they magnets, magic pellets or snake oil; they don't work.


Aim to fill up at least 50 miles before your tank is dry. That way there is no last minute panic to find cheap fuel.


When the oil price rises or falls, it normally take a few days for the movement to be reflected in petrol prices. So fill up instantly when the oil market rises and try to drag it out when crude takes a tumble.


Car selection


Before you buy, you should consider the car's fuel economy. The difference between a fuel efficient and not-so-efficient £10,000 car can be about £12 a week. You will also save more on car tax under the new car disc rules.


Pump up your tyres.


Think how difficult it is to pedal a bike with a puncture. Keep your tyres at the maximum recommended pressure. and more rolling resistance when your car is moving, which means your engine has to work harder, so more fuel is used. Driving with soft tyres can add up to 2% to your fuel bills.


Go to your local petrol station and use their pump – it is normally free.


Consider low-rolling resistance "eco" tyres when you need new ones. Also have the wheel alignment checked so the car runs easily straight and true.


Lose weight

The heavier your car, the more energy (fuel) is required to move it, so add lightness. Every ounce you lose will save money at the pumps, so throw out anything you wouldn't find on Lewis Hamilton's Formula One car: owner's manual, floor mats, loose change, cuddly toys, lipsticks, old newspapers and magazines, nodding dogs, road atlases, blankets, wellies, "baby on board" signs, tissue boxes, cricket bats, CDs and all the junk in the boot, including the emergency petrol can; replace the jack and spare wheel with a can of emergency tyre foam. Leave the fuel tank as empty as you dare; petrol weighs about 0.74kg (1.6lb) per litre, diesel even more, so a full tank is almost as much of a burden as a hundredweight of coal.


Every extra 50kg increases your petrol consumption by an average of 2 per cent, according to www.save-petrol.co.uk. So keep all your golf clubs – or anything else littering your boot – at home. Remove all excess clutter from your car.


Streamline

• Minimise aerodynamic drag at speed. 
• Keep windows and the sunroof closed and open cabin air vents only to prevent drowsiness.
• Remove roof racks, top boxes, cycle carriers and purely cosmetic body additions with the exception of plastic hubcaps on steel wheels (except in town, where you could lose them to save more weight).

Use Clean Oil


Clean oil reduces the wear caused by friction of moving engine parts, helping to improve fuel consumption. You should change the oil in a petrol car once a year or every 7,500 miles. For a diesel engine it is recommended you change the oil every 6 months or 3,000 miles.


Drive Smoothly


A change in driving habits motorists could save an average of 8% on fuel bills, which equates to £50 to £100 per year on average.

Manufacturers have long claimed that driving more slowly, between 50mph to 60mph, is most efficient - 55mph is industry-wide test speed for best fuel economy on a car. A study for What Car magazine suggested that driving at 40mph was the best speed.

Drivers should also avoid sharp acceleration or breaking when driving. By anticipating traffic flow you can reduce your consumption. Try to slow down gradually at lights, avoid heavy braking and try not to rev too much. Also, if your car has a 'cruise control' setting it can save fuel by using it on longer journeys - it helps iron out unnecessary accelerating and braking.
As soon as you can, accelerate smoothly and gently up to a safe, appropriate (and legal) speed and select as high a gear as possible, keeping the revs down to minimise fuel use without labouring the engine. Between short fuel burns to maintain momentum, lift off the accelerator completely, which shuts off the fuel supply. Never coast in neutral; idling uses more fuel than running in gear on a closed throttle. If you're not moving at all, switch off.

Eco-Driving

If you're likely to be at a standstill for more than three minutes, switch off the engine.

How cool is cool? Air conditioning is less costly than open windows, but it still saps power and can increase the fuel thirst of a small engine by up to 10 per cent. If already fitted you need to run it once a week to keep the system healthy, but this is Britain, not Bermuda - how cold do you need to be? If the cabin gets too hot, fit reflective film to the rear windows/sunroof and take off your hat.


Avoid rough surfaces


Gravel or heavy dirt surfaces can increase your fuel consumption by up to 30 per cent – not to mention the affect on your paintwork. If there is a route involving smooth tarmac, even if it is slightly longer, then take that.


Plan your journey.


It has been estimated that perhaps a third of city traffic is lost or looking for somewhere to park, so plan your journey from A to Z; write a list of directions on a piece of paper (cheaper and lighter than a sat-nav unit) and stick it in an easily visible place on your dashboard or steering wheel boss. Use motorways and free-flowing roads whenever possible; a car is most fuel-efficient at a steady speed.


Don't use the brakes

Brakes turn fuel into waste heat and should be used as little as possible (try never on motorways). Approaching any obstruction, such as traffic lights on red (or green for a long time and likely to change), don't just drive up to it and brake; reduce your speed by lifting off the accelerator, aiming to roll to a stop at the right place. Make driving an enjoyable game of economy and accuracy, like bowls, rather than a test of nerve, like Grand Theft Auto. Advanced tuition will help you drive economically as well as safely.

Use your car less


Combine short trips – such as buying the paper, dropping-off the recycling, or collecting the kids – rather than making multiple short trips.


This article was revised on 8 November 2009.

How do you plan for the future?

What is succession planning?

It is the process of ensuring that a successor is in place to drive the business forward when its owner, leader or other key person leaves (either by choice or by circumstance). It is a process equally relevant to non-profit making organisations. Its goal is the avoidance of uncertainty, missed opportunity and disorganisation during times of transition.

Planning, planning and more planning!

I recommend a three stage approach to succession planning designed to ensure that both you and your business are properly taken care of throughout.

Stage 1 – Talent Management

Developing the strengths and experience of your workforce should be seen as an on-going process rather than a knee-jerk reaction to a specific need or threat. Many business strategists recommend the identification of a pool of talented potential leaders. Within this pool businesses should foster a shared culture and ethos. In turn, this will increase their commitment and understanding of the business. In smaller organisations a pool of potential leaders may simply not exist: the range of successors may be narrowed to that of trusted 'second in command' or family member.

Stage 2 – Options for succession

Ensuring that the successor is best placed to take over the reigns of the business requires careful legal planning. In the grooming stage (stage 1) potential successors may be incentivised by share option schemes (such as Enterprise Management Incentive Options), salaried partner positions and/or company directorships. It is important to get the right balance between achieving 'buy in' to the business and giving away control/ownership. 

I can advise you on the different options available and the practical effects of a potential successor joining your business.

I can also advise on the eventual sale/transfer of your business, whether by way of a formal sale to an existing employee (management buy out) or more informal inter-family transfer.

