Business Owners
Financial planning & investment management for business owners
As an owner-operator of a business you have a myriad of financial planning and tax mitigation strategies that are potentially available to you. Below we outline a few of the most common ways that we help our clients minimise the tax they pay and maximise their personal net worth over the long term.
These are illustrative examples only and should not be considered financial advice unique to you personally. Please contact us or another regulated financial adviser if you would like to receive financial advice on these matters.
This is not an exhaustive list but hopefully gives you an idea of the type of work we do with our clients
The Cost
We charge an annual fee of 1% of the investments we manage on behalf of our clients - subject to an annual minimum of £2,400. There are additional costs, including VAT and the cost of the underlying investment funds. Clients do not have to use our investment management services - they can simply pay £2,400 per year for our financial planning service if they wish. You can download our Terms of Business, which includes a full breakdown of the various options and the associated fees, here.
We commit to working with your other advisers, such as your accountant, to ensure that all the pieces of your financial are tied together in a holistic manner.
The Next Step
We offer a free consultation to discuss our services and how they might be relevant for you. Please get in touch via the form below or call Scott Tindle, CFA - our Founder & Director of Wealth Management - directly on 0203 858 0637.
These are illustrative examples only and should not be considered financial advice unique to you personally. Please contact us or another regulated financial adviser if you would like to receive financial advice on these matters.
- Corporate pension contributions. Apart from the £2,000 tax-free dividend allowance, making a corporate pension contribution of up to £40,000 per person is quite likely to be the most tax efficient means of extracting profit from one's business – especially for those aged 55 or older. A corporate pension contribution is made by the company out of pre-tax income and therefore is not subject to corporation tax nor national insurance. Furthermore, pensions are exempt from inheritance tax - making them an excellent means of passing wealth to future generations.
- Buying commercial property within your personal pension. While this is relatively complicated and not appropriate for every business-owner, owning commercial property within your pension can be an extremely tax-efficient way of extracting profit from your company, investing in property and growing the value of your pension.
- If you have sold your business or are planning to do so you will likely have to pay a fairly sizeable capital gains tax. This tax can, however, be at least partially deferred by re-investing some of your gains into certain types of investments. It is important to ensure that these investments - for example, into EIS funds – are suitable for you. If they are appropriate, such investments not only allow for deferral of capital gains but are also exempt from inheritance tax - allowing future generations to benefit from your wealth to its fullest extent.
- In many circumstances, it may be worthwhile utilising your spouse's tax allowances as well as yours, particularly with regards to pensions and ISAs. It continues to astound us how many people – despite their ability to do so – fail to utilise their ISA allowances. Even if just kept in cash, depositing savings into an ISA each year provides for future flexibility that can reap substantial tax savings.
- Retirement and inheritance tax planning is often at the heart of the work we do with small business owners. The first step is to ensure that the retiring business owner will be able to afford their desired standard of living – and that their savings and investments are managed in such a way that will protect this. The potential high cost of care in old age is an important consideration. Secondly, the business owner may be concerned about protecting their estate from inheritance tax and we advise on a range of ways to do this including, when appropriate, the establishment of trusts.
This is not an exhaustive list but hopefully gives you an idea of the type of work we do with our clients
The Cost
We charge an annual fee of 1% of the investments we manage on behalf of our clients - subject to an annual minimum of £2,400. There are additional costs, including VAT and the cost of the underlying investment funds. Clients do not have to use our investment management services - they can simply pay £2,400 per year for our financial planning service if they wish. You can download our Terms of Business, which includes a full breakdown of the various options and the associated fees, here.
We commit to working with your other advisers, such as your accountant, to ensure that all the pieces of your financial are tied together in a holistic manner.
The Next Step
We offer a free consultation to discuss our services and how they might be relevant for you. Please get in touch via the form below or call Scott Tindle, CFA - our Founder & Director of Wealth Management - directly on 0203 858 0637.