My husband and I have run a successful retail distribution company for a number of years. Our financial affairs had become increasingly more complicated as our personal and business lives entwined. We owned our business premises, however a number of people had mentioned that we could have purchased it via our pension – it felt like we may have missed the boat.
Facing large tax bills, the only tax advice we received from our existing adviser was to take dividends and to consider ‘Jimmy Carr’ style tax schemes. We felt our business had outgrown our adviser as he was not able to advise on more complex matters.
“We have great peace of mind knowing our financial affairs are being well looked after. We finally have confidence in our future. Our financial plan is re – visited each year and tweaked to ensure we remain on track, whilst making use of any tax breaks and ensuring changes are monitored.”
On the recommendation of our Accountant, we agreed to meet with Andrew Hall at Sound Financial Planning. From the outset, he took the time to understand our complex situation and objectives. He placed great emphasis on truly getting to know us.
Sound agreed that the property and pension dilemma was an immediate issue, so they started by producing a feasibility report, clarifying the potential costs, advantages and disadvantages. Following the report, they created a 25 month road map, which allowed us to schedule additional pension funding that would be required in the months to follow.
Part of the feasibility report identified that it was not possible to transfer the property into any of our existing pension plans. Andrew explained our options in detail, which we considered and elected to proceed with a transfer. In addition further pension contributions were made. The overall strategy saved us around £144,000 in corporation tax after all costs and charges. The business premises were also moved from our business to personal balance sheet, thereby providing better protection against possible business failure.
Today the business pays £75,000 in rental income into our pensions, which is a business expense, meaning we benefit from further tax relief.
Implementing our strategy was straightforward and easy to follow. Andrew and his team worked in true partnership with us, explaining complex matters in plain English. We are now starting to consider strategies for the best way to help our children financially, whilst increasing the potential sale value of the business as part of our eventual exit strategy.