Stage 3 – Estate Planning and Management

At a personal level there are two particular aspects to consider:

• First, what happens if you are unable to manage your affairs during lifetime for whatever reason – as a result of an accident or illness. This can be covered by completing a power of attorney nominating someone else to handle matters on your behalf.
• The second matter is how your business interests – be they in a partnership, a company or as a sole trader – pass after your death. You will need to balance the interests of the business against the needs of your family. You will also need to consider the impact of any inheritance tax payable on death.

It is important to have a will  addressing these issues in the most appropriate way. You will also need to keep the will under review to ensure it reflects any changes in the tax regime and also in the needs of the business and your family.

Finally, insurance cover may be appropriate. There are numerous life insurance and "key person" insurance products designed to benefit both your family and your business in the event of your death. There can be particular advantages of creating trusts over the policy for both tax and other reasons.

Employment Law update

This update  focuses particularly on :

• An extension to the scope of disability discrimination legislation,
• A Court of Appeal ruling concerning an employer reserving its position in relation to facts which it later attempts to rely on as grounds for summary dismissal.

A Costly Mistake

A tribunal has ruled that an employer is obliged to continue paying a part time bank worker her full time salary, despite a mistake.

The claimant had worked for a bank for a number of years in a part time role and in 2006 there was a TUPE transfer. Prior to the transfer there was an expectation amongst employees that rates of pay would increase. Miss Keenan was on a salary of £9,500 prior to the transfer; afterwards she received a statement that her basic salary was £17,000, which she regarded as a substantial and overdue pay rise. Barclays never queried the discrepancy; the bank even provided a reference confirming her salary when she applied for a loan in 2008. The bank also gave her regular pay rises - including a £3,000 performance-related bonus - without spotting the error.

The tribunal found that the term relating to salary did not have to be substituted by the 'correct' term as the employee had no actual knowledge of the mistake.

She therefore won the right to remain on the higher wage and was not required to repay the £20,000 in extra pay she had so far received as it was entirely due to the bank's error.

Extension Of The Scope Of Disability Discrimination Legislation

The House of Lords has made an important ruling in a recent case which means that employees are now more likely to be able to demonstrate that they have a disability and are, as such, entitled to the protection of the Disability Discrimination Act 1995 (the DDA).

In SCA Packaging Limited v Boyle [2009] UKHL 37, it was held that where an impairment 'could well' have a substantial adverse effect on an employee's ability to carry out normal day-to-day activities, were it not for the fact that measures were being taken to treat or control it, impairment could constitute a disability. Previously, employees were required to pass the more difficult test of showing that it was 'more probable than not' that they would suffer such a substantial effect, were it not for any treatment they may be receiving.

Employers need to ensure that the provisions of the DDA are always carefully considered, even where an employee may not appear to have a 'disability'.

Section 1(1) DDA states that: 'a person has a disability for the purposes of this act if he has a physical or mental impairment which has a substantial and long-term effect on his ability to carry out normal day-to-day activities'.

This definition is key to employers, since all employees who are considered to have a disability for the purposes of the DDA are protected against discrimination, victimisation and harassment before, during and after their employment. In addition, employers are expected to make 'reasonable adjustments' to accommodate such employees.

The DDA sets out a non-exhaustive list of steps which may be taken by the employer in this regard, including making adjustments to premises, allocating some of the disabled employee's duties to another employee and altering the disabled employee's hours of work or training. Whether or not there is a duty in each particular case is very much fact and context-sensitive.

Schedule 1 of the DDA expands upon the definition of 'disability'.

Section 6(1) states that a substantial impairment includes one which 'would be likely to have a substantial adverse effect on the ability of the person concerned to carry out normal day-to-day activities, but for the fact that measures are being taken to treat or correct it'. In other words, impairments not having a substantial adverse effect on an employee's normal day-to-day activities due to corrective measures or treatment may still constitute a disability and be protected under the DDA if the substantial adverse effect would be 'likely' to materialise were those measures or treatment to be removed.

In the case of SCA Packaging Limited v Boyle, the House of Lords considered the meaning of the word 'likely' in this context.

Mrs Boyle had a history of problems with hoarseness caused by vocal nodules. She had been instructed by her medical advisers to adhere to a strict management regime with regard to her condition which included maintaining her hydration levels by sipping water throughout the day, refraining from raising her voice and singing, moving away from background noise, avoiding passive smoking and exercising regularly.

In September 2000 SCA Packaging Limited, Mrs Boyle's employer, decided to remove a partition separating her work space from a larger, noisier area. She complained, with the support of her ear, nose and throat surgeon, that the increased noise levels would adversely affect her health. The company declined to change its decision and Mrs Boyle later brought a claim that her employer had failed to comply with its duties under the DDA. Mrs Boyle was in fact later made redundant brought further claims in this regard.

In order to ascertain whether Mrs Boyle was able to proceed with her case, the tribunal initially had to determine whether her condition constituted a 'disability' for the purposes of the DDA.

The tribunal concluded that without the treatment Mrs Boyle was undergoing, she would 'more likely than not' have suffered from ongoing hoarseness and vocal nodules which would have had a substantial adverse effect on her day-to-day activities.

The tribunal went on to find that she did have a disability.

SCA Packaging Limited appealed against this decision unsuccessfully to the Northern Ireland Court of Appeal. The company then appealed to the House of Lords.

The House of Lords upheld the Court of Appeal's decision and stated that, in addressing the degree of likelihood required under the DDA, the tribunal should have asked whether the substantial adverse effect 'could well happen', were it not for the treatment Mrs Boyle was undergoing.

Previously, it had been generally understood that 'likely' meant 'more probable than not'. The case of SCA Packaging Limited v Boyle is therefore particularly important since the House of Lords has broadened this definition to include any situation where an employee can demonstrate that his or her condition 'could well' have a substantial effect, were it not for the fact that he or she was taking measures to control it. Claimants will, as such, have less difficulty in showing that they have a disability in the future and employers will need to ensure that they are conscious of the protection afforded to employees under the DDA in all situations, particularly given that, as in this instance, an employee's impairment may be concealed because of the measures being taken to control it.

Sympathy Affirms Contract

In a recent case the Court of Appeal has held that where an employer has knowledge of facts which it later attempts to rely on as grounds for summary dismissal, it should reserve its position in relation to these facts. By failing to do this, the employer had affirmed the contract and could not seek to justify the employee's dismissal on this basis.

This case concerned a senior employee who resigned from his role with his employer to join a competitor.

 Whilst his employment contract did not contain a non-compete clause, it did contain a post termination restriction preventing him from amongst other things, soliciting key artists, suppliers or customers.

The employee stated in his resignation meeting that he would not be undertaking any activities in his new role that competed with the business carried out by his employer. He confirmed that he would instead be working on a new record label.

