Offering employees access to a wider range of benefits

We are aware of the need for our business and professional clients to retain key members of staff, given the competitiveness of the skills market and the costs associated with recruitment and training.

We help employers to consider the potential benefits of offering employees access to a wider range of benefits. We have considerable experience of ‘flexible remuneration packages’ and can advise on the tax treatment of additional benefits, both from an employer and employee perspective.

As well as considering cost effective enhancements to existing employment terms, we regularly review existing arrangements to ensure their competitiveness, in terms of both cost and benefits.

Our comprehensive employee benefits service for employers includes:

• Death in Service Schemes: a cost and tax effective way of enhancing employees’ remuneration. Life assurance benefits of up to four times an employee’s salary can be provided, at a fraction of the cost of an individual life policy and usually with no medical evidence. Costs may be allowable as a business expense, in certain circumstances, subject to Inland Revenue approval.
• Occupational Pension Schemes (OPSs): advice on the full range and structure of final salary and money purchase occupational pension schemes, with the aim of reducing administrative complexity and costs.
• Group Pension Schemes: including personal pension schemes (GPPs), Stakeholder schemes, Self Invested Personal Pension Plans (SIPPs). Existing arrangements are reviewed and, wherever possible, enhanced. Employers are given clear guidance on the tax treatment of pension contributions, the impact of forthcoming pension legislation on their responsibilities, and terms of pension provision for staff.
• Group Critical Illness Schemes: can provide either the business or the individual employee with a substantial tax free lump sum, should that person suffer a life threatening illness, or permanent incapacity.
• Group Income Protection Schemes: these are designed to provide the individual concerned with a regular income, for the duration of any prolonged absence from work, due to ill health or accident. Premiums are an allowable expense and benefits can be paid tax free, to Partners and to employees paying their own premiums.

Costs are typically far lower than for individual income protection policies and cover can usually be provided with no medical evidence. Schemes can be extended to cover key employees and other members of staff. We also review existing schemes to ensure their continuing suitability and competitiveness, in terms of both costs and benefits.