Further cuts to end NI contributions? How to respond to a ransomware demand, support measures for farming and a new approach to recycling collections
Today we discuss the government’s intentions to finally scrap National Insurance contributions, what to do if you receive a ransomware threat, the government’s plans to support farmers and a simpler approach to more effective recycling waste collections.
Government promise to cut National Insurance confirmed
While commenting on the GDP growth and what it indicates about the economy, the Prime Minister again drew attention to National Insurance.
The article released by the Prime Minister’s Office noted that the progress in the economy has allowed them to bring down taxes, particularly the recent cuts in National Insurance.
The article went on to say: “We think it’s unfair that workers pay two taxes on their income – income tax and National Insurance – when those who earn their income from other sources only pay income tax. That’s why we want to keep cutting National Insurance until it’s gone.”
Likely part of an election strategy, but this again confirms that we can expect further cuts to National Insurance.
The lack of National Insurance to pay on dividend payments is a key reason why many company shareholders choose a blended salary/dividend approach to extract money from their company. However, cuts to National Insurance will lessen the tax advantages that dividends bring.
The cuts that have already been made mean that taxpayers in certain situations will want to review their profit extraction strategy. Future cuts will likely mean more need to do this.
If you are unsure about your profit extraction strategy please feel free to get in touch with us and we will be happy to carry out a personalised review for you.
See: https://www.gov.uk/government/news/what-does-gdp-growth-mean-for-me
Ransom payments: New guidance on ransomware demands
The National Cyber Security Centre has joined forces with three major UK insurance associations to release new guidance designed to help reduce ransom payments made by victims of cyber crime.
The guidance sets out best practice and gives recommendations that can help businesses and other organisations make informed decisions when they are faced with ransomware. Following this guidance should help to minimise disruption and the cost of an incident.
Ransomware is popular with cyber criminals and the number of attacks on UK businesses continues to increase, making ransomware the key cyber threat facing UK businesses and organisations.
Ransomware involves a criminal or criminal group accessing a computer network and using malware to encrypt files and prevent access to data and devices. The criminals then demand a ransom for a decryption key that will decrypt the files and restore the system.
NCSC and law enforcement partners discourage paying ransoms since they don’t guarantee the end of an incident. Even years later, the attacker may come back with a threat to publish or sell stolen data. Paying ransoms also gives an incentive for criminals to continue and even expand ransomware attacks.
The guidance highlights the following things to consider in the event of an attack.
- Don’t panic – slowing down to review the options can improve decision making and improve the outcome.
- Review the alternatives, including not paying – backups or other ways to recover systems and data may be available. Law enforcement also make decryption keys freely available.
- Record your decision-making.
- Where possible, consult experts – insurers, the NCSC, police and cyber incident response companies can help you make good decisions.
- Involve the right people across the organisation in decisions, including technical staff – make sure the options haven’t been prematurely presented; look at all the possible evidence.
- Assess the impact – there’s no guarantee that paying a ransom will secure data, so consider what you need to do about stolen data, including reporting it to the Information Commissioner’s Office (ICO).
- Investigate the root cause of the incident to avoid a repeat attack.
- Be aware that payment does not guarantee access to your devices or data.
- Consider the correct legal and regulatory practice around payment – ransom payments may not be lawful.
- Know that paying a ransom does not fulfil your regulatory obligations – the ICO would not reduce the amount of any penalty if a business had paid a ransom but not fulfilled any reporting obligations.
- Report the incident to UK authorities.
To read the guidance in full, see: https://www.ncsc.gov.uk/guidance/organisations-considering-payment-in-ransomware-incidents
Farming and food sector receives new support measures
Measures to support farmers and help the UK’s farming and food sector grow were announced last week by the government.
The support package is designed to support domestic food production and boost innovation so that the sector can reach its full potential.
A new blueprint
A blueprint to grow the UK fruit and vegetable sector is included as part of the measures. This is a plan to increase the amount of fruit and vegetables produced in the UK.
The blueprint includes plans for ensuring access to affordable and sustainable energy and water, cutting red tape so that glasshouses can be built more quickly and easily, and new investment aimed at boosting innovation.
To look at the blueprint in full, see: https://www.gov.uk/government/publications/a-blueprint-to-grow-the-uk-fruit-and-vegetable-sector
Food Security Index
A new annual Food Security Index has also been published. This index is UK-wide and gives an assessment of the state of UK food security in 2023 to 2024.
Rather than being a single figure, the index looks at 9 indicators across a range of areas. This allows for a more qualitative, well-rounded assessment to be made.
The new index shows an overall assessment of UK food security as being broadly stable. It does mention though that there are longer term risks from climate change, and an exceptionally wet winter and spring in 2024 pose significant challenges to some domestic production.
To read about the Food Security Index and its 9 indicators in full, see: https://www.gov.uk/government/publications/uk-food-security-index-2024/uk-food-security-index-2024
Recycling collections being revamped to make them simpler
Recycling can be confusing, leaving people and businesses wondering what items can be recycled on bin day. So, a new common-sense approach has been announced to make bin day easier and more standard across the country.
Councils will now be allowed to collect plastic, metal, glass, paper, and card in one bin in all circumstances. Food and garden waste can also be collected at the same time.
This approach will keep things simpler for councils and other waste collectors.
The government is also pushing for more frequent and comprehensive bin collections. Outside England, there is a trend towards three-weekly or four-weekly bin collections. At a minimum, councils will be expected to collect black bin waste at least every 2 weeks, and to collect food waste each week. However, councils are being encouraged to consider making more frequent collections to avoid smelly waste building up.
The measures cover homes and businesses in England. Places of worship, penal institutes, charity shops, hostels and public meeting places have also now come under the scope of the Simpler Recycling regulations.
See: https://www.gov.uk/government/news/simpler-bin-collections-for-england-to-boost-recycling