Business Financial Advice
Business financial planning encompasses a range of aspects similar to those of personal financial planning. It involves making certain you’ve taken all the right measures to be in the best position to achieve your business goals and the necessary steps to protect your business.
With the experience available at MH Wealth Management in providing financial advice to small and medium sized businesses, we pride ourselves in specializing in the following key areas:
Business Protection
Business protection can be split into two distinct areas, key person protection and shareholder/partnership protection.
Key person protection
Have you ever considered the financial impact on your business if a key employee were to fall ill and unable to work or unexpectedly died? Key person insurance is designed and tailored to individual businesses and whilst not the most exciting topic to consider it is essential so that the business is not placed under financial strain.
Shareholder and Partnership Protection
Many business owners expect their share of the business to automatically pass onto their partners on their death, however this is not necessarily the case. It is vital that the correct protection and agreements are put in place for the partnership to continue. This is also known as succession planning.
Call us today to discuss your current arrangements.
Employee Benefits
Taking care of your employees is a core part of any business as it plays an important role in productivity but also recruiting and retaining high calibre staff. Every business is different and we spend time getting to know your business model, ethos and employees to create a customised employee benefits package.
A vast array of benefits can be placed in a package and they typically include the following: Life insurance, Income protection, Critical illness protection, private medical cover, pensions and many more.
Offering a comprehensive employee benefits package can play an important part in remuneration negotiations with either individual staff or groups.
Director’s Pensions
The aims of a director’s pension is similar to those of a regular pension. It is designed to build up a lump sum so that at retirement the total funds can be used to draw an income.
Directors have access to occupational schemes, stakeholder pensions and personal pensions, but also have access to small self-administered pension schemes and executive pension plans.
Company pension contributions will usually attract corporation tax relief whilst as the director, you will receive tax relief at your highest marginal rate (subject to certain limits).
A pension can be a way of extracting business profits tax-efficiently for the benefit of a director or business owner.
This will grow free from most taxation, provide a tax-free lump sum and an income afterwards, when you decide to retire or take the benefits.
Auto Enrolment
Automatic Enrolment is a government initiative to encourage all qualifying employees to have a pension. Enrolment is phased based on the size of the company with the smallest companies being enrolled by February 2018.
All employers will have to offer their employees with a work place pension scheme by law and you must make employer contributions into the pension scheme for those employees.
Your staging date is the date given to you by The Pensions Regulator and is the date that you should have a qualifying auto-enrolment pension scheme in place.
As a general rule, a qualifying employee is ages between 22 and state pension age, earns at least £10,000 and lives in the UK. However employees who do not meet this criteria can opt to join, and you would be obliged to facilitate this, however the rules on contributions are different for these cases.
You should start getting your business ready for auto enrolment at least 6 months prior to your staging date. MH Wealth Management can help get you ready in time.
Auto Enrolment advice is not regulated by the Financial Conduct Authority.