ISSUE 1 June 2015
Workplace Pensions and Auto Enrolment - Are You in?
What’s different about Holiday Home Insurance?
In This Issue 2
11
Welcome/Croeso Simon Lawrence Branch Director
Landlords - Know Your Risks
3 Workplace Pensions and Auto Enrolment - Are You in?
5
Druidstone Haven by Alex Mills / alxmls.co.uk
Insure Against Business Interruption
13
The Social Norm
Consider your Insurance Needs
7
15
A Recipe for Safety is Published
How to Profit from Pension Flexibility
8
1
12
17
What’s different about Holiday Home Insurance?
Meet the Team
9
18
A Third of Businesses are not compliant with
Thomas Carroll in the Community
Fire Safety - Is Yours?
Thomas Carroll
Welcome / Croeso by Simon Lawrence, Branch Director I wish you a warm welcome to the first edition of Thomas Carroll Pembrokeshire’s Business Insight advice bulletin. I hope you find it interesting and informative. In this issue we cover a variety of issues that may affect you and your business, such as auto enrolment, social media, health and safety regulations, insurance essentials, residential property and holiday homes. 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’ to multiple services gives you the peace of mind of an integrated solution to risk management. Our growing client base includes all kinds of businesses, from sole traders and dynamic small businesses to well-known companies such as Princes Gate, Milford Haven Port Authority and Folly Farm. From our splendid offices in Victoria Place, we are working to develop business relationships across the region, as far as Carmarthen in the east and north to Cardigan and beyond. I am constantly seeking experienced commercial Account Executives to come and talk to me. Later this year, I will be creating a graduate position for a business student in Pembrokeshire
2
to benefit from our award-winning two year programme. As members and advocates of Business in the Community (BITC) and Pembrokeshire Tourism, we actively support a variety of local community initiatives. These include our continued support of the Paul Sartori Foundation, as well as sports sponsorship at all levels, from grass roots clubs to regional rugby clubs such as the Scarlets. We are proud category sponsors of the Pembrokeshire Radio awards in June and we would urge you to enter your business. Following last year’s success, we will also be exhibiting at the Pembrokeshire County Show in August. Please come and visit our stand for tea and a welsh cake. In the meantime, my colleagues and I would welcome the opportunity to meet you in the near future. Feel free to pop in to Victoria Place for a coffee. Simon Lawrence Branch Director simon.lawrence@thomas-carroll.co.uk
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 Haverfordwest
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 Haverfordwest. 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.
Stephen Francis Senior Consultant stephen.francis@thomas-carroll.co.uk
Speak to an expert now to avoid a penalty
17 th June
21st October
15th July
18th November
19 th August
18th December
16 th September
To book your place contact jeanette.yeo@thomas-carroll.co.uk Workshop dates are also available at our offices in Swansea, Caerphilly and Hereford.
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? 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.
4 3 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.
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
en ce an d sc al e in u fl in s te ea cr ia ed m l ia oc “S p ly ca n n ot .� m si ia ed m al n io it ad tr ay aw 5
Thomas Carroll
Social Profile: Folly Farm
“A story that may have reached a dozen people 20 years ago now can reach thousands, in minutes.
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.
Why Folly Farm is one to follow Chris Ebsworth, Managing Director of Folly Farm, told Business Insight why social media is so important to this, one of Wales’ leading visitor attractions.
6
“Social media has become an increasingly valuable tool for our business over the last few years, not just in terms of its marketing reach - we are reaching a Facebook audience of 300,000 people a week in peak season - but in terms of engaging with our customers. The feedback we receive on social media regarding our products and services informs management decisions on areas for improvement and new developments. Social media is a great measure of how our brand is perceived amongst our visitors and wider communities.” Twitter - @FollyFarmWales Facebook - www.facebook.com/FollyFarm
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. 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
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.
7
•• occupational dermatitis •• occupational asthma •• noise-induced hearing loss •• work-related stress
To download a free copy of A Recipe for Life, please visit: www.hse.gov.uk/pubns/priced/hsg252.pdf For further information on matters relating to health and safety please do not hesitate to contact us. Kevin Price Managing Director kevin.price@thomas-carroll.co.uk
Thomas Carroll
What’s different about Holiday Home Insurance? Your situation will have an impact on the cover you need. When you rent out your holiday home commercially, you need to make sure that you have the correct liability insurance in place to deal with today’s growing claims culture.
It is important to understand that holiday home insurance differs from that of your main residence. Insurers often include clauses within a policy that need to be understood and complied with. Whether your second home is in the UK or overseas, we can help you to choose the policy that is right for you.
