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May 2

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INSIDE THIS ISSUE

WEATHERING THE

COVID-19 STORM:

WHICH SECTORS

ARE THRIVING?

Weathering The Storm 2-3

Podcast Launch 4

Beyond Covid-19 5-6

Digital Links Deadline 7-8

Conspiracy Theories 9

Monthly Newsletter

UPCOMING EVENTS

All upcoming events for 2020 have been

postponed inline with government

advice. Once the situation becomes a

little clearer, we will be looking at setting

new dates later in the year!

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First we had the panic-induced run on hand gel,

pasta and loo roll, followed swiftly by the

scramble to secure a regular supermarket delivery

slot. As the new normal set in, we’ve been

tackling the books and DIY jobs we’ve been

putting off, while bicycle sales are apparently

soaring.

It goes to show how in the space of a few weeks,

our habits, priorities, preferences and

expectations have been transformed. At the

same time, certain trends that were there already

have been accelerated. So which sectors are

especially well placed to respond to this

changing landscape? Here’s a closer look…

Beauty retail and “little luxuries”

Logic might suggest that in times of uncertainty,

the market for luxuries takes a massive hit. And

certainly, for lots of reasons, not many of us are

likely to be booking around-the-world cruises

anytime soon. But where does this leave life’s little

luxuries?

Research pre-dating Covid-19 suggests that the

so-called ‘lipstick effect’ is a real thing. This is the

phenomenon whereby in times of uncertainty,

small-ticket luxury items see a sales upsurge as

people look for ways to improve wellbeing and

boost their mood.

L’Oreal announced that its first quarter sales in

China had increased 6.4% year-on-year, despite

the country being on lockdown for most of that

period. In the UK, the evidence points to

consumers turning to online retailers for self-care

and home-based treatments, with online stores

seeing a 111% boost to the number of

transactions since the start of the crisis. Even with

WEATHERING THE COVID-19 STORM: WHICH SECTORS ARE THRIVING?

ECONOMY

so many of us confined to our homes, this suggests that

the lipstick effect is coming into play.

Home fitness

While traditional gyms and fitness clubs have been left

reeling by the Covid restrictions, home exercise is

booming. Shares in the leading digital fitness brand,

Peloton have increased by more than a third since the

start of the outbreak. People are not just buying the kit,

but are also signing up to virtual fitness sessions in ever

greater numbers.

Linked to this, one of the many upsides of fewer cars on

the road is that cycling is much more appealing. The

UK’s bike shops have been allowed to stay open during

the lockdown, and many have been seeing a level of

sales “only usually seen around Christmas”.

The desire to avoid the Tube or bus is probably also at

play here. Across Europe, new cycle lanes are a key

part of the strategy to get people back to work, while

helping reduce public transport overcrowding.

Commuter bike specialist, Brompton has reported

particularly strong demand, suggesting that cycling’s

boost in popularity is much more than just a fitness fad.

Media consumption and education

Unsurprisingly, we are all consuming more media since

the lockdown. The biggest changes in behaviour

include news coverage consumption (up 36% world-

wide), along with time spent on social media (up 21%).

Streaming service providers have been among the big-

gest winners in all of this. For instance, Netflix says it add-

ed 16 million new accounts in the first quarter, and its

share price has climbed by more than 30% this year.

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Although it was planned way in advance of the

outbreak, the timing of the launch of Disney’s new

streaming service was perfect: right when the

world was in need of lots more family-friendly

content.

With more than a billion children affected by

school closures, the streaming of educational

content has also seen a big increase. Figures from

The World Economic Forum show that this sector

was on a sharp upward slope even before the

outbreak. The value of the education technology

(edtech) sector was expected to increase from

around US$19 billion to $350 bn between 2019

and 2025.

Covid-19 has triggered an unexpected surge in

edtech adoption. Even when schools and

colleges get back to normal, it is likely that many

institutions will retain at least some newly-adopted

elements of online learning as part of their model.

Collaboration

For many businesses, adapting to new ways of

working has been a process of trial and error.

WEATHERING THE COVID-19 STORM: WHICH SECTORS ARE THRIVING?

Continued...

It has also meant having to update their IT toolkit,

especially when it comes to collaboration.

Between 11 March and 18 March, the number of daily

users of Microsoft Teams increased from 32 million to 44

million. Slack and Zoom have also seen big jumps in

both usage rates and sign-ups.

For teams that found themselves working from home for

the first time, it has been a case offinding their way

around various collaboration suites, often by taking

advantage of free trial packages.

