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Insurance Loss Adjusters - what are they and why should I use one? Large commercial insurance claims are complex and time consuming. That’s why insurers appoint loss adjusters to assess the cause of the loss, investigate whether it’s covered by your policy and to suggest an appropriate settlement figure or basis of reinstatement.
n Liaise with your accountants to ascertain and itemise accurate loss of trading profits n Arrange building inspections n Negotiate interim claim payments from the insurer n Source temporary premises Typically this will cost between 6% and 8% of your total settlement, but you can buy insurance to cover the fees of a loss assessor in the event of a large loss – generally upwards of £5,000 in value.
While loss adjusters are independent, they’re paid by insurers to represent their interests. Appointing a loss assessor will mean you have an expert to represent yours, and to negotiate the most favourable interpretation of the policy and the best final settlement for your business.
Annual premiums for these policies are in the range of £175 to £500, making the insurance affordable. If you need it, you’ll recoup many years’ of premiums just from the saving you make in the amount of management time spent on dealing with the claim, let alone from the better settlement you’re likely to receive by submitting one that’s professionally prepared and negotiated.
They’ll drive the claim’s process, relieving you and your senior management of a lot of work. You can expect your loss assessor to: n Attend your premises within 24 hours to quantify the damage
n Create itemised inventories of damaged stock/equipment
n Deal with meetings and correspondence
n Source valuations for replacement products
The personal savings allowance – major changes to how bank interest is taxed Until recently, savings income such as bank and building society interest was taxed up-front at 20%.
income, although this number is possibly exaggerated by the poor rates of interest available in the current climate.
Every £100 of bank interest had £20 tax collected at source, with the remaining £80 paid to the individual. For basic-rate taxpayers this meant that no further tax was payable, but high income earners would have further tax to pay, usually via their tax return.
Individuals with very low earnings and large amounts of savings income Michael Morter, should note that they can take advantage Manager of a further tax-free allowance known as the ‘starting rate’. Tax can never be too straightforward after all!
That all changed in April 2016 with the introduction of a personal savings allowance. The allowance is available to basic-rate taxpayers at £1,000 per year, and higher-rate taxpayers at £500 per year. Additional-rate taxpayers do not get the allowance. Any savings income earned within the allowance amount is essentially free from income tax.
For many, this change will make life simpler, but those with large amounts of savings income may find they have to do a tax return where they would not have before.
At the same time, interest will now be paid without any tax being taken at source. According to official statistics the introduction of the allowance will mean 95% of people no longer have to pay tax on savings
As an aside, interest earned in a tax-free account such as an ISA will not count towards the personal savings allowance. This tax change is a good reminder to make use of ISA allowances, having discussed it with a financial adviser first, of course!
For more information contact Michael Morter at Larking Gowen on 01603 723630 or at michael.morter@larking-gowen.co.uk This article is designed for the information of readers. Whilst every effort is made to ensure accuracy, information contained in this article may not be comprehensive and recipients should not act upon it without seeking professional advice. Larking Gowen is registered to carry out audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. ©Larking Gowen.
JULY/AUGUST 2016
NORFOLK VOICE • THE MAGAZINE OF NORFOLK CHAMBER OF COMMERCE AND INDUSTRY
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