As we move into the second quarter of 2016 it is a good time to take stock of your piles of papers, documents and statements and assess what can be shredded, what should be kept and what can be saved online. This guide will help you to decide what to do with all of your paperwork and prevent it from piling up around you.

Things that should always be saved

There are some types of documents that will never be replaced by online copies – you will always need originals of certain important papers. It is a good idea to invest in a safety deposit box or a fireproof safe to ensure that these items never get damaged, stolen or lost.

Remember – safety deposit box can be useful, but they are only accessible during banking hours. Some of these documents could require immediate access.

Always Save Physical Copies Of the Following:

• Birth certificates for all family members
• Marriage licenses and/ or divorce decrees
• National Insurance Card (if you have one)
• Pension plan documents
• Copies of your investment portfolio
• Military records and discharge papers
• A copy of your will, living will, health care proxies, powers of attorney and trusts (remember, your attorney and executor should also have copies of this)
• An inventory of your safety deposit box
• Life insurance policies
• House insurance policies

Paperwork that you can shred

• Bank statements – Many people suggest that you keep at least one year’s worth of bank statements (and some even recommend five), but in today’s day and age these are available on your online banking website and easy to access when you need them. In fact, many banks are going paperless and only offering online statements. If you are still receiving paper statements and you want to be extra cautious, you can always scan them and save them to the cloud, but otherwise – go ahead and shred.
• Credit card bills – The same goes for credit card bills – it is very rare that a bank will not have these stored online, ready to be accessed if you need to dispute a charge or balance your accounts. These can safely be shredded, but again – you might want to store a scanned copy to the cloud.
• Tax returns and all supporting documents older than 7 years – If you have been lugging around bulky cabinets of old tax return information for your small business, now is the time to assess and shred. If seven years have passed you can no longer be audited and so you no longer need these papers. If you want to keep them for your own use, scan them and store them online.
• Pay stubs and statements – Keep these for one year, and ensure that they match your end of year statement. Once a year has passed, you can happily shred these. You may want to keep a copy on the cloud for your own records.
• Investment monthly statements – Keep all confirmations and statements until you can see them detailed on your monthly report, and then feel confident in shredding them.
• Utility bills and phone bills: Don’t shred these space wasters until you’ve paid them, unless they contain any tax-deductible expenses. Look into whether you can have your bills switched from paper to electronic versions.

Paperwork to keep (only for long as you own the object):

• Appliance manuals and warranties – This information should be kept handy, just in case something happens to the item and you need to fix it, cash in the warranty or contact the company.
• Loan documents and vehicle titles – Keep these in a safe place that is also easily accessible, as having them on hand will save you a lot of time and effort should something go wrong.
• Your home and mortgage documents – This can include the deed to your home, any records of your purchase, all improvement and inspection record and all of your mortgage agreements.

What to store on the cloud

The options of what information you can store on the cloud are endless – any document, picture, file or music can be uploaded, making it accessible from anywhere on the planet, as long as you are connected to the internet. Cloud storage has many benefits as well, namely that it is cheap. Storing tons of digital data in a data storage system can be costly, while cloud storage provides an alternative at a fraction of the cost.

Of course, after many high profile security leaks, many people are rightfully concerned about the security of cloud storage. Is it really a secure method? The answer is yes – as long as you select a well reviewed cloud company that has a proven track record of excellence. Here are some tips on how to choose a good cloud storage provider.

Here are just a few things that you might want to store on the cloud:

• Manuals and protocols – If you own a small business, it can be costly and time consuming to print out employee manuals for new hires. Instead, direct them to a shared folder on DropBox or similar where they can find all of the information that they will need. This can save you reams of paper and a lot of clutter.
• Lists and old emails – If you are planning to save any online correspondence, lists or writing for sentimental values or business purposes, resist printing them out and instead store them to the cloud.
• Photos – The cloud is the perfect place to store photos, music and other files that take up room on your hard drive – and on your physical desk!
• Music – This one is more about keeping a clutter free computer (rather than your physical space), but storing your music online is the best way to save space on your hard drive.

As you can see, there are plenty of choices for how you can store your documents while keeping them safe, clutter free and well organised.