This is fine if all you need is a quick video call between

team members at the start of the day. But as working

from home continues, businesses are almost certainly

going to need more from their software, such as

uncapped video calltime, scope for larger numbers of

call participants and stronger integration with other

business systems. When these needs arise, organisations

are much more likely to opt for premium packages:

good news for the software providers.

Do you need help in updating your tech stack to reflect

new ways of working? Are you looking for technical

support in repositioning your business to meet changing

customer demands? Speak to Millennium Consulting

today.

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Last month we launched the ‘insight’ series of podcasts from Millennium Consulting!

With Covid-19 dramatically changing the way organisations operate and communicate with customers,

employees and partners, Millennium Consulting is producing a series of podcasts containing interesting

technology themed content for our finance and technology audience. In this podcast series we invite finance

and technology leaders to discuss their careers, the challenges they have faced, provide advice for those starting

out and to share their views about the future world of work.

In the first episode we interview Jeremy Wood, serial entrepreneur, CEO and Founder of Legerity.

Interviewer: Sam Guilding, Marketing Manager, Millennium Consulting

Interviewee: Jeremy Wood, CEO & Founder, Legerity Limited

Date: Tuesday 7th April 2020

You have enjoyed a highly successful career within the software industry and launched several companies. What

made you decide to pursue your career in this sector?

‘I started my career in technology and IT back in 1985, believe it or not, so well into my fourth decade in the

industry.

When I started out it was it was very much the early stages of business computing, and many firms at that stage

were still largely based on manual and paper-based processes and in my particular area, which was

computer-based accounting systems (so very much in their infancy) many of the systems that we provided in

those days were for first-time users - so their first sort of use of IT from a business perspective.

That was really sort of interesting for me; when I looked at the sector, I saw it is a massive opportunity.

It's a very early-stage industry and it was a massive opportunity to change the way that businesses work and it was

very exciting and of course over that time I've seen many changes in the industries but five start-ups later I'm still

pretty motivated to make a difference pretty much like when I first started!’

Visit our YouTube channel to listen and watch the full podcast.

LAUNCHING THE MILLENNIUM CONSULTING PODCAST

RECRUITMENT

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With the continued uncertainty - and of course, the unremitting joys of homeschooling, it’s fair to say that any

novelty value of the lockdown is now long gone.

Even when restrictions do start to lift, we won’t be experiencing business as usual anytime soon. But is this an

entirely bad thing? In terms of priorities, attitudes and new ways of living, here are some of the positives we may

be able to carry with us into the future.

The green benefits of fewer commuters

When billions of workers across the globe were told to stay at home, the impact on the environment was both

significant and immediate. Cities are currently a lot cleaner than they were - and there are plenty of obvious

positives from this. As an illustration, Stanford University researchers estimate that improvements in air quality in

China may have saved the lives of over 70,000 people.

London’s mayor, Sadiq Khan points to the fact that anti-pollution measures introduced since 2017 had already led

to a 35% drop in harmful nitrogen dioxide emissions across the capital. City-wide, the lockdown has caused those

levels to fall by a further 27%. At some pollution hotspots, it is down by almost 50%.

So is this breath of fresh air just a temporary phenomenon? A lot will depend on our attitude to working from home

(WFH) - and whether the lockdown has done anything to fundamentally change it.

If, on the whole, employers regard WFH as nothing more than a temporary workaround, then clogged-up

transport routes and dirty cities will eventually become the norm once again. But of course, that doesn’t have to

be the case. Many organisations find that WFH suits the business just fine, while staff appreciate it, too. If a lot more

of us decide to retain at least some elements of WFH in the long-term, we might all notice the benefit.

New heroes emerge (and a handful of villains are uncovered)

99-year-old Captain Tom Moore, the NHS, carers, key workers: these are just some of the heroes that have

emerged from the crisis.

Many businesses have also stepped up. We’ve seen brewers switch from beer to bottles of disinfectant and hand

sanitiser, while clothing manufacturers have turned their production focus to protective gowns. Other examples

include the hotels that have made their newly-vacant rooms available to homeless charities and key workers,

along with the cafes that have shifted their focus to preparing food boxes for the elderly and vulnerable.

But of course, not every business will come out of the Covid-19 crisis with their reputation untarnished.

Certain companies were seen as being a little too eager to lay off staff, just as the government was

putting in place a furlough scheme designed to protect jobs. Other businesses have been accused...

BEYOND COVID-19: HAS ANYTHING CHANGED FOR THE BETTER?

CORONAVIRUS OUTBREAK

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… of taking a cavalier

attitude to staff health and

safety, especially when it

comes to social distancing

measures and sick pay

provision.

