Hereford - Thomas Carroll

ISSUE 1 June 2015
Workplace
Pensions and
Auto Enrolment
– Are You in?
A Recipe
for Safety
is Published
In This Issue
2
11
Welcome by Claire Humphries
- Branch Director
Landlords
- Know Your Risks
3
12
Workplace Pensions and
Auto Enrolment - Are You in?
Insure Against Business
Interruption
5
13
The Social Norm
Consider Your
Insurance Needs
6
65% of Homeowners are
Under-insured, are You?
7
A Recipe for Safety is Published
15
How to Profit from
Pension Flexibility
17
Meet the Team
9
A Third of Businesses
are not compliant with
Fire Safety - Is Yours?
1
18
Thomas Carroll
in the Community
Thomas Carroll
Welcome by
Claire Humphries,
Branch Director
I wish you a warm welcome to the first edition of
Thomas Carroll Hereford’s Business Insight advice
bulletin. In this issue we cover a variety of matters from
business insurance essentials, auto enrolment and fire
safety to home under-insurance and pension freedom.
2
For readers who are new to Thomas Carroll,
our offering is different to most brokers and
risk management companies. Our tried
and tested group approach encompasses
multiple services including Chartered and
independent insurance, wealth planning,
health and safety and employment law to
provide an integrated solution for you and
your business.
in the vicinity including Wye Valley and
Bartonsham Diaries as well as a number of
successful small businesses.
In recent years we have moved closer to
our clients. Our Hereford office, located on
Broad Street, is ideal for us to build on our
long standing client base in the surrounding
counties. Expanding into Worcester,
Cheltenham and Gloucester, our plans for
development in the region are exciting.
With a structured plan for recruitment, I am
constantly seeking professionals to come
and talk to me to join and benefit from our
award-winning career programme.
We look forward to working with the local
and wider community to provide you with
professional, independent, Chartered advice
and support.
Our growing client base includes sole
traders, growing businesses, personal clients
and a number of well-known businesses
Claire Humphries Dip CII
Branch Director
claire.humphries@thomas-carroll.co.uk
As proud supporters of St Michael’s Hospice,
the Thomas Carroll Hereford team are
looking forward to a number of upcoming
fundraising activities including afternoon
teas and dress down days.
In the meantime my colleagues and I would
welcome the opportunity to meet with you
in the near future. Feel free to pop in to our
Broad Street office for a coffee.
www.thomascarroll.co.uk
Workplace Pensions
and Auto Enrolment
- Are You in?
If you employ people in your business, having an auto
enrolment pension scheme is compulsory. Building
this into your business plan and financial budget
can be quite a daunting process. But we can help!
3
Workplace pensions
have been in place for
just over two years
More than 4 million
people have enrolled
By 2017 all
businesses will
be enrolled
It is important to act
quickly to understand
your obligations and
avoid unnecessary fines
Thomas Carroll
Workplace pensions have been in place for just
over two years and already, more that 4 million
people are saving for their retirement through
an auto enrolment scheme with their employer.
For businesses with less than 50
employees, automatic enrolment will
come into effect between now and 2017.
You may be one of these 1.3 million
employers who have not yet reached
their staging date. The good news is,
there is still time for you to prepare.
Free 2015 Auto enrolment
workshops in Hereford
You need to allow at least six months
planning prior to your staging date. It is
important to act quickly to understand your
obligations and avoid unnecessary fines.
•• Staging dates and your obligations
•• Analysing your workforce
•• Pension scheme governance
•• Pension provision and payroll arrangements
•• Member communications
Free workshops - we offer free auto
enrolment workshops in Hereford. Please
call us or visit www.thomascarroll.co.uk/autoenrolment-workshops to book your place.
Thomas Carroll can provide a solution to
meet your responsibilities as an employer,
even if your staging date has passed and
you need further help. We would welcome
the opportunity to meet you. Please feel
free to contact us at any time to discuss,
without obligation, the support you need.
Tony Smith
Employee Benefits Consultant
tony.smith@thomas-carroll.co.uk
Speak to an expert now to avoid a penalty
17th June
21st October
15th July
18th November
19th August
18th December
16th September
To book your place contact
jeanette.yeo@thomas-carroll.co.uk
Workshop dates are also available at our offices
in Swansea, Caerphilly and Haverfordwest.
4
www.thomascarroll.co.uk
The Social Norm
With the exploding popularity of social media, it is
increasingly risky for businesses to ignore this medium.
Social media is a powerful tool, whether you are promoting a new
service or gauging consumer reactions, and companies who are
not yet involved are dangerously close to being behind the times.
Why is social media so important?