The employee had a six month notice period and during this time a dispute arose between the parties which centred on whether the employee had been honest about whether he would be competing in his new role.

The employee went off sick with stress after being shouted at during a heated confrontation and alleged that he had been treated poorly following his resignation.

Approximately, 3 weeks later, the employee returned to work and disciplinary proceedings were commenced against him. Following the disciplinary hearing, the employee was dismissed summarily for reason of gross misconduct. One of the reasons given for his dismissal related to the fact that he had lied in his resignation meeting in saying that his new employment would not be competitive.

The Court of Appeal held that his employer could not seek to rely on his failure to inform them of his intention to compete whilst in his new employment as a reason for justifying his dismissal. At no stage had the employer reserved its position in relation to this matter and had given no indication, for a significant period, that it was inclined to bring disciplinary proceedings against the employee about his perceived dishonesty. In fact, the employer had attempted to 'smooth things over' with the employee in the hope that he would soon be able to return to work and reminding him of his duties of confidentiality during his notice period.

In stark contrast, the employer had clearly reserved its position in relation to other allegations faced by the employee on which it was entitled to rely as its basis for dismissal.

It is important for employers to note that whilst the employer attempted to smooth things over (in an attempt to avoid a constructive dismissal claim or to exacerbate the condition that the employee was suffering) this could go too far as it may result in a position where an employer has affirmed the contract and then cannot later rely on certain repudiatory breaches of contract by the employee.

In these situations, an employer should reserve its position in relation to alleged breaches if it does not act immediately upon learning of those breaches. However, the judgment in this case leaves unresolved the question of how precisely the employer has to reserve its position although it does appear in this case that the employer simply had to state that 'it was reserving its position in this regard'.

Swine Flu

It has been reported that the government is currently considering allowing workers suffering from swine flu to remain off work for 14 days before being required to obtain a sick note from their GP. Currently, the period after which a certificate must be obtained is seven days.

The government has indicated that this measure could be taken with a view to minimising the risk of the flu spreading and avoiding further unnecessary burden on GPs. It has been noted that this is open to abuse by employees and it remains to be seen how the government will proceed.

Motherhood 'Devastates' Women's Pay

The Fawcett Society has published a new report which finds that although men and women have equal employment opportunities before becoming parents, the birth of a child is the start of a substantial and long lasting divide between mothers and fathers.

The report finds that over 57% of mothers with children under the age of 5 are employed compared to 90% of fathers. It also finds significant pay gaps between the earnings of women with children and those without. In view of its report 'Not having it all; How Motherhood Reduces Women's Pay and Employment Prospects', The Fawcett Society has requested new policies to tackle these issues which may include providing mothers with support when returning to jobs (even part time) at their previous skills levels.

Redundancy Procedure after 6 April 2009

Statutory dismissal procedures were abolished from 6 April 2009, and the new ACAS Code of Practice does not apply to redundancies.

What process should you follow to ensure a fair redundancy procedure under the new regime?

Transitional arrangements continue to apply the statutory dismissal procedures if the employer has issued a step 1 letter or held a step 2 meeting on or before 5 April 2009.

Otherwise we return to the good old days of pre-2004 when dismissals are genuinely for redundancy and where fairness will again be governed by the principles established by case law.

The Consequences

Generally, a redundancy dismissal will be unfair unless the employer:

• adopts a fair basis for selection. It must identify the correct pool from which to select potentially redundant employees, and apply appropriate selection criteria fairly and objectively;
• warned and consult fully with employees, or their representatives about their proposed redundancy. Consultation must be at a formative stage, and employees must be given the chance to respond to the reasons for redundancies, the pools, the criteria and their scores where they are to be selected from a pool, suitable alternative roles, and other ways of avoiding or mitigating the effects of the redundancy. The employer must keep an open mind about the matters under consultation and conscientiously consider the employees' responses;
• consider suitable alternative roles in the group and other ways in which redundancy may be avoided;
• allow employees to be accompanied at consultation meetings; and
• offered redundant employees the right to appeal the decision to make them redundant.

Employers should also ensure that they follow any company redundancy procedure or policy. Where there are 20 or more proposed redundancies at any establishment within a 90 day period, the employer also needs to consider steps for collective consultation and its obligation to notify BIS (the new Government Department for Business, Innovation and Skills formed from BERR and DIUS); these statutory requirements remain unchanged.

ACAS has now updated its guidance booklet on Redundancy Handling dealing with both the statutory requirements for collective consultation and best practice for collective and individual consultation (http://www.acas.org.uk/CHttpHandler.ashx?id=877&p=0.)

Other than the removal of the references to the statutory dismissal procedures, the guidance remains largely unchanged, and the procedure to be followed under the new regime is very similar to that followed pre-6 April 2009 i.e. for individual consultation, a warning letter, followed by consultation meeting(s), a decision letter, and an appeal process if appropriate.

The Government have just announced the cost of redundancies will also rise. From 1 October 2009 the limit of a week's pay for calculating statutory redundancy pay will increase from £350 to £380 (thus increasing the maximum payment from £10,500 to £11,400).

What Do You Need To Do?

• Update any redundancy policies, which may still refer to or be based on the statutory procedures and may therefore be overly prescriptive and inflexible.
• Familiarise yourself with ACAS' guidance on redundancy handling and ensure that general principles of fairness are followed in any redundancy dismissals.
• Employers no longer risk an automatic unfair dismissal for failing to follow a statutory procedure, but do risk ordinary unfair dismissal claims if the process is shown to be unfair or unreasonable. This is a question of fact in each case but the key is to warn and consult, adopt a fair basis for selection and consider any alternatives to dismissal.
• Factor in the increase in statutory redundancy payments (or enhanced payments based on the SRP) based on a maximum weekly pay of £380 from 1 October 2009.

Changes to the U.K. Points-Based Immigration System

On August 7, 2009, the U.K. Border Agency ("UKBA") announced the following changes to the points-based system regarding migrants (any foreign national requiring U.K. work authorization):

Tier 2 (General):

1. Migrants will no longer be required to be on U.K. payroll.

2. Temporary reduction in a migrant's salary and/or working hours in order to avoid redundancies will not require full change of employment action if:

a. the migrant is continuing to work in the same job with reduced working hours;
b. the reduction is part of a company-wide policy to avoid redundancies due to the current economic climate;
c. the migrant's pay or working hours are not reduced by more than 30%; and
d. the arrangement will be in place for no longer than a year.
3. The obligation of advertising the migrant's role to the resident U.K. labor force does not apply in the circumstances below:


a. The job is in the role of director, chief executive or legal partner and the salary package for the job is at least £130,000 or there are stock exchange disclosure requirements.
b. The migrant has been recruited as part of a milk round (a system referring to the rounds that prospective employers make to universities to recruit students a year before graduation) and the sponsor assigns a Certificate of Sponsorship to the migrant on or before August 31, 2009.
c. The migrant will be employed at a higher education institution as a research fellow.


