Focus

There are several benefits in providing a pension scheme for your employees, not least the way in which you can tax-efficiently increase the value of the salary packages you offer, thereby improving your ability to recruit better quality people and then to retain them once they are on board. However, you should bear in mind that you are no longer allowed to make membership of a company pension scheme a condition of employment.

All corporate pension schemes are a form of private pension and therefore attract certain tax advantages. Principal amongst these are corporation tax relief on your contributions as an employer, and income tax relief, at the highest rate paid, on any contributions made by the employee. In addition, a portion of the retirement benefits may be taken as a tax-free lump sum, and lumps sums paid to employees' spouses on death are also normally tax-free.

Because private pensions attract tax relief, there are set limits on the amount that can be invested tax-free to stop the system from being abused. These limits vary according to the type of pension. In addition, benefits can only be taken after the policyholder reaches a certain age, and a proportion of the benefits must be taken as income, which is then subject to income tax. Finally, no one is allowed to contribute to an occupational pension and a personal pension at the same time.

As an employer, you can opt to set up a scheme for all your employees or only for the company's directors but, from 1 April 2001, you have been required by law to offer a Stakeholder Pension Scheme to all your employees, unless you already offer a qualifying occupational pension scheme.

With so much junk mail dropping through our doors each day offering cheaper home or car insurance, holiday insurance or credit card protection, you could be excused for wishing the whole industry would just disappear and not bother you again. On the other hand, developments within the insurance market have thrown up certain advantages. For one thing, where there is more competition there is generally more choice and, with a little judicious advice, you could find yourself making considerable savings on your premiums while at the same time enhancing the level of cover you enjoy.

For the majority of us, the only type of insurance we are required to have by law is motor insurance. All other forms of insurance, including home and contents, are optional. However, it does not take a lot of thought to realise that we would be foolish not to cover ourselves, our families and our possessions against a range of potential misfortunes.

As fully independent insurance brokers, Focus can offer impartial advice on any insurance product from across the entire range available. In addition, if your insurance needs are not covered by any existing policy, we can arrange to have a policy individually designed for you by any one of a number of leading insurers.

If you would like to discuss your insurance needs with us, without charge and with no obligation, please contact one of our personal insurance advisers.