3
Here are some of the general advantages
of social media for any business:
2
1
Exciting
possibilities for
spreading content
or ideas. Word
of mouth knows
no barriers with
social networks.
Social media
creates influence
on a scale that
traditional media
simply can’t match
- and for a fraction
of the cost.
People may already
be talking about
your brand or
company on social
media. If you
are not involved,
you are missing
an opportunity
to engage with
people and address
both positive and
negative feedback.
4
Your competitors
are probably on
social media. If
your company
is not, you are
missing a crucial
opportunity to
monitor the
competition.
Also, they may
be reaching an
audience you
are missing.
@thomascarrollgp
d sc al e in
an
ce
en
u
fl
in
s
te
ea
cr
ia
ed
m
“S oc ial
m p ly ca n n ot .”
a w ay tr ad it io n al m ed ia si
Strengthen and protect Your brand
Social media is a great way to draw attention to your competitive
advantages and encourage customers to talk about your brand.
People want to participate, have a voice and make their opinion heard.
Don’t miss the opportunity to connect with customers and prospects.
“A story
that may have
reached a dozen
people 20 years
ago now can reach
thousands, in
minutes.
Follow Thomas Carroll Group on Twitter @thomascarrollgp
5
Thomas Carroll
65% of Homeowners
are Under-insured,
are you?
Research suggests that one in five
households* could be under-insured because
owners do not know how much their home
is worth. Alarmingly, at least 65%** of
higher value homes are under-insured.
Your policy will provide a summary of what is
covered, and, more importantly, any significant or
unexpected exclusions or limitations to the cover. It
is the responsibility of the insured to make
sure that the ‘sum insured’ is adequate.
Home insurance is often divided into two
separate policies, one for buildings and
the other for contents. In addition to the
structure itself, the buildings policy includes
permanent fixtures such as bathroom suites
and fitted kitchens. Contents insurance covers
almost everything you would pack up and
take with you if you were to move house.
Calculating the cost of rebuilding a
standard three-bedroom home is somewhat
straightforward however, estimating the cost
of unique or unusual features in a higher
value home can be very challenging.
Top Tips:
1. Taking the time to read through your insurance
documents could prove to be an invaluable exercise
2. Consider a review of your contents sum
insured, they may be under or over-insured
3. If you buy anything valuable after taking out
your policy, contact your insurer to make
sure you new purchases are covered
4. Work out how much it would cost to rebuild your
house by visiting http://abi.bcis.co.uk/home.aspx
In Thomas Carroll’s experience, commonly underinsured possessions include; antiques, original works
of art, inherited items and electrical equipment.
Thomas Carroll provides a personal insurance
service which is expertly customised by our Chartered
insurance broking team. In addition, Club Signature,
our high value insurance service is a unique offering
for clients whose financial position and lifestyle
require high levels of individualised cover.
For more information or if you think you may be underinsured contact Thomas Carroll on 01432 359 500.
Alison Davies
Managing Director
alison.davies@thomas-carroll.co.uk
*Association of British Insurers (ABI)
**Chubb Insurance
5. Seek professional advice from a broker
www.thomascarroll.co.uk
A Recipe for Safety
is Published
The HSE has
recently updated
and republished its
health and safety guidance
for the food and drinks
industry, which includes
around 30 different
manufacturing
sectors.
7
Thomas Carroll
Aimed at everyone in the industry, including employees, supervisors, managers,
directors and health and safety representatives, A Recipe for Life covers the main health
and safety hazards, giving practical advice on how to manage the associated risks.
Key health and safety topics in the food and drinks sectors
According to the HSE, 96% of all injuries and occupational ill health in
food and drinks manufacturing are caused by the following:
•• machinery
•• workplace transport
•• work at height
•• entry into silos and
confined spaces
•• slips and trips
•• struck by objects
and knives
•• manual handling
•• upper limb disorders
•• occupational dermatitis
•• occupational asthma
•• noise-induced
hearing loss
•• work-related stress
Why positive action is needed
HSE research indicates that positive steps
by management could have prevented
injury in about 70% of incidents, while
action by employees could have prevented
injury in a further 10% of incidents.
Clearly, managing these issues will
significantly reduce injuries, ill health
and the associated costs. To download a
free copy of A Recipe for Life, please visit:
www.hse.gov.uk/pubns/priced/hsg252.pdf
8
For further information on matters
relating to health and safety please
do not hesitate to contact us.
Richard Pask
Director
richard.pask@thomas-carroll.co.uk
www.thomascarroll.co.uk
A Third of Businesses
are not compliant with
Fire Safety - Is Yours?