Tier 2 Intracompany Transfer (ICT):

1. A migrant employed under Tier 2 (ICT) must not be directly replacing a settled worker.


2. For short-term transfers where the ICT's salary will be paid outside of the United Kingdom, the UKBA will take into account allowances for the purposes of awarding points and assessing whether the salary passes the appropriate rate test. In acknowledgement of the higher costs of short-term accommodation, the UKBA will take into account accommodation allowances up to 40% of the gross salary for short-term transfers, but only when the migrant is applying from outside the United Kingdom and the Certificate of Sponsorship is for twelve months or less.


3. The qualifying period where the migrant must have worked for the sponsor organization before being allowed to enter the United Kingdom under Tier 2 (ICT) will be extended when the migrant has had a period of maternity, paternity or adoption leave. In such cases, the applicant must have worked with the organization for at least six of the last eighteen months.


Tiers 2 and 5 (All categories):


1. When a migrant is promoted, the sponsor must conduct a fresh resident labor market test, and a new Certificate of Sponsorship must be obtained before the migrant begins work in the new role. A promotion is understood as a change in the migrant's core duties and/or responsibilities, or a change in his/her position within the hierarchy of the sponsoring organization.


2. A change of salary from the level stated on the migrant's Certificate of Sponsorship should be reported to the UKBA, unless it relates to annual increases, bonuses or natural career progressions within the same job, provided this progression is within the same level and is not a promotion.


3. Further guidance has been provided on contract work undertaken by a sponsored migrant who works for a third party on behalf of his/her sponsor. The migrant can only be contracted to provide a time-bound service or deliver a time-bound project. He/she may not undertake a routine role for the third party which is not related to the delivery of the time-bound service on behalf of the sponsor.
Future Developments

Over the coming months, the UKBA will explore the following options to ensure a workable system:

Creating a new employer-led route to allow U.K. businesses to recruit the interns they need; and
Revising milk-round recruitment requirements to achieve a more accurate test of the resident labor market and at the same time better meet business needs.

Getting more sales from existing customers

Turn past customers into your best source of new business

There are two ways to boost sales in your business:

• either get more customers,
• or sell more to your existing customers.

Most businesses focus their time and resources on acquiring new customers but persuading someone to buy from you the first time is really hard.

Existing customers already have a relationship with you and as long as you didn’t screw up, it’s easier for you to talk to them, and sell them something else.

Where most businesses fall down is forgetting to keep in touch. How many one off jobs have you done for a customer who you’ve never spoken to again? It’s probable a number of those customers will have had extra work they COULD have put your way, had you been foremost in their thinking
.
Here’s the secret to turning past customers into your best source of new business (and it’s simple): Build a system to stay in touch with every single customer as long as you can.

Your system should be as easy to execute as possible, and you should automate as much of it as you can. The less you have to do yourself to keep your system ticking along, keeping you in touch with your customers, the better.

Here are some easy ways to do this:

Email newsletters:

Email is the cheapest way of staying in touch with customers. Collect their email addresses and send them something once a week, fortnight or month. Email marketing is also the easiest to automate, using an autoresponder. If you decide to send emails out yourself using your own email software, then ensure emails are sent in small batches. This will help you avoid them being marked as spam. You also need to ensure customers can easily unsubscribe. For the content of the email, avoid blatant selling, and instead focus on giving customers information that adds value. Case studies, news updates and free advice are perfect - and more likely to make your email read regularly. The sales will come in the long-term.

Printed newsletters:


These have made a real comeback in the last few years but they cost a bit more and require more effort. That’s good for the few businesses that can be bothered with the effort. They also stand out in a way email newsletters cannot. Printed newsletters can be a great way to reach high level executives who wouldn’t necessarily read an email. Again, don’t try to sell. Instead focus on good, valuable content that is well written and interesting to read. Using a professional designer and a good quality printer is essential - the best content won’t work if it’s not packaged correctly.

Website content:


Consider starting a blog or putting free articles on your website. It’s smart to link to these articles from your email newsletters. If you operate in a particularly technology-aware industry, you could even do a regular podcast or film video messages and put them on YouTube.

Post things:

Imagine how you would feel if you got something in the post from one of your suppliers, perhaps sending you a free gift for no reason, or maybe even a relevant clipping from a newspaper with a handwritten note. You’d feel really special, right? So do it for your customers. When you send unexpected things for free there is huge business benefit. You build up your goodwill bank. It’s so unusual for people to send nice things in the post, that they are normally well received. The gifts always go down well.

Be consistent:

Whatever you do, find a way to do it to a high quality, and consistently. So many businesses send out one quarterly newsletter – then never send another! That’s no way to build up a consistent stream of marketing. You need to do something month in month out to get the benefit. Make it part of the culture of your business and build simple but formal systems to make sure it happens.

Employment Law - 1 October 2009 changes

From 1 October 2009, the following changes to employment law take effect:

National Minimum Wage (NMW)

Increases in the hourly rates

From 1 October 2009, new national minimum wage (NMW) rates will come into force. The NMW applies to nearly all workers and sets hourly rates below which you must not allow pay to fall.

For pay reference periods beginning on or after 1 October 2009, you will have to pay all eligible workers the following:

£5.80 an hour to workers aged 22 and above
£4.83 an hour to workers aged 18-21
£3.57 an hour to workers aged below 18 who are no longer of compulsory school age

The daily accommodation offset

You will be able to offset from the NMW an amount of £4.51 per day for each day that you provide a worker with living accommodation.

Removal of tips etc. from counting towards the NMW

You will not be able to include in a worker's national minimum wage pay service and cover charges, tips and gratuities that you pay them via the payroll.

The following will continue not to count towards NMW pay:

• tips given directly to a worker by a customer

tronc payments made directly to the worker from the tronc master.
Ineligibility for the NMW for those taking part in certain EC programmes

You will not have to pay the NMW to someone undertaking a work placement as part of the European Community Erasmus Programme or Comenius Programme in respect of work they do as part of either of the schemes.

Statutory Redundancy Pay

From 1 October 2009, the limit on a week's pay for the purposes of calculating a statutory redundancy payment will rise from £350 to £380.

