17 December 2012

Financial Planning Ideas for Business Owners - 2

Some more ideas - mostly applicable to limited companies...
Make Pension Contributions using Salary Sacrifice
If you're not doing this already, you probably should be...! Agree with staff a reduced salary in return for increased pension contributions. NI will not be required for the pension contributions making everyone a winner (except HMRC).
Key Person Cover
The potentially disastrous consequences of losing a key person through death or illness can easily be insured against.
Shareholder Protection Insurance
If a shareholder dies who will own their shares? This policy, along with a separate agreement, provides the funds to buy back the shares - normally from their family - ensuring business continuity and providing a monetary benefit for the bereaved family.
Tax-Efficient Inward Investment
Investors in your company may be able to benefit from the Enterprise Investment Scheme (EIS), providing significant Income Tax and/or Capital Gains Tax benefits.

Start a Group Life Insurance SchemeThis could be a valuable employee benefit, even if it only applies to two or three directors. It may be cheaper than individually underwritten policies such as Relevant Life Policies, particularly if there are health issues.


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