news Winter 2020
+ Championing diversity When we founded Medical Family Finance we did so in the belief that we could be different to the many financial planners in our industry. We knew that we wanted to be friendly, jargon-free and innovative and that our clients and colleagues would be treated fairly. We hope you'll agree that we have done our best to fulfill this aim. We have said many times in 2020 that we are proud to work with a very special group of medical clients who have dedicated their careers to helping patients. It is our privilege that in turn, we can provide a service that supports the people who do so much for others. The majority of our clients work (or have worked) for the NHS, one of the most diverse workforces in the country. We are delighted that our own workforce reflects this diversity – something that we are keen to shout about. In fact, as we mentioned in our client update in October, we are now working with the National Centre Medical Family Finance News Winter 2020
for Diversity to gain accreditation for our organisation that we are doing the right thing. In the next few months, we will be taking steps to prove that equality and diversity are at the heart of our organisation. As part of the Centre’s audit of our company, you may be asked to provide testimonials that we have treated you fairly and that we champion an inclusive workplace culture. We welcome your feedback as we work towards our end goal – receiving our ‘Investors in Diversity’ award. This is the national equality standard and gives organisations a framework to improve practices that focus on Fairness, Respect, Equality, Diversity, Inclusion and Engagement (FREDIE). Of course, you do not need to wait for a survey to let us know how we are doing. If you believe we could be doing more, please get in touch.
+ Director’s message: Dr Mark Martin One positive to come out of the last year has been the use of technology for the greater good. We have all embraced the video call to stay in touch (note that Zoom is now worth more than ExxonMobil, one of the world’s largest oil and gas companies) and I welcomed the chance to enjoy longer summer evenings in the garden rather than battling the homeward bound crowds at Victoria Station. I have been thankful that our IT systems have allowed us to not only survive as a company, but to thrive in this toughest of years. We even took on new members of staff while in lockdown, managing their interviews and training remotely. This time last year pensions tax was a major issue for many of our clients. A survey by the Royal Colleges revealed that nearly half of doctors were planning to retire earlier than expected, citing pension concerns as the reason. In fact, in the last decade, the number of doctors in England and Wales taking early retirement has tripled. And then came the pandemic and we all had a new concern to focus on. We watched proudly as many of our clients worked on the UK’s frontline or returned to help former colleagues, and doctors we have helped for years popped up on news programmes and radio interviews. Inevitably, chatting with clients now brings renewed discussions of leaving the profession for a life less stressful. A chance to take on new challenges or kick back and relax. Of course, not everyone wants to move on – some have expressed a restored faith in the medical field, buoyed by a year of witnessing less red tape (hospitals can now be built in weeks not years!) and more time for compassion. The important point is that the support you have gained from having a financial plan and the structure we have put in place for you should mean you are able to make the choice that is right for you. You have gained or are working towards financial independence and can decide your future based on desire not need. This gives us the greatest pleasure and a sense of a job well done.
Nevertheless, I miss the camaraderie of my colleagues in the office and the chance to sit opposite clients who have become valued friends while chatting through their life’s latest developments. It is often the minor points, mentioned in passing, which can lead to important opportunities. We are therefore delighted to be reconfiguring our office to allow for the best of both worlds in the year ahead. We will have new safe-working pods and meeting spaces for clients who prefer to meet in person, and a digital technology suite where we can host webinars and online interactions. We intend to embrace the new ‘business as usual’ while retaining our commitment to client service. I would like to say a final note of thanks to the staff at MFF who have worked tirelessly to ensure our operations run smoothly, even while everyone works from home. I’m also delighted to congratulate our team members who have managed to study at the same time and pass more financial exams – no mean feat while sharing kitchen tables or WIFI connections. I hope you all enjoy some fun this festive season and a more peaceful 2021. If you are sending season’s greetings – virtual or in the post – and you stumble on a colleague who could benefit from our services, please do mention us. We are always grateful for the recommendation.
+ Client loyalty programme To show our gratitude for the many clients referring people to us, we launched our rewards programme earlier this year and have been delighted with the response. To recap, we are offering you the chance to have your own biography written and published by Dragons’ Den entrepreneurs Story Terrace. A professional writer will draft a book based on your own life story, or that of a loved one, and then it will be professionally published as a legacy for future generations. To qualify, all clients recommending four colleagues or peers who Medical Family Finance News Winter 2020
then contact one of our advisers will receive a Story Terrace package. Also, clients leaving reviews for their adviser on VouchedFor.co.uk will also count towards the programme. Thank you to everyone who has recommended clients to contact us or has uploaded comments on the review site so far. If you have not yet had a chance to complete your review but are keen to help, please visit www.vouchedfor.co.uk and on the homepage, click ‘search for an adviser by name’ before entering the details of your adviser. We promise that the process is very simple.