According to recent government
figures, more than a third of nonresidential premises audited last
year by fire and rescue authorities
were not fully compliant with the
requirements of the Regulatory
Reform (Fire Safety) Order.
9
Thomas Carroll
Action was taken against 12,932 premises as a result
of non-compliance. Licenced premises were the worst
performers with 48% being non-compliant, followed by
30% of offices and 29% of factories and warehouses.
What is even more worrying is that only 3% of premises
in England and Wales were actually audited, so the
standards reached in the other 97% are unknown. It
is quite possible that there are hundreds of thousands
of non-domestic premises that are breaking the law,
risking fines, potentially invalidating their insurance
and most worryingly of all, endangering the safety
of their employees and members of public.
Under the Regulatory Reform (Fire Safety) Order,
anyone who has control of premises or who has
a degree of control over certain areas must:
•• Carry out a fire-risk assessment identifying
any possible dangers and risks
•• Consider who may be especially at risk
•• Get rid of/reduce the risk from fire as far as is
reasonably possible and provide general fire
precautions to deal with any residual risk
•• Take other measures to make sure there
is protection if flammable or explosive
materials are used or stored
•• Create a plan to deal with any emergency and,
in most cases, keep a record of the findings
and review the findings when necessary
Free Interactive
Workshops in Hereford
The Health and Safety
Responsibilities of Directors
Successful health and safety management
starts with the directors. This highly
interactive breakfast workshop will cover:
•• Responsibilities of directors/
senior management
•• Common failures
•• Legal consequences
•• Corporate manslaughter
2015 dates in Hereford:
•• 19
•• 18
•• 11
th
June
th
September
th
December
To book your free place email:
victoria.vaughan@thomas-carroll.co.uk
Dates are also available at our offices in
Swansea, Caerphilly and Haverfordwest.
Richard Pask
Director
richard.pask@thomas-carroll.co.uk
10
www.thomascarroll.co.uk
Landlords
- Know Your Risks
Avoid fines, tenant disputes
or even prosecution
for a criminal offence
by being aware of your
responsibilities.
checks on electrical equipment and appliances,
landlords are still required under Common
Law and various acts and regulations
(such as The Landlord and Tenant Act
1985 and the Electrical Equipment (Safety)
Regulations 1994) to keep supplied electrical
equipment and systems safe for tenants.
As a residential landlord, you have a
variety of legal responsibilities for the
well-being of your tenants and the safety
of your property. Here are some key
requirements to consider as a landlord:
Fire safety regulations: Landlords must
also comply with all fire safety regulations,
including the Regulatory Reform (Fire Safety)
Order 2005 in England and Wales. If you
supply furniture to your tenants, you must
comply with the Furniture and Furnishings
(Fire) (Safety) Regulations 1988 (as amended).
Safe and free from hazards: Depending on
the terms of the lease or tenancy agreement,
most landlords in the UK are required to
keep the property safe and free from hazards.
This entails keeping the structure and
exterior safe and in good working condition,
including drains, gutters and external pipes.
Installations for the supply of water, gas,
electricity, heating and sanitation should also
be kept in good repair and working condition.
Gas requirements: Landlords are required
by the Gas Safety (Installation and Use)
Regulations 1998 to make sure that all
supplied gas appliances, fittings and flues are
maintained in a safe condition according to the
manufacturer’s instructions. Every 12 months,
a gas safety check must be conducted by a Gas
Safe registered engineer on each gas appliance,
fitting or flue to ensure they are safe to use.
Electrical equipment: While there is no
statutory requirement to conduct annual
11
Energy Performance Certificate: An Energy
Performance Certificate (EPC) is required
whenever a property is built, sold or rented.
Protecting deposits: Residential landlords
are required to protect their tenants’
deposits in a government-backed scheme
through independent third parties.
Unoccupied properties: Owning an unoccupied
building can pose serious liabilities, as
they are more susceptible to vandalism,
undetected repairs, fire and other losses.
If you own unoccupied property, it is
advisable to purchase unoccupied property
insurance, also known as unoccupied
building insurance, to protect against risks.
Annette Evans
Account Broker
annette.evans@thomas-carroll.co.uk
Thomas Carroll
Insure Against
Business Interruption
If a fire made your business premises temporarily unusable,
what would you do? How would your business pay utilities,
wages or other standing charges without any income?
It could take months before the
damaged property is rebuilt
and any stock, machinery
or equipment is repaired or
replaced. Ideally, you would
move to a temporary location
while your permanent place of
business is being repaired.
However, traditional property
insurance does not cover this
move or any loss of income when
a business has to temporarily
close. This setback can be
minimised by simply adding
business interruption cover to
your property insurance policy.