This increase will also apply to a wide range of employment tribunal awards - calculated using a week's pay - that an employer might have to pay, such as:

• compensation for non-compliance with flexible working procedures
• the basic and additional awards for unfair dismissal
• compensation where an employer has failed to consult a trade union or elected employee representatives when it intends to make 20 or more employees redundant
• compensation for failure by an employer to allow an employee to be accompanied to a disciplinary or grievance hearing
• compensation for failure by an employer to give a statement of employment particulars
• compensation for an employer's failure to comply with its duty to notify an employee of either the date on which it intends to retire them or their right to make a request not to retire on that date

This amount is also used to calculate various payments made by the Secretary of State from the National Insurance Fund if an employer's business becomes insolvent.

Examples of such payments include:

• holiday pay
• arrears of pay
• redundancy pay
• pay in lieu of notice
• unpaid compensation for unfair dismissal

The limit normally changes on 1 February every year in line with the retail prices index.

As this change is taking place in October, on 1 February 2010 there will be no change to the limit on a week's pay for the purposes set out above.

Improving your online order value

Generating more revenue for your online store is one of the most important long term goals of any business owner. Careful planning and implementation combine to achieve this.

Although many business owners have an idea of what their sales target (just saying "I want growth" or "I want more sales" will get you nowhere), many do not actually translate that idea into actual, measurable numbers. This is one key to attaining them in the first place.

How can you plan properly to reach a goal if that goal has not been quantified in the first place nor been tested to see if it is reasonable? The answer is you can't. You cannot manage what you do not measure.

Bear in mind that unless you have a plan, a reachable and realistic goal, and unless all those figures are measurable, you might have a hard time getting anywhere.

You are likely to increase your sales using the four strategies below but reaching your end goal in the time span you wish may be difficult if you have not planned properly.

Reaching sales targets can happen in several ways.

1. Increase traffic to your site at your current conversion rate.
2. Increase the customer average order value working with the traffic you already have.

Here I will focus on point 2 which above says that you can increase the sales your store generates without increasing traffic at all, but by increasing the average order value based on the amount of traffic your site already receives.


Here are 4 ways to increase your customers average order value.


Increase Product Price

This is the most obvious method but you must understand what your market is willing to pay and be aware of what your competitors charge. You can offer a similar or same product at a premium price to competitors as long as you differentiate yourself in some form from them. You must make the customer see the perceived value of your product is better than they would receive from a competitor. This can be accomplished by a number of ways.

Cross Selling of Similar Products

Cross selling products just because you can is a bad idea. Often you see store owners cross selling unrelated products in an effort to increase sales.  Cross selling only works when the products are related but often has exactly the opposite effect when the products have little in common. Would you click on a pack of batteries that were being cross sold to you if you were originally looking at a shirt and trousers? I doubt it as the two are completely unrelated. The primary goal of cross selling should be to increase the customer's average order value by offering them a related item which they can add to their cart in addition to the item they are currently viewing.

Free Shipping offers with constraints.

It's no secret that free shipping works. In fact the majority of internet shoppers expect free shipping in some form. You can take advantage of this and also increase your average order value by offering free shipping for orders that reach a certain threshold. If you want your average order value to be £30 for example then you may want to consider offering free shipping for all orders £30 and over.

Create product bundles.

A great way to increase your average order value is to develop combinations of products that when bought separately would cost more. For example, let's say you sell Apple ipods. You have an ipod Nano for £149.95 and a car adapter priced at £54.95 (a separate cross sell). These items are likely to be purchased together yet when purchased as individually a customer would have to pay a total of £204.90. By creating a bundled product including both items for just £175, you increase your order value from what could have been just £149.95 to a better £175. Think of it as cross selling at a discount. Providing you've priced it correctly, your customers will see it as a deal that can't be missed.

These are just a few examples of the ways you can increase the average order value of your customers and thus increase the revenue your store generates. With proper planning and implementation you can achieve an average order value with your current traffic levels that will put you well on your way toward reaching your ultimate sales targets.

Improving your telephone interviews

Phone interviews are increasingly common today chiefly because they are so convenient. Mobile phones in particular make reaching people very easy. Too many candidates and not enough time on the employer’s part also contribute to this trend. Phone screening helps weed out wheat from the chaff. With candidates easily outnumbering available opportunities, it’s in a company’s best interest to “screen out” as many as possible before granting a face-to-face meeting.


Many people don’t realise the telephone interview is as important as the interview itself. It is crucial and it also requires a different skill set than a face to face interview. On the phone, you have a limited time frame to make that “first impression” and to convince the interviewer that YOU should be in their office selling your abilities as the answer to their problem. Getting that interview through a phone screen can be difficult. Phones are not a comfortable medium and are one dimensional in scope. You are just a voice. There is no “person” to view, no body language to read, no smile to respond to, and no eye contact to make.

Because of these obstacles, many candisates are more nervous in a phone interview than in the face-to-face meeting itself. Here are some ways to be prepared and to capitalize on that unexpected phone call that may be the door opening to the career or contract of your dreams.


EXPECT THE UNEXPECTED


No one can know or predict when the phone will ring. It may be at a convenient time, but all too often it occurs at a time less than ideal. Another thing to consider is that you never know who it may be representing that particular employer or potential customer. It may be someone from their human resource department, a professional recruiter working the assignment for the company, the manager the position reports to, or maybe even the owner of the company. You should be prepared for any eventuality and the level of professionalism should be the same regardless of who is making that initial call.


THE FIRST IMPRESSION STARTS IMMEDIATELY


What I mean by this is simple. The message on your phones - landline and mobile - in case you don’t answer is of crucial. Make sure it’s professional. Having a clever, funny, unusual or smart aleck message will NOT impress. Yes, your friends and family think it’s funny and maybe it’s the “real you” in a social setting, but “business is business”. The phone interviewer will not be amused and may not even leave you a message.

BE PREPARED AND ORGANIZED, ALWAYS

This starts from the minute you answer the phone. Know WHO you are talking to. Don’t assume, be sure. If you missed their introduction and it’s unclear to you, after introducing yourself, politely ask their name again and title, and write it down.

If they’ve caught you in a social setting, excuse yourself and find a private place to carry out the phone interview. If that isn’t possible, establish a solid time for them to call you back or for you to call them and write it on your calendar immediately. Noisy environments lead to missing crucial information, questions, and voice cues you need, so an environment where you can listen and concentrate is vital.


If the call arrives when you are at home, tell everyone in advance (spouse, family, kids) that if you are on the phone they need to leave or remain quiet until you are finished. Seek privacy if that is more convenient and a better solution. Music, the TV, boisterous kids and in general, noise, are distractions not only for you but more importantly for the individual screening you on the other end of the line. Make sure they take your candidacy seriously.

