As independent financial advisers we can help you to integrate your business and personal financial planning. Ongoing planning and protection can ensure you achieve your long-term business and personal objectives. An important consideration is to plan an exit strategy for the time when you want to retire and sell or pass the business on.
Key points to address include ensuring the ongoing operation of your business in the event of long term sickness or death of a co-owner or key employee and providing statutory and discretionary work based employee benefits.
For a limited liability company or partnership, if one of the owners dies, their rights to control the business could pass to someone who the remaining owners do not want to work with. Alternatively, the deceased’s beneficiaries might prefer to cash in any inherited assets potentially disrupting the business for the remaining owners. Shareholder and Partnership Protection can ensure that in the event of the death of controlling shareholders and partners, the company or partnership has sufficient funds available to provide for the purchase of the deceased’s share of the business from their beneficiaries.
Key Person Assurance is simply life insurance for key persons within a business. In a small business, this is usually the owner, the founders or perhaps key employees who are crucial to the success of the enterprise. In the event of death, the Company can use the insurance proceeds to ensure the continued operation of the business.
Loan protection ensures that any business debts can be repaid in the event of the death or serious illness of a business owner or other key person.
A Relevant Life Plan is a form of term assurance designed to pay a lump sum if a business owner or key employee dies during the term of the policy. Unlike conventional assurance policies, Relevant Life Plan premiums qualify for Corporation Tax relief at source, but benefits are not taxable in the event of a claim.
Businesses often provide small benefits such as enhanced pension contributions, life cover, permanent health insurance and private medical cover.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’ and became effective in October 2012. Employers who did not already have a qualifying workplace pension scheme in place are required to set one up and make contributions to it on behalf of their employees.