Keenan Financial Planning specialise in advising business owners in many areas of their finances. Whether you are a Partnership, Sole Trader or Limited Company, talk to Gavin today and make sure that you have your pension and protection policies structured and set up correctly.
For Limited Companies, Executive Pensions are an excellent way to ensure that you are funding for employer and employee pensions in the most tax efficient manner. You can also transfer any old pension arrangements into your new company pension. Funding limits are higher than the normal personal thresholds and contributions by the business can reduce your Corporation Tax Liability.
Further to the tax advantages of such pension arrangements is the opportunity to draw down up to 1.5 times your final salary as a Tax Free Lump Sum, subject to a lifetime limit of €200,000.
I work with business owners and accountants alike, ensuring that all policies are set up correctly, and I provide an annual review service to ensure that your funding goals are on track.
For Sole Traders, Personal Pensions are very popular, reducing your tax bill annually and also saving for a better retirement. I can talk you through the various options available to you, identifying the right company for you and advising you on how much you should save in order to secure a comfortable retirement. I have hundreds of Sole Trader clients including Electricians, Plumbers and Painters.
Ensure that you retain full ownership of your business.
Shareholder (Co-Director’s) Protection is designed with one goal in mind. To ensure that in the event of the premature death of a business shareholder, that the surviving business owner(s) retain full ownership of the Company. In the absence of such an arrangement, the deceased shareholding goes to their estate. This leaves the remaining business owners with the dilemma of probably having to buy back the shareholding with their own funds (provided the beneficiary will even agree to sell!)
By setting up Shareholders Protection, the Company insures the lives of each owner. A Shareholders Agreement is drawn up with your solicitor and signed by all parties. In the event of death, a specified lump sum is paid by the insurance company to purchase the shareholding. These monies then go into the deceased estate, so that all parties are satisfied.
Keyperson’s Insurance is a policy paid for by the Company. It is designed to offset the financial impact of losing a key employee through either illness or death. A lump sum payment is made by the insurer to the Company, the proceeds of which are to be then used to cover the costs of replacing the key employee in either the short or long term, ensuring a smoother transition for the business.
Executive Income Protection
A tax efficient way of taking care of key employees.
If one of your most valued employees was to suffer a long term illness, injury or accident, you’d like to think that they’d be financial secure. Executive Income protection is a valuable benefit to the Employee. They have the peace of mind in knowing that they will be financially secure in the event of long term illness. For the Employer, it is an excellent benefit to be able to provide such Employees. After a defined deferral period (e.g. 4,8,12 or 26 weeks) he policy can pay up to a maximum of 75% of an Employees pre-disability income, less social welfare entitlements.
Employers have the peace of mind also that they are no longer under the moral or financial pressure to continue to pay an Employees wages indefinitely, which can be a huge drain on finances.
For the Self-Employed, it is worth bearing in mind that you may not eligible for disability benefits should you fall long term ill, making the need for cover all that more critical.