Have what you need by the phone at home for the unexpected call, including a copy of your resume, your documentation of accomplishments, the job descriptions of positions for which you’ve applied, and a note pad and a pen to take notes. If you’re out and about, keep those items handy and in a briefcase or handbag.


AS YOUR PARENTS TAUGHT YOU, MIND YOUR MANNERS

The old adage “familiarity breeds contempt” may apply, or it may not. It’s always best to err on the side of safety. Being too casual early on may be to your disadvantage. Before using a first name, ask if it’s appropriate.

Don’t swear! One more piece of advice: do not use any terms of familiarity you use with friends or family.

DO NOT RAMBLE

Be concise and direct. Answer questions in detail, but don’t overdo it. The phone is an interesting tool. It’s easy for people to stop listening or become distracted from your words if you don’t keep them listening. Long, rambling answers make people impatient and their inclination is to tune out. There’s an unwritten law of phone etiquette during an interview. Tell them the time, don’t build them a clock.

IF YOU DON’T ASK, YOU DON’T GET

I’m going to use a sales term now. CLOSE. What I mean here for the non-sales candidate is simple. Ask for the interview or meeting and do your best to get a commitment. A “yes” is good, but even better is an actual date, time and place. Asking may work and it may not in that initial phone screen, but I will guarantee one thing: if you don’t ask, the odds in your favour drop dramatically. Also, immediately send by email or regular mail a follow up letter.

SLOW DOWN!!

In person, people hear and comprehend much faster than they do on a phone. Why? In a face-to-face situation, your eyes, smile, appearance, facial expressions, and body language give visual cues. The phone is a voice medium. Your voice is your only tool. To use it effectively, slow your speech pattern down just a bit, speak loudly enough, modulate, and enunciate clearly. If they can’t hear and understand you, they won’t listen, concentrate on the importance of your words, or believe you.

PROJECT

Sit up straight in your chair or stand while you speak for good breath support. Smile as you talk. You can hear a smile on the phone to some extent. Keep your enthusiasm level up and project it through your voice. Even use your hands while you speak if you are given to doing that in person. It helps with energy and inflection. Speaking of inflection, try to avoid letting the emphasis you place on your words go in an upward direction at the end of a sentence that’s actually a statement. It makes you sound like you’re asking a question and signals uncertainty.


If you use some of these tips, the increasingly popular phone interview could be just the first successful step in a long line of interviews leading to the job or contract of your dreams.

Improve your assertiveness

There are six main steps that can be taken to improve your assertiveness:

Know the facts of the situation and have the details to hand.

You automatically put yourself in a position of strength when you are in complete control of a situation rather than having half the story and having to ‘wing it’. Whilst many of us cope in this situation, our behaviour can turn to aggression as we try to compensate for our lack of knowledge.

Anticipate the other person’s likely behaviour and prepare your responses.

Envisioning a situation, mentally rehearsing the scenario and how you would deal with the other person is a strategy employed by the most successful negotiators.

Prepare and use open questions to open a discussion. Open questions tend to start with who, why, what, when, where and how and are designed to elicit a response that includes some information. Asserting your authority means using your questioning and listening skills effectively, not simply stating your point of view in a domineering manner.

Practice your responses to aggression. The offices of successful people often contain some kind of poster referring to positive attributes – it’s a way of reinforcing their self image of being a person in control, confident and emphasising a positive posture.

Have faith that your abilities and style will work for you.

Assertive behaviour is not the behavioural type that many of us display 24/7 as we are affected by the environment we operate in. The old adage is that ‘practice makes perfect’; in fact what practice does is to programme your brain to believe that the result achieved will be achieved again. In other words, if you practice something and start to develop the results then you can believe that you will get the same result next time through employing the same techniques.

Feel sympathy for bullies and those who take an extremely aggressive stance in any discussions or negotiations.

Bullies don’t need to be feared; they are little people inside and should be supported by professional counselling.

Summary


The aim of assertive behaviour is to communicate productively. By remaining calm, being honest, sticking to the facts of the situation, and listening carefully to other people, you will ensure a more fruitful relationship with peers, staff and clients.

There are many situations in which practice managers need to be assertive; one of the most common is when giving and receiving feedback.

Everyone Should Have a Properly Drafted Will

Everyone Should Have A Properly Drafted Will



But only about a third of the population actually makes a Will. Even out of those who do make Wills, a substantial number simply buy a form from a law stationer for a couple of pounds for a "do it yourself" job. Our aim here is to explain to you why everyone should have a professionally drafted Will, to describe some of the problems which arise if people do not make Wills or rely on home-made efforts..

Intestacy

If you die without making a Will you are described as "intestate". In this situation the law prescribes a set of rigid rules for the division of assets between your spouse, any children and possibly other relatives. These rules of "intestate succession" virtually never correspond with the arrangements which a properly advised person would include if they were making a Will. The intestacy rules come on a "one size fits all" basis which means that they fit virtually no family we know.

What About Home-Made Wills?

These have generated an enormous amount of litigation over the years, with families arguing over the interpretation of unclear or incomplete instructions.

Choice Of Executors

Your Will enables you to select the people who should handle your affairs after your death - either your spouse or other family members, professional advisers or close friends.

Guardians

Perhaps the most important choice parents can make is selecting people to be guardians for their young children. While a surviving parent will normally act as sole guardian, if children are orphaned it is essential that you have chosen the right people to take day-to-day care of them. In case the people you choose are unable to take on the responsibility we recommend you also nominate reserve guardians. Guardians are usually different people from the executors, the latter being responsible for the financial side of looking after the family.

Achieving A Balance In The Family

People making a Will have to balance up competing interests in the light of their own family situations and resources. For example:

One or more children may have special needs
Your children may be very young and estate funds may need to be invested for their benefit for many years
There may be children from a former marriage
You may have concerns about the stability of your children's marriages and possible claims by a son-in-law or daughter-in-law
You may have doubts about the financial stability of your children in which they may need protection against dissipating the funds
You may be concerned that family assets will be lost if the surviving spouse remarries
The surviving spouse may have very substantial resources of their own
You may want to leave legacies to particular people to whom you feel grateful
You may want your personal belongings divided between the family in a particular way . You may have aged parents or other relatives for whom you need to provide
.
Business Arrangements

You may be a shareholder or partner in a business, and there may be special terms in the articles of the company or partnership agreement. Then the provisions in your Will need to be integrated with what you have agreed with your partners or co-shareholders. Perhaps you and they have never considered what would happen if one of you died. Could that compel the survivor to buy out the estate of the deceased, or force a sale of the whole business? You need to set up fair and workable arrangements to avoid a crisis or arguments in the future.

