@TheBusJourney #SMEJourney The Business Journey 4 November 2014
Sam Henderson The Business Journey_Nov2014
Jul 10, 2015
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
@TheBusJourney #SMEJourney
The Business Journey
4 November 2014
@TheBusJourney #SMEJourney
Sam Henderson
“Protecting your Company’s Legacy”
Sam HendersonChartered Financial Planner
Henderson Stone & Co Ltd
Henderson Stone & Co Ltd is an appointed representative of
Caerus Financial Ltd.
McCafferty House, 99 Firhill Road, Glasgow G20 7BE
www.hendersonstone.co.uk
Mobile : 07710 520307
OUR
RESEARCH
WITH
BUSINESSES.
Legal & General’s role is to provide a generic view on the matters discussed in this presentation and our input should not be taken to be,or relied upon, as personal financial advice.
Business Journey
• May 2013 Lifestyle Financial Planning
• Feb 2014 Auto Enrolment
• Nov 2014 Business Protection
Life Expectancy – At Birth
Pensions Issue?
Age Male Female 1908 1st State Pension
(Means Tested – 5 Shillings pw) 49 53
1948 State Pension (Everyone – £1 + 6 Shillings pw)
66 71
2014 State Pension (Basic £113.10 + Pensions Credit)
78 82
2014 Life Expectancy (When Age 65 is Achieved)
86 89
Death Before State Pension Age
Number of Partners Chance 1 13% 2 25% 3 33% 4 40% 5 50%
Consequences?
Most Impact on your Business?
1% Business Premises Broken Into 10% A Major Contract is Lost 23% Business Premises Damaged by Fire 61% Business Owner/Key Employee
Dies/Critical Illness
Business Legacy Issues
•Key Person – Profit Protection
•Business Loan Protection
•Share Owners Protection
Business Legacy Issues
•Key Person – Profit Protection
The policy proceeds are paid directly to the business to be used to help replace a Key Person and cover the loss of profits that may occur. The policy proceeds could help the business to continue trading
Business Legacy Issues
•Business Loan Protection
The policy proceeds are used to help pay off any outstanding loans the business may have.
Business Legacy Issues
•Share Owners Protection
On the death of a business owner, the policy proceeds are paid to the remaining owners to buy the share of the business from the deceased’s estate.
Relevant Life Plan
• For any employee, including a Director
• Designed to provide lump sums on death for an employee’s family
Who Would Want One?
• You as an Employer – Death in Service benefits for employees – if too small for Group
Scheme.
• You as a Director – To provide you own Death in Service benefits.
• You as a High Earner – Where Death in Service benefit is tax efficient as it is not within
Pension Lifetime Allowance (£1.25m)
Cost Comparisons Non-Relevant
Life Plan Policy Relevant
Life Plan Premium £1,000 pm £1,000 pm
Employee Tax
National Insurance Contribution (Assuming 2%)
£34.48 --
Income Tax (Assuming 40%) £689.65 -- Employer Tax
National Insurance Contribution (Assuming 13.8%)
£237.93 --
Less Corporation Tax (Assuming 20%) -£392.41 -£200
Total Cost £1,569.65 £800
A saving of £769.95, which is a saving of almost 50%
Questions?
• When did you last review the Articles of Association for
your Limited Company?
• When did you last assess the consequences of a death in
your business?
• Have you got your Auto Enrolment Plan finalised?
“Protecting your Company’s Legacy”
Sam HendersonChartered Financial Planner
Henderson Stone & Co Ltd
McCafferty House, 99 Firhill Road, Glasgow G20 7BE
www.hendersonstone.co.uk
Mobile : 07710 520307
@TheBusJourney #SMEJourney
Questions for Sam?
Related Documents