C o r p o r a t e s o c i a l

responsibility (CSR) has

become a hot topic over

recent years. Simply put,

it’s a way of assessing the

impact of bus iness

activities on individuals,

communities and the

environment.

It’s actually very easy for

organisations to make

bold CSR claims. But when

things get tough, it can

really put those claims to

the test. Has this company

treated its staff and

suppliers fairly? Is it

responding to the changing needs of customers and the wider community - or is it merely trying to exploit an

opportunity?

This is perhaps one of the positives of Covid-19: it reveals the true colours of organisations. More than ever,

customers expect companies to do the right thing. Behave responsibly, and it could go a long way in earning their

trust.

New technologies come of age

At a very early stage of the outbreak, it was clear that the world was facing a critical shortage of ventilators, PPE

and other key pieces of equipment. Part of the solution involved getting manufacturers with no previous history of

clinical kit production to help in making up the shortfall.

Ventilator components, respirator masks, visors and other clinical-grade items have to meet pretty tough

standards before they can be put to work. A decade or so ago, it would have taken many months for

non-medical manufacturers to get up to scratch with these standards. But thanks to 3D printing technology, any

producer with digital manufacturing capabilities can get to work within hours of being provided with the product

design. From major motor industry players through to small-scale workshops, a vast range of manufacturers have

been able to join the production effort.

Gaining a new perspective

The last few months has been a time for testing assumptions and re-examining priorities - and that’s no bad thing.

For instance, up until recently, rigid hours, close supervision and a tight chain of command were still hardwired into

the corporate culture of a surprisingly large proportion of businesses. Covid-19 may have forced a rethink. Many

businesses may have come to realise that giving employees much greater flexibility on how, when and where

tasks are carried out doesn’t negatively impact performance. In fact, it often results in a productivity boost.

Meanwhile, book and bicycle sales have spiked, while many of us have taken the opportunity to tackle those jobs

we’ve long been putting off. Organisations might want to take a similar approach, by taking a good

look at their existing tools, processes and assumptions. Does anything need fixing? This could be the

ideal time to get it done.

BEYOND COVID-19: HAS ANYTHING CHANGED FOR THE BETTER? Continued...

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VAT NEWS: ‘DIGITAL LINKS’ DEADLINE EXTENDED TO 1 APRIL 2021 MAKING TAX DIGITAL

Does your business still need to get its VAT accounts 100% digitally linked? If so, HMRC has announced some

welcome breathing space.

The ‘soft landing period’ for Making Tax Digital (MTD) for VAT was due to come to an end on 31 March 2020, but

has now been extended by a year. It means that all businesses have until their first VAT return period starting on or

after 1 April 2021 to put full digital links in place.

Here’s a closer look at the scope of this extension, the broader requirements of MTD - and at how to make sure

you stay on the right side of the rules.

Making Tax Digital: A Quick Overview

First announced in the 2015 Spring Budget, MTD is the government’s initiative for modernising the UK’s business tax

framework. It’s aim is to make tax admin more effective, efficient, and fairer.

The plan, ultimately, is to bring all business taxes under the MTD umbrella. It’s an ambitious project, involving a

fundamental shift from paper to digital record keeping, and from annual to quarterly reporting. To ensure

compliance, it requires businesses to reassess both their reporting procedures and the accounting tools they

currently have in place.

VAT has been the first area of focus in the plan. As from April 2019, the vast majority of VAT-registered businesses

with a taxable turnover above the VAT threshold (£85,000) are now covered by the MTD framework.

Software requirements for MTD

Businesses caught by MTD are required to shift their VAT accounting to “functional compatible software”. In short,

the software must be capable of storing and maintaining the organisation’s VAT records. It must enable the

preparation of VAT returns using the information maintained in those records. It must also be capable of linking up

with HMRC digitally through HMRC’s own API platform.

But what happens if your accounting processes involve more than one software application?

Or what if you use spreadsheets for your accounting?

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Where data is scattered across more than one location or systems, you can still be MTD-compliant, so long as you

have a digital link in place for transferral of the data.

What is a digital link?

HMRC rules specify that in order to be compliant with MTD rules, a digital link must have two characteristics:

• Data must be transferred electronically between programs, products or applications.

• The transfer must be automated. In other words, the process of transferring the data must not involve any

manual intervention, such as copying and pasting it from a spreadsheet to another location.

What is the ‘soft landing’?

It is essentially a ‘grace period’, providing businesses with time to get their technology in order. So during the soft

landing period only, if a company has not been able to set up complete and effective digital links between its

various software programs, spreadsheets and locations, HMRC will accept the use of ‘cut and paste’ or ‘copy

and paste’ as a digital link.

