Financial Planning

Using pension contributions as a means of accessing profits from a company has always been a worthwhile avenue for many business owners. Even more so today! So why is this something that has not been utilised by so many? There are a number of valid historic reasons for this, but fundamentally many of these are no longer relevant.  So definitely worth re-visiting even if you have done so in the past! A couple of these reasons are considered below: Firstly, perhaps one of the most common reasons for this is timing.  It is often a suggestion made by your accountant at the time you are discussing the previous years accounts and given the dreaded corporation tax bill!  “Maybe next year we can consider using a pension contribution to offset some of the tax” – handshakes and nods of agreement then follow. This cycle happens annually… unfortunately just after that years tax bill!  Xero...

A question many of us will have either asked ourselves or indeed have been asked for an opinion on over recent years. The numerous property programmes on television who can seemingly purchase, renovate and sell three properties for a healthy profit within 60 minutes, coupled with the media scaremongering of the economic world, does suggest bricks and mortar would be a sensible place to look to make a healthy return. But is this really the case? Let’s look at some basis numbers to get a feel for what sort of return could be expected in an average type scenario of a buy to let property. Remember, we are mainly looking at rental return on investment here and not the added value a renovation can bring. So, if we start out with some basic details which are approximate market averages: a property price of £180,000 bought outright (no mortgage). This would expect a...

When considering how best to structure some valuable insights into 'Auto-enrolment', or 'Work Place Pensions' as it can also be referred to, the most appropriate option seemed to be to actually discuss why it has come to be in the first place then simply explain how to ensure you have 'done your bit'. So to start at the beginning,. In August 2014 Moneywise released some statistics which highlighted that almost 12 million people in the UK are not saving enough towards retirement. What this means in reality in that we are living longer with many having to rely on the basic state pension. The reliance on the state pension is what brought about this action. It was decided the burden should be shifted onto employers who must all, by 2017, offer a pension scheme to their employees. In reality, it is a positive thing for the employee - which is important when...

Q: I’m confused, what is the difference between ‘Auto-Enrolment’, ‘Work Place Pensions’ and ‘Stakeholder Pensions’? A: All three terms mostly relate to the same thing. Auto-Enrolment is the term used to reference an employer's recent obligation to provide a scheme to their employees. Work Place Pension is what you would call a scheme. A Stakeholder Pension refers to the previous rules whereby a scheme needed to be available should someone request one. The big difference here is that an employer was not obligated to pay into a scheme like they are now. Q: What do I need to do? A: Under new government legislation, all employers in the UK must provide a compliant work place pension scheme to their employees. The employer must contribute along with the employee with a view to building up a pension provision for retirement. Q: When do I need to do this by? A: All firms have what is known...