Legal aid means test must be wakeup call for industry to prioritise victims over profit.

OPINION LEGAL AID MEANS TEST MUST BE WAKEUP CALL FOR INDUSTRY TO PRIORITISE VICTIMS OVER PROFIT

Richard Port MBE, family law partner at George Green Solicitors, who has devoted his career to supporting domestic abuse victims, is urging legal professionals across the UK to take on more legal aid cases following the draw for the World Cup.

This comes after the government opened its consultation for Legal Aid Means Testing, which re-evaluates not only the income and capital thresholds but also wider eligibility criteria. According to Richard Port MBE, the legal industry must support this by taking on legal aid cases to avoid reduced uptake.

“As legal professionals, we have a responsibility to ensure everyone, even those who are unable to pay for legal support, has access to advice and representation. If private cases take precedence over legal aid because they may be more lucrative, then this defeats the objective of having legal aid in the first place.

“All too often, desperate victims who have approached legal aid firms are met with either poor excuses as to why their case cannot be taken on, or the level of service and advice provided falls far short of the expected standard. My work with victims of domestic abuse has highlighted why urgent professional assistance is so important. Therefore, it is critical that victims are provided with the necessary guidance regardless of their financial circumstances.”

Last month, the consultation on legal aid was launched. The proposed changes could see an estimated 5.5 million more people meet the eligibility criteria, including two million people in civil cases, 3.5 million at the Magistrates’ Court and all Crown Court defendants.

Port received an MBE in the Queen’s 2022 New Year Honours List for his legal services to domestic abuse victims and was also named Solicitor of the Year 2022 by Birmingham Law Society. “I am honoured and humbled to have been made an MBE and intend to use this honour to campaign and fight for change in the legal sector and courts to make sure victims - men and women - are given better treatment and better service,” he said. “And while it is extremely positive to see some of the barriers for accessing justice being removed, more action is required from legal professionals for these changes to have an impact.

“With the World Cup coming up this year, it’s probable we will see the number of reported domestic abuse cases increase, much like how Covid showed the true figure in the UK – not an increase as many falsely report. As domestic abuse is a hidden issue it frequently takes a specific event to trigger the victim to report it. I have seen first-hand how a stretched court system adds extra pressure on to victims, with delayed hearings, and lack of continuity in handling domestic abuse cases. Therefore, more needs to be done for victims in the UK.

In 2020, the Office for National Statistics (ONS) reported a 12% increase in the number of domestic abuse cases referred to victim support. Additionally, there was a 65% growth between April and June 2020, in terms of call volume, to the National Domestic Abuse Helpline, compared to the first three months of that year.

“Sadly, the voices of independent domestic violence advocates and support workers are frequently forgotten or not recognised. Given that they deal with victims and their issues day-to-day, getting them involved with government changes would be an ideal next step. Further issues stem from solutions for tackling domestic abuse being used against victims by manipulative perpetrators. The expression ‘give them a shield and their enemies will use it as a sword’ is particularly poignant. We must resolve the basic problems in the first instance.”

Port acknowledged positive moves increasing legislative focus on the issue, including a newly announced pilot scheme by the Government. The pilot will grant judges the ability to review information collated by local authorities, such as the police, before a case reaches the family courts.

“This new scheme is a step in the right direction, with victims no longer having to relive traumatic experiences within court. We’ve also seen positive change to legislation, meaning victims of domestic abuse have more time to report incidents. Hopefully, this takes away the stigma many victims feel subjected to if they haven’t reported an incident immediately, which can often be due to fear of repercussions by the perpetrator. As such, we are likely to see a higher chance for perpetrators to face justice. However, we still have a long way to go and this extends not just to the Government but to legal firms as well,” he explained.

For more information, please visit www. biriminghamlawsociety.co.uk or www.georgegreen.co.uk.

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THE IMPORTANCE OF BUSINESS PROTECTION

A coach once said to me, “find the clients whom you want to work with, truly understand what they want and become a specialist” writes Anthony Richards, Chartered Financial Planner.

At Punter Southall Wealth, this has led me into working predominantly with business owners, who are generally seeking an exit at some point in the future. We have helped plan for a sale, with questions posed such as:

• How much is enough?

• Can I take care of my loved ones and live the lifestyle that I desire?

• How will a potential sale of my business change my tax position?

However, a more immediate need has often arisen, this being protecting the value of the business and the employees.

If you Fail to Plan, you are Planning to Fail

The temptation can be to focus exclusively on the end goal, be that a subsequent venture for a serial entrepreneur, passing a thriving business on to the next generation, or simply funding a comfortable retirement.

My role, therefore, is not simply to look at the long term, but also plan for the unexpected along the way. A robust financial plan needs to be capable of dealing with disruption. What would be the effects of the death or serious illness of a business owner on the family; the value and running of the business and future plans and liabilities? What kind of decisions may you be forced to make? Fundamentally, what would you like to happen?

Although this is a sensitive subject, it’s crucial that we have those conversations and ask them “what would happen if…?” We assist our clients in positively addressing potential needs which they may not have previously considered.

I can’t overstate how important protection can be to provide peace of mind for clients and their families whilst giving them confidence and time to focus on areas which will ultimately drive their business value. If a protection plan has been claimed, this has provided a significant amount of financial and emotional support, often in the form of a cash sum paid to the business to allow continued profitable trading, recruit replacements, repay borrowing or a lump sum payable to the beneficiaries of a deceased or critically ill shareholder allowing the remaining owners to retain control and focus on their future plans.

Know Your Customer

Before we do anything else we spend a great deal of time understanding what our clients want to achieve for themselves and their families.

Our team will look at the business ownership structure, the partnership/ shareholder agreements, and any existing business protection, reviewing these to ensure accuracy, cost and how they work in combination with trusts and/ or cross option agreements. By working with our clients’ solicitor and accountant we will also ensure that everything is structured in a manner that reflects their future plans and objectives, with our eventual solutions being researched from the ‘whole of the market.’

Cost vs Value?

For most business owners, we are concerned with maximising and protecting value for them and their families. I’ve lost count of the number of times I have come across business owners who have life assurance at nolonger-competitive premiums, or who have cover on a personal basis, paid for out of after-tax income. Protection can often be arranged in the name of the company as an allowable business expense resulting in a significantly lower net cost.

Similarly, I have come across business owners who have arranged a Death in Service scheme. This may not be the best option for senior employees with large pension funds as Death in Service policies are generally written under pension rules. If there is a claim, their value is aggregated with pension monies and then tested against the Lifetime Allowance. This could result in a significant tax charge, significantly reducing the amount inherited. For many individuals such protection can and should be restructured.

Our Approach

For business owners in order to receive maximum value, we will initially perform a general health check, working alongside their other professional advisers. As highlighted above, this will also address the protection needs of a business, a subject which is often overlooked.

Bottom line, find time to discuss, review, align and maximise.

For further information on how, working collaboratively with solicitors and other specialists, Punter Southall Wealth can help business owners achieve their desired lifestyle after sale, contact us on 020 3327 5340 or email business.owners@ puntersouthallwealth.com

The value of investments and the income from them can fall as well as rise. An investor may not get back the amount of money that they invest. Past performance is not a guide to future performance. We do not provide legal or tax advice. Please consult any appointed advisers on the possible tax, legal and other consequences of you holding any of the investments contained in this article. Unless indicated otherwise, comment and opinion in this article is based on HMRC’s tax regulations for 2022/23 tax year and tax treatment depends on the individual’s circumstances and may be subject to change in the future.