Businesses should still note, however, that even during this soft landing period, you still need to use MTD-compliant

software for actually submitting your VAT return to HMRC.

How to become fully MTD compliant

Full automation of your VAT processes isn’t just essential for compliance purposes, it also makes perfect sense for

your business. Not least, it helps reduce the time and resources you need to commit to VAT reporting, freeing up

your finance team to focus on driving your business forward.

With our partners, Avalara, we offer a one-stop solution to automate all forms of VAT compliance in the UK,

Europe and over 50 countries around the world. To join up your multiple systems, to stay compliant and to free up

your resources, speak to Millennium Consulting today.

VAT NEWS: ‘DIGITAL LINKS’ DEADLINE EXTENDED TO 1 APRIL 2021

Continued...

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We’ve all seen how a virus can take hold in a population if the

conditions are right. Running alongside this, the Covid-19 outbreak

has also demonstrated just how easily misinformation can spread in a

virus-like way. Start with a major event, add a huge helping of

government Intervention, some fear and confusion, along with

perhaps a little too much spare time, and there you have it: the ideal

environment for conspiracy theories to spread.

But just how many of us take these stories seriously? Possibly a lot

more than you might think. According to The Independent, almost

half the British population think coronavirus is “man-made”, while 8%

believe in the 5G conspiracy theory.

Here’s a roundup of some of the theories currently doing the rounds…

5G

This suggests that there isn’t a virus at all. Rather, the symptoms of Covid-19 are actually caused by

electromagnetic radiation. Those who support the theory try to argue that the emergence of the illness has come

at the same time as the arrival of new 5G antennas. The story goes that there’s something seriously dangerous

about these new, powerful 5G radio emissions, and this is what is causing us to become ill.

In common with most conspiracy theories, belief in the 5G story demands a quite a big logical leap. First off, you

have to accept that all the biological and epidemiological data surrounding the virus is either wrong, or that it’s

all part of one huge international conspiracy. Having overcome this, you also have to explain the presence of the

illness in countries where 5G doesn’t exist.

Despite all this, belief in the 5G theory has been remarkably slow to disappear. Over the Easter weekend alone,

there were 20 arson attacks on phone masts. Openreach have said their engineers are being abused when trying

to carry out maintenance work, while Twitter has had to step in to curb messages inciting people to attack phone

towers.

Bill Gates

The 5G stories linger on, but evidence suggests that they are no longer the most popular subject of coronavirus

misinformation. A lot of attention has shifted to Bill Gates. According to The Verge, conspiracy theories linking

Gates with the virus were mentioned 1.2 million times across TV and social media between February and

April. Theorists were quick to focus on a 2015 Ted talk given by Gates, in which he discussed the Ebola outbreak

and talked about the possibility of a new pandemic. Hard-core anti-vaxxers and other pundits have

retrospectively seized on this to suggest he had prior knowledge of the Covid outbreak.

The Bill Gates conspiracy theories come in various flavours. Some people say it’s all part of Gates’ plan to widen

his vaccination empire. Others go further, suggesting that the vaccination program itself is a clever ruse to implant

digital microchips in vaccine recipients, from which it will be possible to administer a global surveillance system

and control the populace.

A man-made virus

It’s probably fairer to label this as more of a fringe theory than a full-blown conspiracy theory. It suggests that the

virus was created in a lab, from which it was either accidentally leaked, or else deliberately released. The

plausibility factor is increased by the fact that the outbreak’s ‘ground zero’ is very close to the Wuhan Institute of

Virology, a level-4 biosafety facility, with authority to handle the world’s deadliest viruses.

So could it have been man-made? Anthony Fauci, The US government’s highly respected infectious disease tsar,

apparently thinks not. In an interview with National Geographic, he pointed to scientific evidence which suggests

“very, very strongly” that this virus could not have been artificially created or else deliberately manipulated”. But

even if it wasn’t artificially created, could it have nevertheless been present at the Wuhan lab, from which it was

later able to escape? So far at least, this seems unlikely. According to the most recent comments from the Five

Eyes Network, an alliance between the intelligence agencies of US, UK, Australia, New Zealand and Canada,

there is no evidence of a lab leak.

That said, according to The Guardian, the Five Eyes agencies point to the fact that China has not

necessarily been open about the spread of the virus in its early stages. This highlights an important

thing to remember about conspiracy theories and misinformation: the less transparency there is from

official sources, the greater the scope for people making up their own stories.

CORONAVIRUS CONSPIRACY THEORIES: WHAT’S THE STORY?