Pensions and taxes may not be words to light a fire in your heart, but they’re a big part of understanding how you’ll approach retirement.
If you already have pension arrangements in place, we can help you to find the most efficient way to use them, and if you’re struggling with a set of separate pensions we can help with consolidation. We’ll help you to bring everything together, making it easier to understand what you have available.
People and pensions
If you employ people you may well have a scheme in place for them, but curiously many business owners rely on selling their business to fund retirement. The thing is, avoiding pension planning can also mean avoiding some useful tax breaks that could make a big difference to your future lifestyle.
Limited companies can treat pension contributions as an allowable business expense, offsetting their corporation tax bill. Pension contributions can also be a tax-efficient way to get money out of your business and making the most of pension allowances can help reduce Capital Gains Tax (CGT) when you sell your company.
We can help you to explore things like Entrepreneurs’ Relief, which depending on the structure of your company may help you to reduce the CGT burden. Ultimately your tax position will depend on the type of company you run and the method of sale you’re carrying out, but we’ll help you to explore all opportunities and structure a sale that keeps your tax liabilities to a minimum.
If you’re still a good few years away from retiring and you don’t have arrangements in place, it’s not too late. We can help you to set up a pension that makes the most of tax benefits and opportunities. If retirement is a little more imminent for you, then we can still help you to retire without shouldering a tax bill that’s any heavier than it needs to be.
We’ve put together a short guide called ‘A Smarter Approach to Planning Your Retirement’. In this guide we’ll show you how to make a friend of the future and face the next stage of your life with clarity and confidence.
We’ll be back on the blog next week with Step 8: Get a second opinion.
Get in touch
If you’re thinking about retirement, we’d love to find out how we can help. Whether you’ve been planning it for a while, you’re just starting out or it’s finally time to stop putting it off, the right time is now.
Proper planning early on will help you to understand when you can retire, what that retirement may look like, what you’ll do with your business and how you’ll make sure it’s all done securely.
Along with professionalism, expertise and experience, you can count on respect, transparency and a lifelong commitment. We’ll celebrate your successes with you, but we’ll always have the courage to tell you the truth about your money.