Case Study – Niche Company

Being approached by an accountant that we work with, he asked if we could help save Corporation Tax for one of his clients who operated a niche specialised Company that had done so well, their anticipated Corporation tax would be in excess of £160K.

After meetings with the 3 Directors, we established a plan to invest in individual Pensions for each of them with regular premiums and a review prior to the Company year end to add additional funds if there was sufficient cash flow within the business at that time.

As the Company made the contributions, these allowable business expenses reduced the amount of Corporation Tax to be paid.

With regular reviews and adapting the individual plans on a bespoke basis to their individual goals and Risk, they now have peace of mind that at retirement their income needs will be met.

By conducting a full Financial Plan, we also considered the impact to the business if one of the Directors died or could not work for a long period of time – and arranged the necessary protection for these potential events.

Then the worse happened and one of the Directors was diagnosed with the big C!

At our next meeting with them all and the accountant, discussions took place as to what would happen to the business and the share holding of the doomed Director if this did happen. As we had arranged relevant life cover for each Director, it was ascertained that the cover was sufficient for the other Directors to claim and use the funds to pay the family for the Directors share of the business. An added advantage was that this would not be liable to tax.

The good news was, that with treatment, he is back to work and no need to claim – but it gave everyone the relief that the correct planning for this was in place.

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