If you are in the process of recruiting new team members, you probably have a lot on your plate – determining exactly what you are looking for in an employee, crafting a great job posting, meeting with prospective new hires and most importantly – drafting an appropriate and thorough employee contract.

As an employer, it’s very important that you understand the minefield of legal requirements that come along with hiring staff. If you are a small to medium sized enterprise (SME), you’ll find that hiring at this stage is quite a bit different than asking a pal to come along and help you out for the day – things get a lot more complex when you are hiring staff on a legal basis. There are many legal requirements and protocols that you must follow in order to stay on the right side of the law.

Read ahead for a simple explanation of some of the legal requirements you must fulfill when hiring staff, followed by a few easy tips that will help you to write a winning employee contract, no matter what industry you are in. This information will help you navigate the hiring process and make finding your dream candidate a lot easier when the time comes.

Legal requirements when hiring employees

Here are some of the legal requirements that you must keep in mind when embarking on any hiring process for your first time – or your fiftieth time.

• You must be willing to pay at least minimum wage – The UK has an established National Minimum Wage, and no matter how small your enterprise, you must pay all employees this sum. Always ensure that the minimum wage requirements have been met; failure to do so can result in huge penalties for your business.
• You must find out whether you need to conduct DBS checks – DBS (disclosure barring security) checks are necessary if you work in any field involving vulnerable groups (such as children, mentally disabled people or incarcerated populations). Do not neglect this important step.
• Get insured: you need employer liability insurance – The minute that you begin to hire staff, you must ensure that you are fully covered by employer liability insurance. “EL insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you” – and you must be insured by an authorised provider for up to 5 million pounds.
• Alert HM Revenue and Customs (HMRC) that you are a new employer – You need to let HMRC know about your status as a new employer within four weeks of your intention to begin paying new staff members. Doing this within a timely fashion will ensure that everyone is paid on time and that you are correctly registered.
• Check that your staff is allowed to work in the UK – You must check to see that everyone you hire has the legal right to work in the UK; this usually requires that you view their legal documents before you allow them to begin working for you in any capacity.
• Job details must be submitted to the employee in writing – You must ensure that your employees receive details of the job (including all terms and conditions) in writing before they begin work if you plan to employ them for more than one month.
• Assess whether you need to enroll your staff in a pension scheme – Check this link to determine if you need to automatically enroll your staff members in a pension plan.

Tips for writing your employee contract

Now that you have navigated the above legal requirements when hiring new staff members, you are ready to get started writing your employee contract. Don’t let this task daunt you – follow this handy outline to make the process a lot simpler than you are expecting.

Things to include:

• Date – This may seem like a no brainer, but for your contract to be legal, it must include the date the offer is being made.
• Name of position – You need to ensure that the position you are hiring for has a name; even if you don’t really have one for the role, you need to come up with something simple and descriptive.
• Start date – Include the actual date that the employee will begin their role within your company.
• Compensation plan – This is key: you must include whether the new hire will be compensated with an annual salary, an hourly wage, a commission structure and/ or a bonus scheme.

• Base Salary – Once you have determined the employee compensation package that you are offering your new hire, you will need to include the actual monetary value of the base salary or hourly wage.
• Commission – If your employee will be paid on a commission structure, you will need to carefully elaborate how this will be calculated on your employee contract. Failure to do so can lead to misunderstanding and even legal troubles down the road.
• Benefits – Your employee contract must include details about benefits (such as pension and health care). Some of these details include: when the employee becomes eligible for company benefits, what benefits exist within your SME and directions to point them to any accompanying benefits package or literature.
• The dotted line – Another seemingly obvious component of an employee contract is the place for both the employer and the employee to sign! While you may think this is self- evident, you would be surprised how many people forget this vital component – a signature will make the document legally binding.

 

 

The above information about your legal requirements and tips for writing a successful employer contract should help you get started on this important task today. While these points may seem like things you can put on the back burner, you are strongly advised to deal with them before you even begin your search for your new employee(s). Good luck on your search!

On the 6^th April 2016, new guidance came into effect for companies and limited liability partnerships (LLPs) for registering people with what is termed ‘significant control’. The PSC register requires companies and LLPs to hold a register of those people who have a say over how they operate. This includes any individual that holds 25% or more of the shares in a company, 25% of the votes, or any other right to exert influence on the business. This effect can be either through direct or indirect means.