+ MFF Interview with Mr Nick Flower What made you choose ENT? I knew I wanted something very practical and it had to be a surgical career. I liked the use of technology and the precise nature of the surgery. There were a couple of ENT consultants while I was at St Mary’s who inspired me. It’s also a slightly unknown specialty so it’s good to be an expert in a niche area. How has 2020 been for you? Like many private doctors, my practice was frozen for three months which was quite concerning. I kept busy with gardening and got to grips with new technologies to offer remote consultations. What are you most proud of in your career? Passing the FRCS (Royal College of Surgeons) exams every time and taking up my substantive consultant post at Harlow. I also have many personal highlights from treating patients. Mr Nick Flower is a consultant ENT surgeon, formerly at the Princess Alexandra with the NHS and now exclusively in private practice. He is married with three now grown up children. What made you decide to be a doctor? My uncle was a consultant at Addenbrooke’s so there may have been a bit of influence there but really I think I may have fallen into it. I actually took some time out from medicine after I qualified, working in finance for a couple of years. In fact, I worked alongside MFF’s director Dr Mark Martin!
Who has the easier time – doctors today or when you qualified? I think the guys coming into the profession now have a harder time to make a good living. The administrative and regulatory environment is exhausting. The trouble with getting older is that you believe everything was better in the ‘good old days’ but I think it was definitely more fun for us than it is now. I think the job is getting more onerous and less rewarding (including financially, certainly in private practice). Having said that I would recommend the profession to anyone who is genuinely interested in medicine and there are many positive changes ahead.
I really enjoyed the work and might have carried on was it not for the realisation that I had invested so much time training in medicine that I wanted to get back into it. I think I knew that being a doctor would give me greater job satisfaction and the time out helped my perspective. It was at the time a very difficult decision however. It was hard work to get back into the field but I found a way by changing countries. I spent two years working in ENT in New Zealand before returning to the UK. The standard of medicine is very high there although the training is more prescriptive than in the UK. Are you pleased you found a way back to medicine? Yes, I’ve never had any regrets and believe I learnt a lot from working outside of medicine for a time. I brought those skills, particularly business knowhow, into my private practice and it’s really helped. I run a tight ship and provide a great one-to-one service for my patients. I believe I’ve had an advantage from transferring my skills to medicine. Of course, working in finance in the 90s was fun – I once won a powerboat in a Christmas draw!
What are your plans now? I think I will be retiring within the next year, and once decided, will wind down quickly. Sailing is a big passion and we have a yacht moored in Plymouth so have lots of trips planned including the World ARC, a round the world adventure. I have plenty of other hobbies including sculpture, furniture restoration and even latin dancing so looking forward to the new chapter.
+ Adding value to your investments When we asked clients to review our services on Vouchedfor.co.uk we were delighted that our average score was 4.9 out of five – something which makes us particularly proud. Our aim is never to rest on our laurels and so we have looked carefully at the responses we have received. In order to score a perfect five, we must get better at communicating where we add value to you. Of course, it is easier to showcase financial gains rather than the complex work which goes on ‘behind the scenes’ or the coaching your adviser might employ to help you avoid knee-jerk investing. However, we promise to try harder to show the full picture going forward. Expert advice really can add value to your financial future. One of our key roles is to help you refrain from emotional investing. Most
people will react illogically to normal market volatility which can be costly and harm long-term growth. We also help to save tax – something which has been impacting doctors more and more over the last decade. Not just tax on pensions or assets but we also consider how to structure your investments to minimise your tax liabilities and work across the generations of your family to plan inheritance too. Our advisers ensure your financial plans remain fit for purpose as and when your live evolves – that may include funding private education or university, buying a holiday home or selling your private practice. We are confident that we provide an excellent, niche service at a fair price. Your adviser will be pleased to talk further about where we believe we play an important part in adding to your long-term wealth. Please do not hesitate to ask them.
+ Specialist help In taking account of your wider financial interests, it can help for us to work alongside your accountant to ensure no opportunities for growth or tax management are missed. We usually find our clients’ best interests are served by medical specialists who understand the intricacies of the NHS pay and pension package as well as the most efficient trading structures for private practices. Here, William Myatt, partner with our sister firm and specialist accountants Sandison Lang discusses the new Capital Gains Tax rules on property disposal: “Earlier this year, the government introduced new rules for reporting and paying tax for individual and trusts when disposing of a residential property. Previously, individuals or trusts reported the disposal of a property on their self-assessment tax return and paid the CGT to HMRC by the 31 January following the year of disposal meaning that CGT could have been paid from 10 months to 22 months after the sale. Under new rules, those selling or disposing of a residential property are required to report the gain and pay the CGT liability
within 30 days. If not, interest and penalties can apply. This means sellers have much less time to calculate the CGT, report the gain and ultimately pay the tax. Furthermore, a ‘Residential Property Return’ needs to be submitted to HMRC to report the gains. If properties are held jointly or in a partnership, each individual owner is required to submit the form. These new regulations do not apply if the capital gain is non-taxable for example, if covered by main residence relief but will most likely affect those disposing of second homes or rental property. Calculating the CGT due could be complex. The property owner will need to estimate the tax payable because the CGT rate applied (whether 18 or 28 per cent) depends on their income for the tax year. This can be difficult as many doctors’ income levels fluctuate. We have a useful CGT checklist and can help with essential calculations – please speak to your adviser who can put you in touch with us.”
+ Office opening update Our offices will be closed from Thursday 24 December until Monday 4 January 2021. We intend to reopen our Great Portland Street office with several team members, subject to government guidelines at the time. As Mark has mentioned on page 2, we look forward to working in our new safe ‘pods’ and welcoming clients to the office as soon as we are allowed to do so.
Medical Family Finance 020 7252 5765 Medical Family Finance News Winter 2020
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