Pro-active financial advice for businesses
Whether you are a limited company, partnership or sole trader and whether your business is large or small, you may have a requirement for business advice in various areas of financial planning.
If you have surplus funds in your business that are held in a low-interest current or savings account you may wish to invest some of these to give the potential for better returns.
This is a very important area of financial planning for businesses and can incorporate a number of different needs:
Pensions for business owners
This could be setting up a simple Personal Pension plan and making company contributions, to improve retirement funding and provide tax efficiency for the business. Alternatively it could involve setting up more complex pension schemes such as a Self Invested Personal Pension (SIPP) or a Small Self Administered Scheme (SSAS) to give more flexibility and opportunities for business planning, such as using pension funds to invest in the business premises.
Pensions for employees
For businesses with a very small number of employees this may simply involve making an employer contribution to a Personal Pension plan as part of an employee’s remuneration package. For businesses with more employees, generally five or more, it may involve setting up a Group Personal Pension scheme.
Legislation in 2008 introduced workplace pensions reform, which took effect from October 2012 and is gradually being phased in, starting with the largest employers first and applying to even the smallest of employers by October 2018. It means that all employers will have to offer a qualifying workplace pension scheme to their workers and automatically enrol eligible workers into the scheme.
It is important to ensure that your business is protected in the event of illness or death and the following types of protection can be considered:
Life assurance and critical illness cover
This may be in connection with a business loan to ensure that the business can repay the loan if a business owner dies or suffers a critical illness. It could be to provide protection for a business owner’s family in the event of his or her death, with potential tax benefits for limited companies. It could also be used to provide valuable funding to a business for recruitment or training in the event of the death or illness of a key employee.
Executive income protection
This is designed to provide a level of income in the event of injury or illness that leads to loss of earnings. The policy is owned by the company and can be taken out on company directors or selected employees, with the company receiving Corporation Tax relief on the premiums.
Shareholder or partnership protection
This helps the surviving business owners keep control of the business if a shareholder or partner dies and his/her share of the business passes to their spouse or another relative or person, who then owns part of the company. Such a scenario can cause serious problems for your business. Taking out life assurance on shareholders or partners, in conjunction with a suitable legal agreement, can help to ensure that control stays with the remaining business owners. It can also incorporate critical illness cover if required.
Group protection schemes
These can be set up to provide various benefits, such as life assurance, critical illness cover or income protection for your employees as part of their remuneration package.
You may have a requirement within your business to raise finance for various purposes, whether it is to purchase additional premises, improvements to existing premises, to purchase plant or equipment or other reasons. This would be a commercial mortgage secured against commercial property, which is only available from a limited number of lenders.
Arrange a consultation
Whichever area you wish to consider, a quick call to Gibbons to arrange a meeting with one of our independent financial advisers will help you to select the right product or products for your needs. Not only that, we’ll take care of the paperwork too and deal with the providers on your behalf. Contact us »