Top tips for protecting your holiday home: 1. Seek advice from an expert – Your holiday home is likely to be one of your most valuable assets. Our top tip is to take insurance advice from an expert 2. Understand the legislation – You may not think of your holiday home as a business, but it becomes one if you allow paying guests to stay in your property 3. Communicate with your insurance broker – Be open and honest with your insurance broker. It is your responsibility to provide complete and accurate information when you take out the policy
6. Loss of rental income – You can obtain cover for loss of rental income if your holiday home is destroyed or damaged by an insured event which interrupts letting 7. Legal expenses – If included in your holiday home insurance policy, legal expenses will often be arranged in conjunction with a specialist legal expenses insurance company
Barrie McCarthy Director barrie.mccarthy@thomas-carroll.co.uk
4. Read your policy conditions carefully – A specialist broker can help with this: they will make you aware of the benefits and point out clearly any policy conditions or warranties that may apply 5. Protect your building and the contents – As well as cover for standard risks such as fire, flood and theft, you may want to consider cover for accidental damage. It is important that you insure for the full replacement costs. You should also consider employers’ liability insurance and public & products liability insurance
8
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 Haverfordwest 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 Haverfordwest:
•• 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 Hereford.
Kevin Price Managing Director kevin.price@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. Alison Rees SME Executive alison.rees@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.
•• 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.
12
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. Brian Hawkins Account Executive brian.hawkins@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
Alison Rees SME Executive alison.rees@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 changed 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:
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. 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. Stephen Francis Senior Consultant stephen.francis@thomas-carroll.co.uk
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. 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
How we have Grown Meet the Thomas Carroll Pembrokeshire team based at Victoria Place, Haverfordwest.
is now our Business Development Executive and operates throughout West Wales.
The office was established in May 2013 to service our existing local clients and to provide all our group services, including insurance broking, financial services, employee benefits, health & safety and employment law consultancy.
Locally-based insurance broking specialists with over 26 years’ experience, Simon Lawrence and Martin Colley moved to us from Antur Insurance. Martin is an Account Broker and Simon has recently been appointed as Branch Director.
Since then we have seen significant business growth, as a result of which we have expanded the office with new appointments, doubling the size of the executive team.
Brian Hawkins joins the office as Account Executive, while Alison Rees joins us as SME Executive and Claire Sutton as Account Broker. Alison and Claire, with 20 years and 12 years insurance broking experience respectively, have moved to Thomas Carroll from Antur Insurance in Haverfordwest. Brian Hawkins has nearly 30 years in the insurance sector. He joins us from Nicholas Insurance Services in Haverfordwest.
At senior level, Thomas Carroll has appointed experienced Haverfordwest insurance broker Ian Ace to the position of Non-Executive Director of Thomas Carroll Group plc. With a career in insurance spanning over 40 years, Ian was originally Co-Managing Director of Hedley Davies Insurance, which later merged with Antur Insurance Services. Dafydd Jones was capped 42 times for Wales, including in the 2003 Rugby World Cup, and played over 200 games for the Scarlets. He 17
You are more than welcome to call in to meet our experienced team at any time to discuss your risk management needs. Contact the Thomas Carroll Pembrokeshire team: 01437 776 775 Thomas Carroll
Thomas Carroll in the Community We are sponsoring the Customer Service category at the 2015 Radio Pembrokeshire awards
Visit our stand at the Pembrokeshire County Show! 18th, 19th & 20th August 2015
We are proud supporters of Greenacres Animal Rescue, having recently donated four boxes of food, toys and blankets and two signed rugby books for upcoming auctions. Love animals? Show your support greenacresrescue.org.uk
Our fundraising activities and dress down days raised ÂŁ896 for the Paul Sartori Foundation last year. Read more about the local charity here care.paulsartori.org
Thomas Carroll Pembrokeshire Tel:
01437 776 775
Email:
info@thomas-carroll.co.uk
Visit:
www.thomascarroll.co.uk
17 Victoria Place, Haverfordwest Pembrokeshire SA61 2JX 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* With more specialists in Wales than any group in our sector, Thomas Carroll takes care of it all for you, from insurance to health & safety and financial advice. Dafydd Jones Business Development Executive Visit
www.thomascarroll.co.uk Telephone
01437 776 775 17 Victoria Place, Haverfordwest Pembrokeshire SA61 2JX LOCAL窶ポ窶イHARTERED窶ポ窶オNDEPENDENT
*Awarded to Thomas Carroll (Brokers) Limited at the British Insurance Awards 2014