Get Your Financial Check Up
Writing a will
60% of the UK population a staggering 29.5 million have not made a will.
Many of which assume that their money will automatically go to the relatives of their choice when they die.
If your money is left unclaimed and no blood relatives can be found, your money will go to the Treasury. A record breaking £10billion in 2010.
What happens to your business if you either cannot work or die. These are things that business owners need to look into.
Inheritance tax
Take a look at your overall assets, your business, your home, other property, other sources of income, valuable and movable chattels.
The current threshold is £325,000. This has not changed since 2009
There are a lot of tax reliefs available for this depending on how you have set up your estate. Could you be giving away 40% of your estate (the current inheritance tax rate), to the treasury over and above this threshold.
Most financial advisors do not charge for a first visit consultation.
Savings
Take advantage of the ISA limit. Rates have recently gone up to 3%.http://www.moneysupermarket.com/savings/ is a great website for finding out the best rates of return. Its tax free too.
Pension
The pension system has taken a knock over the last couple of years with the financial services industry being in turmoil. The government has a new scheme of automatic enrolment starting in 2012. Directors are exempt, but do you have an alternative plan. There are many schemes which still offer tax relief on income tax. Could you be an employer who is going to be affected by the scheme, have you included this cost in your budget.
Sickness and Disaster Recovery
How have you planned your business in the event of you or a key member of staff becoming long term sick. Set up your risk assessment and come up with a solution. Keyman insurance, sickness policies, protection of income policies.
What would happen if there was a fire or flood at your premises, or your computer system had a virus.
Loans and debt management
There are still many companies out there that offer assistance if you have got yourself into trouble with debt. Don't put off what could be causing you stress. Consult a professional who can not only help, but give you stress relief too.
Loans and mortgages
The banks are still lending and looking for your business. Yes the system has been tightened up, but there is still credit out there to have. We have access to private investors as well as the banks. So give us a call if this is something we can help you with.
The Grant System
There are still grants available to the small business, it does depend on your industry but they are still out there to be had. http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&topicId=1073858790
Your business and its future
Could you benefit from a business review, do you use your business plan as a focus to plan ahead.
We look at your sales margin
Cost of Sales
Stock turnover
Your overheads
Comparison year on year
Give ideas on tax planning and working capital and liquidity ratios.
We can even help you with your marketing strategy by talking to our professional partners. Let us help you put a comprehensive business plan together. A tool that can be updated as you develop your business.
How is your business structured, if more than one director/partner is there a partnership/Directors agreement, setting out each partners job role, split of the profit etc.
The paperwork, do you have a good advisor that is keeping you up to date with all the current legislation. Putting your important dates in the diary and reminding you of them as they arise.
What is your exit strategy, do you plan on living off the income of the business into retirement, or is the business your pension plan. What is its value in the open market. You need to take into account Capital Gains Tax here.
Ive given you a lot to think about, but looking at all of these areas in turn, will set you up for the future, and will save you money, whether it be by looking at the cost of things, saving time and energy or saving you tax.
This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.
