As a director in a business, you are in a unique position when it comes to the overlap between corporate financial planning and personal financial planning. A key area of consideration is the area of pensions where there is a range of flexibility in funding options even if you are drawing only a modest salary and topping up with dividends. Furthermore the pension can become a useful source of funding particularly when looking to own your commercial property.
Using a Directors Pension structure, a business owner can use it to transfer wealth from his or her company directly into their personal domain with no immediate taxation. This is an especially attractive prospect for otherwise higher or additional rate tax payers as it provides another tax efficient remuneration strategy to avoid large income tax deductions.
If a husband and wife are both business owners then both may be eligible to fund for retirement via the limited company structure.
Beckford James have considerable experience in advising directors of SME’s and in the area of holding property in pensions as well as advising more broadly on Small Self-Administered Pension Schemes (SSAS), Self-Invested Personal Pensions (SIPP), individual or group defined benefit arrangements, as well as the better known defined contribution schemes and auto enrolment schemes.