What can be included
in a business
interruption policy?
•• Compensation for lost
income if your business has
to vacate your premises as
a result of disaster-related
damage covered under a
property insurance policy.
•• Compensation for the gross
profits that would have
been earned, based on
previous financial records,
had the loss not occurred.
12
•• Operating expenses, such as
utilities, that must be paid
even when the business is
temporarily not trading.
•• The increased cost of working,
including the expenses
incurred from operating in
a temporary location while
repairs to the permanent
location are completed.
Considerations for
business interruption
insurance
•• Business interruption insurance
cannot be purchased on its
own: it must be added to an
existing insurance policy, such
as property or office insurance.
•• Purchasers must also
determine that the policy’s
maximum indemnity period is
sufficient to cover the amount
of time it will take for the
business to recover following
a major loss. This means
considering the worst damage
or disaster that the business
could incur, and then estimating
how long it will take to repair
or replace buildings, machinery
and stock, and how long it will
take to recover customers and
market share. Typical maximum
indemnity periods range from
12 months to 36 months,
in 6 month increments.
•• The cost of cover depends
on the type of risk associated
with the premises. This may
depend on the business
location, nature of the business
and how easily the business
could function at an alternate
location on a temporary basis.
Insurance experts estimate that
business interruption insurance
is one of the most valuable
covers available, yet it is often
overlooked by business owners.
Property insurance only covers the
cost of physical loss or damage
in the event of a disaster, but
business interruption cover can
keep your business going while
the property is being repaired.
Claire Humphies
Branch Director
claire.humphries@thomas-carroll.co.uk
www.thomascarroll.co.uk
Consider Your
Insurance Needs
Starting and growing a
business requires tireless effort
and a substantial financial
commitment. Besides dealing
with the essentials such as
raising the start-up costs,
establishing a customer
base and forecasting cash
flow, business owners are
besieged on all sides by risks.
•• Business interruption insurance recoups lost
The only thing you can count on when
growing your business is the protection
offered by commercial insurance.
profits if your business has to temporarily
close due to insurable property damage
Avoid losing everything to a disaster by obtaining
robust and comprehensive commercial
insurance to keep your business protected.
•• Public liability insurance covers your liability
Essential covers
•• Products liability insurance covers you
Businesses vary widely in insurance needs.
Factors such as the industry, business location
and size will determine the type of insurance
your business needs. However, any business can
benefit from the essential covers listed below.
•• Employers’ liability insurance is mandatory
for all UK employers. It covers employers’
liability for bodily injuries or diseases that
employees may suffer in the course of their job
for third-party injury and property damage
arising from your business operations
for damages and costs arising from
accidental injury or damage caused by
products supplied by your business
•• Cyber liability insurance provides protection
against a host of cyber threats, including
hacking, stolen data and system failure
Depending on the nature of your business,
you may need to consider additional cover
options to ensure you are fully protected.
•• Property insurance protects your commercial
property and contents from a broad range of risks
Carefully scrutinising the vulnerabilities of your business can help you to choose the covers you need
and devise a long-term plan to strengthen your business against foreseeable risks. Pinpoint the spots
where your business is the most vulnerable, and secure insurance that bolsters those vulnerabilities.
Additional covers to consider
•• Motor fleet
•• Legal expenses
•• Theft by employee
•• Equipment breakdown
We also offer many other types of
specialist business cover. Feel free
to contact us for more information.
14
•• Stock
•• Loss of money
•• Trade credit
•• Professional indemnity
•• Crime
•• Key person
Wendy Peplow
Business Executive
wendy.peplow@thomas-carroll.co.uk
www.thomascarroll.co.uk
How to Profit from
Pension Flexibility
Business owners who
want to extract surplus
profits from their business
will have welcomed the
new pension income
flexibility available
from April 2015.
Not only will pension funding remain the most
tax-efficient way to extract profits, but those funds
will become far more accessible than ever before.
Allowable pension contributions have the double
benefit of reducing the profits subject to corporation
tax, without incurring an employers’ National
Insurance liability. Extraction of profits as salary or
bonuses will also reduce profits before corporation
tax, but will not side step National Insurance.
Until now, the downside for business owners
has been that pension funds were not readily
accessible as cash. But all that is changing from
April 2015, if the business owner is aged over 55.
How much can be paid
into a pension fund?
Potentially, if someone has not paid anything
into their pension for some time, they can pay up
to £220,000 in the 2015/16 tax year, by carryingforward their contribution allowances from the
previous three tax years. The business would
have to demonstrate that the contributions were
‘wholly and exclusively for the purpose of trade’.