The change in law means that organisations have to register those with such interests and failure to do so could result in criminal convictions and possible fines. The legislation guidance issued outlines what individuals and legal entities need to do to comply with the legislation and what it means.

For instance, details of the PSCs will need to be registered with Companies House on the new Annual Confirmation Statement and the information can be accessed by the public free of charge. The company will also be required to allow those with a legitimate interest to inspect the PSC register at their office, for a small fee.

Why Has the PSC Register Been Introduced?

It’s hoped that the introduction of a PSC register in conjunction with the Small Business Enterprise and Employment Act 2015 will create greater transparency, helping to combat problem areas such as terrorism, money laundering and tax evasion by showing who actually owns or has control over a particular organisation. It follows on from an EU ruling in 2015 under the Fourth Money Laundering Directive that member states need to implement before 2017.

Who Needs to Register?

If you are an individual who meets any of the following requirements, then you will need to be entered on the PSC Register:

1. You have 25% of the shares of the company, held either directly or indirectly.
2. You have 25% of the voting rights of the company, either directly or indirectly.
3. You have the right to remove and appoint most of the directors in the company, either directly or indirectly.
4. You have the right to exercise influence or control over the company.
5. You have the right to exercise influence or control over the company via a trust or firm or other entity in a way which would satisfy the four terms above.

Not all companies will have individuals that meet the requirements for going on the PSC register, though you may wish to seek the appropriate clarification as to what your status is. One area where confusion might arise is that the PSC is perceived to be intended for individuals to register rather than legal entities such as a particular company or LLP. However, if a legal entity is itself required to maintain a PSC register then it must be entered into the PSC register of the company in which it exerts significant control.

Who Doesn’t It Apply To?

The PSC register doesn’t apply to those companies that are subject to DTR 5 requirements and those that have voting shares which are admitted to share trading on an EEA regulated market (other than the UK) or other specified markets. The reason for this is that these companies already have to make disclosures and the register would be seen as a duplication.

When Do You Need to Register By?

Companies are required to begin keeping a PSC register from April 2016 and that information needs to be filed with Companies House by the end of June 2016.

What Happens Next?

If you are an individual or legal entity that needs to go onto a PSC register, then you can contact the company directly and offer your details. If you have not done so, then the company will contact you to ask for the details. Failure to provide these without a valid reason could mean you are guilty of a criminal offence and lead to prosecution. If the company has failed to contact you and you know that you are a person with significant control you must supply your details to the company. Again, failure to do so can lead to a criminal conviction.

The company will need to register which of the five requirements a particular PSC meets. For instance, if they have more than 25% of the voting rights then the company will need to note the extent of the holding. Details that are recorded will depend on whether it is an individual or a registerable legal entity. The exact nature of what should be included and excluded in the register is routinely under review and may well include more in the future. Normal information that will be included are name and address, date of birth and nationality and whether there are any restrictions on disclosing your PSC information.

Timelines for Responding

A company must actively seek out PSCs and ask for their information. If someone has not volunteered their information, the company must send a notification within 1 month of finding out that they are a PSC. The person receiving the notification then has 1 month further in which to reply.

If you do not reply in a timely manner, then the company can issue a warning and put restrictions in place, including your ability to sell shares and stipulate that no rights in respect of your interest can be exercised.

Keeping Information Up-to-Date

The onus is on the PSC to inform the company that there has been a change in their status whether that is the possession of more shares or their no longer meeting the PSC requirements, necessitating removal from the register.

Where is the PSC Register Kept?

The company must keep its own register accessible and anyone with a proper purpose can access it for a small fee of £12.

The information must also be filed with Companies House and this will be available on the central public register. This will also be made available to law enforcement agencies. A private company can also choose to keep its own register at Companies House but must inform all PSCs that it is doing so.

Finding PSC Information

The Government has produced a good deal of guidance for companies to enable them to register PSCs and you can view this on their website. All companies with PSCs need to make sure that they have registered interests and logged their information with Companies House by 30^th June 2016.