Director Pensions
Pensions are often one of the most tax-efficient savings products. For company Directors, employer pension contributions can offer a very tax-efficient method of drawing company funds whilst also saving toward your retirement. Company Directors will often draw most of their income in the form of dividends, which limits the amount of private pension contributions they are able to make. By utilising employer pension contributions we can overcome some of these limitations and make use of this very effective financial planning strategy.
We can help by calculating allowable pension contributions and setting up your new pension, or arranging for the payment to go into an existing qualifying scheme.
Company Protection
It is often necessary for businesses to have life cover in place covering the lives of particularly significant members of the organisation.
- Shareholder Protection – Typically provides the company with the funds to purchase a shareholder’s interest in the company in the event of their deaths. This releases the funds for the deceased’s family’s benefit, which may otherwise be difficult to liquidate unless the company has sufficient reserves to do so without the life cover.
- Key Person Protection – Typically provides the company with financial security to protect the business against losses which might be incurred from the loss of a key member of staff. This may result from the loss of skills, knowledge and business contacts, as well as a disruption to the business’ operations. These funds may be used for a variety of purposes, such as to subsidise the business’ cash flow during the disruption, as well as to recruit a replacement.
- Relevant Life Cover – A life insurance for company employees and tailored to your needs. This can provide an attractive and tax-efficient benefit where your business is not suited to a group life scheme.
With different providers offering different benefits, it can be hard to establish which policies most suit your circumstances. We can assist you in calculating the level of cover your business requires and recommend a suitable arrangement that meets your needs, without the hassle meaning you can focus on running your business.
Financial planning is a complex area which varies greatly depending on individual circumstances, and holistic independent financial advice should be sought prior to making any changes. Click here to book your free initial General Financial Review.