Most business owners are familiar with managing their cash flow requirements within their business. A lot of businesses will use cash flow forecasts and projections to make sure that they are constantly on track and will make changes where required. Planning for your financial future on a personal level should be no different.
At SeventySeven Wealth Management, we work with a number of business owners, helping them plan for retirement and beyond. To do this effectively, it is imperative that we take all of your financial affairs into account, to ensure that we can help you to achieve your goals.
As a part of our personalised financial plan, we will use cash flow modelling to help you project forward, building in the various planned events that may happen throughout your life. We are also able to stress test your plan, by inputting unexpected events such as a stock market crash.
Every year, as part of our review, this will be revisited and updated to reflect your current position and give you the opportunity to build in any new goals or aspirations.
Keeping your surplus company cash on deposit over the last few years will have meant the capital is unlikely to have grown with inflation. The interest you would have received would also be low. It is easy to forget the damaging effects of inflation. While it does not reduce the monetary value of your capital, it reduces the real value, eroding the spending power of your money in the future. The small amount of interest you receive is also subject to Corporation Tax!
A possible solution for your company is to look to invest surplus capital held on deposit over the medium to long term.
However, following changes to corporate accounting bases, your company may have to value the investment annually and pay Corporation Tax on any increase in value. This will affect your cash flow and increase your accountancy costs.
Therefore, you should take advice when considering making a corporate investment. The investment you choose should then meet two objectives. Firstly, it should have the potential of providing a better return than a deposit account, not only to keep pace with but to beat inflation, and over the medium to long term aim to provide superior investment returns. Secondly, the investment should be structured so that Corporation Tax is only payable on encashment of units and not annually on any increase in value.
Entrepreneurial journeys are rarely the same and there are a thousand twists and turns in the road including key concerns and challenges. Guidance may be required at any stage of your business lifecycle, ranging from the start-up of your business all the way through to your exit plan.
There are some tried and tested steps that you should take to keep your business on a firm footing and ensure that you are always ready to take the next step.
At SeventySeven Wealth Management, with the help of The Entrepreneur Club, we are able to help you with the following complimentary support:
There are many components involved when running a successful business – marketing, HR, auto enrolment, employment benefits, yet the business itself can be overlooked.
Most businesses don’t have adequate cover in place for the many business risks that exist. Taking the time to evaluate the impact these risks can have and then protecting against them, can ensure the successful running of your company, without any unnecessary risk to your business or personal wealth.
At SeventySeven Wealth Management we can help you to identify these risks and to put sufficient cover in place, with consideration given to tax-efficiency at every step.
When it comes to extracting profits from your Limited company, there are three main routes: salary, dividends and pension contributions. Pension contributions however are often overlooked, even though they can bring significant tax advantages.
Pension contributions can be treated as an allowable business expense and offset against your company's corporation tax bill, so the company could save up to 19%. In addition to this, employers also don’t have to pay National Insurance contributions on these payments. As an individual, there is also potential income tax, dividend tax and National Insurance savings, depending upon how you structure your income.
At SeventySeven Wealth Management, we are able to help you:
When it comes to operating a business, we understand that there are many requirements to consider, not all of which are financial. We have built up a network of trusted professional advisers so that we can all fully support you with your needs.
Typical services include:
Whether you are selling your business or handing it over to the next generation, you will need to ensure that your exit is carefully planned, from both a personal and a business perspective.
Many businesses will qualify for Business Relief however what is often overlooked is that if you simply hold these sale proceeds in your bank account, then you will lose this relief. This means that on death, these assets would be included in your estate for Inheritance Tax purposes.
An alternative to this, is to reinvest these funds into a Business Relief qualifying asset, using the replacement property provision rules. This would allow you to benefit from an immediate Inheritance Tax exemption, meaning that your family would inherit 100% of these funds.
There are many other considerations such as this example which is why we urge you to take expert advice in this area.
Hayden has been working in financial services since 2014, having previously worked in banks and building societies. He progressed and was advising on mortgages prior to joining the team at SeventySeven.
Hayden is a fully qualified wealth adviser through the London Institute of Banking and Finance (LIBF). He is currently studying towards Chartered and is halfway there, having passed his Long Term Care & Pension exams.
Hayden prides himself on his technical ability and specialises in helping business owners plan for retirement and beyond. He is an advocate for using cash flow modelling throughout this process to help his clients ensure that they have a realistic plan. Through his previous experience in mortgages, Hayden also has extensive knowledge of protection which he helps his clients with on a regular basis.
When not at work, you will often find Hayden playing golf or trying to keep fit.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Eloise has been in financial services since 2008 and is able to provide advice on a wide range of planning matters, such as retirement planning, investment planning, estate planning and protection.
Typically, Eloise specialises in providing advice on managing capital and tax planning for successful business owners and wealthy individuals; and as one of a small number of female Chartered advisers in the UK, she is ideally placed to advise successful business women, divorcees and widows.
Eloise joined SeventySeven Wealth Management in 2017, becoming a significant part of an advising community that has an exceptionally strong track record for providing trusted and dependable advice.
Eloise is an experienced presenter on topical financial matters, with a focus on providing simple solutions to complex advice areas. She has been recognised for her work in the industry, winning the ‘European Woman in Insurance Sales’ award in 2015 and was quoted in the ‘Top Performer Journal’ in 2018.
When Eloise is not working, she will be found keeping healthy and competing in a fitness regime that her colleagues admire.
Connor joined SeventySeven Wealth Management in 2018 and has been working in the financial services industry since 2015. Prior to joining, Connor worked in credit management where he helped individuals who had found themselves in difficult financial positions formulate plans to return to financial security.
Connor is passionate about financial education and is always willing to pass on his knowledge to those interested. He firmly believes that a sound understanding of the financial world is the first step toward financial wellbeing. Connor can provide face to face advice on all areas of financial planning, having particular experience in helping clients manage their savings efficiently so that they can work towards achieving their financial goals.
When not working, Connor enjoys spending his time with his family and friends. He also enjoys keeping fit by playing sports such as football and golf.
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