Hoarding cash – what are the risks?
Paying surplus profits to a pension instead of
capitalising it may also have a spin off benefit, by
allowing the business to avoid some tax pitfalls
that are associated with holding excess cash:
Authorised and regulated by the Financial Conduct Authority.
The Financial Conduct Authority does not regulate taxation and
trust advice, deposits or advice on debt or State benefits.
1. Inheritance Tax
Shares in unquoted trading companies normally
attract business property relief (BPR). But cash built
up in the company bank account or investments
held within the company could be regarded
as an ‘excepted asset’ and not qualify for BPR.
Companies should always obtain professional
advice to clarify their particular situation to avoid
unwittingly storing up an Inheritance Tax charge.
2. Capital Gains Tax
Holding excess cash in the business could cause
similar issues when shares in the company are sold.
Entrepreneurs’ relief can reduce the rate of Capital
Gains Tax payable on the disposal of qualifying
shareholdings to just 10%. To qualify, the shares
must be in a trading company and holding an excess
of cash or investments could trigger a loss of relief.
Time is money
Every year that pension contributions are
delayed, there is a reduction in the maximum
amount that can be paid by carrying forward
unused allowances from previous years. This
is because the annual contributions allowance
was cut from £50,000 to £40,000 in 2014/15.
All in all, there are many compelling reasons to use
pensions to extract profits which aren’t required for
future business use. And the longer you leave it, the
greater the danger of missing out on valuable reliefs.
Peter White
Senior Consultant
peter.white@thomas-carroll.co.uk
Tax and legislation are liable to change. This information is based on
our current understanding of UK law and HM Revenue & Customs
practice and legislation we believe may apply in the future.
No guarantees are given regarding the effectiveness of any
arrangements entered into on the basis of these comments.
www.thomascarroll.co.uk
Meet
the Team
Claire Humphries
Promoted to Branch
Director of Thomas
Carroll Hereford
Thomas Carroll Hereford has
announced two new appointments
in line with business growth.
Claire Humphries has been
promoted to the position of
Branch Director at the company’s
offices at Broadway House,
Broad Street, Hereford.
Thomas Carroll has
also appointed
Annette Evans as
Account Broker
at the company
which last year was
named UK Broker of the Decade
and IFA Firm of the Year.
With 20 years experience in
commercial and personal
insurance, Claire Humphries
17
is also a director of Thomas
Carroll Private Clients division,
and works with high net worth
clients throughout the region.
Annette Evans has fourteen years
experience in the insurance sector
and joins from A-Plan in Hereford.
Claire Humphries said: “I am
excited to be joining the team and
further building on our strong
client relationships in the area.
Our Hereford office is experiencing
continued business growth, and
we are looking to recruit further
based on our business philosophy
of employing local professionals
with established experience
of the regions we serve.”
This extended team also includes
Wendy Peplow, Business Executive,
Peter White offering advice around
pensions and investments,
Richard Pask, available to meet
and discuss any health & safety
/ employment law concerns,
Kevin Phillips, Claims Negotiator,
and Barrie McCarthy to manage
personal insurance enquiries.
Thomas Carroll’s Group services
encompass personal and
commercial insurance broking,
Independent Financial Advice,
health & safety consultancy
and employee benefits.
Thomas Carroll
Thomas Carroll
in the Community
We are proud supporters of St Michael’s
Hospice, read more about the hospice
here: www.st-michaels-hospice.org.uk
Last year our fundraising activities
raised £879 for St Michael’s Hopice
Thomas Carroll Hereford
Tel:
01432 359 500
Email:
info@thomas-carroll.co.uk
Visit:
www.thomascarroll.co.uk
Broadway House, 32 – 35 Broad
Street, Hereford HR4 9AR
Google Maps
Thomas, Carroll Group plc
Thomas, Carroll Management Services Limited
Thomas, Carroll (Brokers) Limited
Thomas, Carroll Private Clients Limited
Thomas, Carroll Independent Financial Advisers Limited
Bing
Commercial and
Personal Insurance
Health and Safety
Financial Planning
Employment Law
Legal Indemnities
Proudly awarded
UK Insurance
Broker of the
Decade*
Thomas Carroll takes care of it all for you,
from insurance to health & safety and
financial advice.
Mike Powell
Group Development Executive
Visit
www.thomascarroll.co.uk
Telephone
01432 359 500
Broadway House, 32 – 35 Broad Street,
Hereford HR4 9AR
LOCAL | CHARTERED | INDEPENDENT
*Awarded to Thomas Carroll (Brokers) Limited
at the British Insurance Awards 2014