Corporate Financial Planning

We are able to advise on any of the following financial products and services:

Company Pension Plans

Company pension plans, or occupational pension plans as they are sometimes known, are set up by employers to provide retirement and death benefits for their employees. There is no legal obligation on a company to set up a company pension plan. These plans are normally set up either under trust or on a statutory basis. Statutory plans are set up by legislation and provide benefits for employees in the public sector or semi–state bodies.

Share Holder Protection Plans

Private companies are run by Shareholders or directors. On the death of such a director, the surviving directors run the risk of the deceased’s shares passing to someone with no interest in the company.

Life assurance can place funds in the hands of remaining partners/directors to purchase a deceased partner/director’s share. This ensures that funds are available when required. Life assurance should be arranged under an appropriate trust from inception and in conjunction with an appropriate partnership agreement. Agreements can take the form of:

Buy and Sell Agreement – the advantage of this is that the partners/directors know exactly what will happen, but there are distinct inheritance tax disadvantages as generally Business Property Relief is not available.

Cross Option Agreement – this gives the surviving partners/directors an option to buy the deceased’s share within a specified period, usually six months. The disadvantage of this is that it is based on options rather than obligations. The advantage is that it does not prejudice the availability of Business Property Relief.

The partners/directors have an obligation to effect and maintain life policies on their own lives. Regular review is therefore necessary, and costs can be apportioned between partners/directors.

Keyman Insurance

In most organisations, it is possible to identify certain individuals whose contribution is particularly important. Their loss could result in loss of profits, the business not being able to service or repay outstanding loans, or the need to curtail plans for expansion.

A variety of plans could be affected to protect profits, loans and investments, in some cases Permanent Health Insurance plans may also be appropriate.

It is difficult to recommend a level of cover because of the number of variables involved, however some methods of calculation include:

  • Multiple of salary
  • Proportion of total salary bill
  • Multiple of profits

Locum Insurance

Using locums can be a heavy, unplanned expense for GPs or their practices. As a scarce resource, they can command generous fees and studies would suggest that this cost is rising. If you are not properly insured, a six month illness can cost your practice dearly.

Group Life Cover

The death of a key family member can cause financial hardship for his or her dependants. Group Life Cover is a simple and inexpensive way to ensure that money is immediately available to the family if an employee dies in service. This is generally cheaper than an individual insurance policy when arranged on a group basis.

The policy is paid for by the employer, for groups of employees. The cover is based on either a multiple of salary or a fixed amount. A separate income, based on a proportion of salary or a proportion of the employee's pension under an approved company scheme, can be set up. Depending on what you choose, it can pay out:

  • a lump sum of up to 4 times the employee’s salary (salary for calculation purposes is capped at £99,000) for the employee's spouse, dependants or other beneficiaries (at trustees discretion)
  • a lifetime income for the employee’s spouse
  • an income for the employee’s children until age 18 (or 25 if in full-time education or vocational training)
  • an income for other financial dependants, such as an elderly relative, if the employee has no spouse.

Group Critical Illness Cover

Group Critical Illness Cover is an employer–funded cover for employees and their children, with optional cover for spouses. It pays a lump sum on diagnosis of a wide range of critical illness conditions. The money paid out will give employees and their families a vital lifeline, removing financial worries, so claimants can concentrate on their recovery process.

The policy is paid for by the employer, generally for groups of 10 or more employees, although this cover can be provided on a worldwide basis for a limited period, and pays out a lump sum of up to:

  • £250,000 (or 4 times salary if less) if an employee is diagnosed with one of a number of specified illnesses Cover may also be extended to the employee’s spouse or partner, paying out a lump sum if the spouse or partner is diagnosed with a critical illness.

Group Income Protection

Group Income Protection Cover, also known as Group PHI provides an income if the employee is unfit for work for long periods because of injury, illness or disability. The cover can help everyone cope better with long spells off work. Employees know they can afford an appropriate recovery time and employers know they can plan their time and resources more effectively. By effectively managing illness and financially supporting employees could ensure any corrective treatment or counselling needed to help manage the employee's return to work as soon as possible is provided.

The policy is paid to the employer, providing an income based on a percentage of the individual’s salary. The type of policy and recommendation will depend on a number of factors such as:

  • The range of illness definitions – different companies have different definitions on their plans. It is important to look for a policy that will pay out as easily as possible with an excellent claims history
  • The level of benefit and whether you wish to allow for the deduction of state benefits
  • Whether you wish to increase the income payments, to compensate for inflation
  • The deferment period before payment starts
  • The claims payment period, for example 2 years or to retirement age
  • Do your employees need cover in overseas countries?

Group Private Medical Insurance

Group Private Medical Insurance is probably the most effective employee benefit for employers. Of the employee benefits available, this is probably the most useful to employers as it ensures that an employee recovers and returns to work as quickly as possible as well as providing an employee with a choice of treatment times to suit work schedules.

This is designed to cover the costs of private medical treatment for curable, short-term medical conditions (often referred to as “acute” conditions) when a patient is under the care of a Specialist. Cover is available for the costs of Specialists, Surgery, Accommodation and Nursing in a Private Hospital or NHS Hospital with Private Facilities, together with out–patient services such as X–rays, Tests and Physiotherapy.

Asset Finance

Asset Finance can supply the funds if you can supply the business skill to put it to good use. We can organise finance for Commercial Vehicles, Buses & Coaches, Construction Plant, Machine Tools and many other capital purchases for businesses large and small.

Business Recovery

Whether your business is facing a financial crisis or your personal debt is becoming unmanageable, taking early advice is good sense. Our qualified and regulated business can help you. We have helped to save many businesses, large and small, across most industry sectors and can facilitate with a range of business recovery procedures including:

  • Company Voluntary Arrangements (CVA)
  • Administration
  • Administration Receivership (England and Wales)
  • Compulsory Liquidation
  • Creditors Voluntary Liquidation
  • Members Voluntary Liquidation

Debt Recovery

We can offer a regular credit control service for your business or just handle a one–off debt collection on your behalf. Let us credit–check your potential customers and get a comprehensive report to you quickly and efficiently. Our professional team of debt collector agents will work quickly and efficiently to recover your money, resolve any disputes and keep you top of the creditor list. Payments received are then transferred to you as quickly as possible.

We handle both commercial and personal debt collection.

You will be referred to Laurence Hopper, an Independent Financial Advisor who is regulated by the Financial Services Authority.