Shares in trading companies and most business assets attract Inheritance Tax Business Property Relief. In most cases the relief is 100%, which is equivalent to complete tax exemption, and is thus extremely valuable.

The provisions in your Will need to be integrated with your commercial arrangements, and structured so as to maximise Business Property Relief.

You may be the sole proprietor of a business, in which case I can help you to think through the arrangements which would apply on your death - should the business be sold or carried on, what arrangements would be made for the staff, and how would your beneficiaries achieve maximum benefit from what you have built up?

Special Property And Foreign Property

Your estate may include assets which need particularly careful handling on your death - for example, literary copyrights and patents, foreign assets, jewellery and other chattels of particular value, and much-loved pets.
If you own property abroad, such as a holiday home, you will need a Will in that country, and ensure that your English Will and your foreign Will do not accidentally revoke each other.

Inheritance Tax Liability On Your Death

Under present Inheritance Tax legislation the first band of your assets ("the nil rate band") passing to your beneficiaries is tax free. Above that, Inheritance Tax is chargeable at a flat rate of 40%. This is subject to various exemptions, the most important of which cover assets which pass to your spouse, business assets as already mentioned, and bequests to charity.

I will be able to calculate the potential Inheritance Tax attributable to your estate but  will need you to complete a questionnaire. In particular, if you have been married (or in a civil partnership) and your spouse (or civil partner) died before you, I will need information about their estate as well. . If they did not fully utilise their nil rate band it can be carried forward and added to your nil rate band which can reduce your estate's Inheritance Tax liability. The same information is required if you have been married (or in a civil partnership) more than once and that person died before you.

I will also discuss with you whether action can be taken during your lifetime to avoid the Inheritance Tax which would otherwise be payable on your death. There are a variety of arrangements which I use successfully for many clients and will be pleased to discuss these with you in more detail.

People Who Need Protection

When you think about it, many families include people who need particular protection, whether minors, those with disabilities, aged relatives, or children who are "not good with money". Some of these problems may be short-term, as in the case of children who will hopefully grow up to be mature individuals and able to look after their own funds. Others may be permanent and require solutions which will endure for the long term, as in the case of children with disabilities. Many of these problems can be solved by the use of appropriate family trusts incorporated into your Will, arrangements which can be as simple or complex as the case requires.

The Finance Act 2006 introduced major changes in Inheritance Tax. The new measures are complicated and have a wide impact on the whole field of Wills, estates and trusts. It is still possible to postpone your children inheriting capital beyond the age of 18. However, the ability to do so can incur a new Inheritance Tax charge at a maximum of 6% every 10 years. The Inheritance Tax charge will depend upon the age you wish your children to inherit the capital and there are ways in which the Inheritance Tax charge can be reduced and I can advise you on these options in detail.

Life And Pension Policies

Most people have life and pension policies, and usually pension policies include death benefits in case you die before reaching pension age. Sometimes the amounts payable under these policies and death benefits can be as big as the rest of your estate or greater.

In addition, if you should die before retirement, these benefits can usually be paid out to your heirs free of Inheritance Tax, which makes them even more valuable.

It is essential that the arrangements for dealing with these should be integrated with the other provisions in your Will. I will suggest a review of your policy documents to check whether they have been written in appropriate trusts and to ensure that policy benefits are treated in the most tax-effective way possible and directed to the right beneficiaries.

If you were planning to take out a new insurance policy and put the proceeds in trust for your family so that the policy money is not subject to Inheritance Tax on your death, I will advise you on the process and how to ensure this can be undertaken without additional Inheritance Tax charges.

Joint Property

English law provides two ways of holding property, particularly land and houses. If you and your co-owner are "joint tenants" the property goes automatically to the other person on your death, irrespective of what you have said in your Will. If you are "tenants in common" your interest in the property goes to the beneficiaries of your Will and not to the co-owner. It is essential that any important property holding, such as your home, be reviewed so that the property passes in accordance with your wishes and not by an automatic legal process.

Claims Against Your Estate

Generally English law allows people to choose who they want to benefit by their Wills, and for what amounts. However there is an opportunity for the court to intervene under the Inheritance (Provision for Family and Dependants) Act 1975 if reasonable financial provision has not been made for certain people. When you make your Will I will consider with you whether there are any possible claims of this kind and how best to deal with them. I also regularly advise claimants who may have possible rights under the 1975 Act. Where someone has made a Will under duress or unreasonable influence the Will may be challenged by a disappointed beneficiary and set aside by the Court.

If you wish to give a major benefit to someone who is not a family member, or to "cut someone out", there are steps you can take to reduce the risk that your Will may be challenged. These are areas in which I will be glad to advise, in strictest confidence of course.

Flexible Arrangements

It is quite impossible for some people, in their particular situations, to lay down a hard and fast set of rules for division of the estate. Assets may be changing in value, the personal circumstances of your beneficiaries may be subject to fluctuation, or you may expect your own personal circumstances to change over a period. In this situation a Will trust may give invaluable flexibility to your estate. Where discretionary trusts are used  I will normally assist you to prepare a detailed Letter of Wishes explaining to the trustees how to deal with your estate in changing circumstances.

Making It Valid

Every year there are press reports of disputed Wills, whether because they are not executed correctly or because the testator has been improperly influenced, or the Will did not express their intentions correctly. Part of my job when helping you to make a Will is to ensure that it is valid and that your family will not be involved in expensive and embarrassing litigation.

Reviewing Your Will

Your family circumstances change. A child or grandchild may have been born, there may have been a divorce, or a relative may have died. You may no longer own assets you owned a few years ago or you may have acquired new possessions. The law - particularly tax law - changes regularly. All these things may affect the arrangements you have made in your Will. So it should be reviewed whenever there has been a significant change in family circumstances and in any event at least every five years. And remember that marriage automatically revokes your Will, which will need to be rewritten, and on divorce all references in your Will to your former spouse are automatically deleted.

The Living Will And Personal Welfare Lasting Powers Of Attorney

Many clients are concerned about the medical treatment which might be administered if they become seriously ill. They want the opportunity to express their views while they are still in good health. I do not produce my own Living Will document but have proforma documents produced by charities which you can complete with the assistance of your General Practitioner.

Also, you can now make a Personal Welfare Lasting Power of Attorney and I can advise you on the implications of this document.

Lasting Powers Of Attorney

On 1 October 2007, Enduring Powers of Attorney were replaced with two different documents, each called a Lasting Power of Attorney. One relates to personal welfare and the other to financial matters. You should consider making a Lasting Power of Attorney, appointing who you would like to look after your affairs in the event that you are unable to do so yourself, perhaps because of a serious illness or incapacity. You could also make a personal welfare Lasting Power of Attorney which allows your attorneys to make decisions about personal care, welfare and medical treatment, for example.

