Self Funded Trusts
If the answer to any of these questions is yes, a Self-funded Trust is a smart healthcare solution for your business:
- Do you wonder if there is an alternative to traditional forms of healthcare provision for your employees?
- Is your business not getting value for money from its expenditure on high healthcare insurance premiums?
- Are you concerned about the rising level of Insurance Premium Tax (IPT)?
What is a Self-funded Trust?
It is an entirely bespoke healthcare solution for larger organisations that can be managed through a tax-efficient, self-funded trust.
Who needs a Self-funded Trust?
Organisations currently providing healthcare for a large number of staff, and organisations that are considering offering healthcare to their staff in the future.
What are the advantages of a Self-funded Trust?
A Self-funded Trust means you can avoid paying high premiums to an insurer. It is often the case that a company views the funds spent on insurance premiums as wasted money when there are few claims or none at all. By investing in a Self- Funded Trust you know where your money is being spent and any surplus in the Fund is always yours to use in the future.
There are further advantages:
- Current HMRC rules allow advantageous tax treatment.
- You can have your own bespoke range of benefits.
What self-funding options are on the market? How do they work?
You can choose from several options: fully bespoke, non-bespoke, and scheme arrangements. They all work in different ways. Premier Choice’s expert consultants can advise which is best for your business needs.
How much will the business need to pay into the Trust each year?
Usually the amount of anticipated claims plus administration charges. This can vary; again, our consultant will be able to explain in detail.
Is the Company taxed on the money put into the Trust?
Corporation tax deductions on the contributions should be available to an employer. HMRC’s rules governing members’ P11d Benefit in Kind can also be more favourable than those governing traditional private medical insurance costs. We would need to discuss the tax implications with you in greater detail to help you make sure your business stays within HMRC rules.
What if there isn’t enough in the Trust to cover the claims?
This very rarely happens. The scheme administrator insures against this through a stop-loss provision, which ensures claims are covered even if the Trust runs out of funds.
Does the business still need Company Health insurance?
No. This is an effective alternative.
How can Premier Choice help our business?
The Premier Choice approach is to get to know you and your business, understand your needs, and devise a plan that is right for you. As an independent, our advice is impartial and completely up-to-date, backed by many years of industry experience and accumulated expertise.
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