If you made an Enduring Power of Attorney prior to 1 October 2007 this will still be valid and does not have to be replaced with a Lasting Power of Attorney.

Lifetime Trusts

As well as including provisions in your Will, it may be appropriate for you to set up a lifetime trust, either to protect family members or to mitigate tax.

Again, the Finance Act 2006 introduced major changes in Inheritance Tax and its impact on the creating of trusts. I will  advise you on the Inheritance Tax implications of creating a trust in certain circumstances, but in any event you can still create a trust and transfer assets to it up to your nil rate band without incurring an immediate Tax charge.

Small Business Startup : Public Relations

Employing a public relations specialist is a luxury that the majority of SME’s cannot afford. They will often out-source PR projects because they do not have the skills in-house to effectively manage them. If you have a good PR skill set then you will always be in demand and could easily start your own business from home.


Skills needed:


The most important asset you will need is the ability to communicate an idea or message successfully. Excellent oral and written skills are necessary for this, along with a creative personality. It will help you to have had a background in PR, but there are no real barriers to entry for talented graduates with degrees in public relations, advertising or marketing and an impressive portfolio.


Business Environment and Set-up Cost: 


This business can be run from your own home and start-up costs will be minimal if you already own the equipment (computer, software, scanner, fax and printer). You may require some powerful image editing software such as Adobe PhotoShop. There will also be some costs involved in designing, developing and hosting your website. Depending on how much of this you already own, the overall cost will vary from under £1000 up to £4000.


Marketing Techniques:

• Promote through related mailing lists and newsletters or start your own.
• Submit your site to search engines and consider joining popular pay-per-click schemes
• Target local businesses in your region as this is where most of your work will come from.
• Make sure your business is listed in regional online business directories.
• Get as many links as possible on websites and directories relevant to your target market.

Complimentary business idea: 


Offer other marketing services like customer surveys and product evaluations then cross-promote these to your existing customer base.


Notes: You will be entering a very competitive market due to the few barriers to entry. It is important you provide the highest quality service possible. Do not take on more work than you can comfortably handle by yourself or you will end up letting down your customers.

Privacy notices guidance

Businesses will welcome new guidance from the Information Commissioner’s Office (ICO) on producing user-friendly privacy notices that comply with the law. Privacy notices set out how the information your organisation collects about someone – for example, because they complete a paper or online form – will be used.

Following a public consultation earlier this year, in the light of consumer research showing that half of consumers do not understand what they are signing up to when they fill in online and paper forms, the ICO has published a new Code of Practice that will help organisations provide more user-friendly privacy and marketing notices.

The guidance reminds businesses that personal information is required by law to be processed fairly, and a privacy notice should state:

• the identity of the organisation in control of the processing;
• the purpose or purposes for which the information will be processed; and
• any further information necessary, in the specific circumstances, to enable the processing in respect of the individual to be fair.

In addition, the ICO has produced a checklist to help small businesses decide if they need to provide a privacy notice to their customers (eg where customers do not already know who they are or what they will do with personal information, including disclosing it to a third party).

Download the Code of Practice and small business checklist from the ICOwebsite

Late Payment Interest : Ruttle Plant Hire Ltd v DEFRA

In tough times 'cash is king'. Deterring late payers is one way of improving cash flow. Since 2002, businesses of any size have been able to charge penal interest on unpaid invoices under late payment legislation. The Late Payment of Commercial Debts (Interest) Act 1998 and associated Regulations are designed to discourage late payers by imposing a high rate of interest on commercial debts that are not paid on time. Currently, the statutory rate is a hefty 8% above base rate and if the customer does not pay up, the supplier can claim it through the courts.

To claim statutory interest the supplier must notify the customer of the sum due and what it relates to. But what if there is some uncertainty about the amount due or the invoice sent to the customer is defective in some way? Can the customer sit back and pay nothing and avoid statutory interest by claiming that the invoice is not completely perfect? The Court of Appeal examined this question in a judgment handed down last week.

The case of Ruttle Plant Hire Ltd v DEFRA ((No 3) [2009] EWCA Civ 97; [2009] WLR (D) 75) late payment interest on a contract to supply plant and machinery to combat the outbreak of swine fever in August 2000. Ruttle undertook decontamination work for the Government, digging disposal pits on farms, and the contract was arranged in such a hurry that the terms were not fully settled. In early 2001 there was an outbreak of foot and mouth disease and Ruttle was assigned to that work too. Ruttle was doing so much work that it had to suspend its invoicing process. Subsequently, the parties got into a dispute about how much the Government owed Ruttle for the work, when the debt fell due and how much interest was payable. Ruttle issued proceedings for some £5 million in interest, mostly claimed under the late payment legislation.

The High Court ruled that interest under the late payment legislation did not run until the paying party had received proper notification of the amount due. The parties had argued about the rates payable and Ruttle had ended up reissuing certain invoices. The High Court denied Ruttle some of the interest claimed and, to the extent it did allow interest, it reduced the rate right down to 2% over base.

Ruttle appealed successfully. The Court of Appeal noted that all of the invoices issued by Ruttle had been supported by documentation detailing the hours worked and the machinery used, so DEFRA could have worked out what it considered was payable to Ruttle. The relevant section of the legislation gives two alternatives for triggering statutory interest: the date on which the purchaser is given either (1) "notice of the amount of the debt", or (2) "(where that amount is unascertained) the sum which the supplier claims is the amount of the debt". The latter, said the Court of Appeal, meant that a provisional view of an amount due fell within the legislation. If the sum due is not ascertained, the supplier just has to give notice of what he claims to be due. The legislation did not require the invoice to be perfect before interest could run. Otherwise, the paying party could look for the smallest detail of error in an invoice and, if he found one, he could delay payment of the whole sum and avoid the statutory interest. This made no sense and would frustrate the purpose of the legislation. The wrong invoice might result in a reduced amount of statutory interest being awarded, but there was no need to read the 'amount' as meaning 'the true amount, the whole true amount and nothing but the true amount'. The Court of Appeal observed that in the real world errors in invoices were common and that was why they were often accompanied by underlying documentation so that the paying party could check.

So, as the customer, what should you do if it is unclear whether an invoice is correct? In this situation, the Court of Appeal advised, the customer should pay the minimum he considers to be due, and ask the supplier to substantiate the rest. If there is supporting documentation, at the very least, any reasonable customer should make a spot check and, if all seems well, pay up and check the fine detail later. What a customer cannot do, is withhold all payment and expect to escape punitive interest on sums which are due on any view. It would be different if the contract said that nothing was due, unless a correct invoice was supplied, but that was not the case here.