If you are a business owner, you are faced with a range of important issues. Here are just a few:
- How do you extract your profits in the most tax-efficient way?
- What is the most effective way to reward and motivate employees?
- How should you make sure that you can afford to retire?
- To whom will you pass on the business when you retire?
- How will you finance expansion?
- What would happen to the business if you (or your co-owner) were to die or fall seriously ill?
Business succession planning
Owning a business can be a very rewarding experience. But what happens if a business owner dies or falls seriously ill? Much will depend on the type of business – sole trader, partnership or limited company – but unless there has been some advance planning, the chances are that what remains may end up in the wrong hands.
Making the most of fringe benefits
Fringe benefits are often used to provide employees and company owner directors with tax efficient ways of receiving remuneration. The rules taxing fringe benefits have changed over the years and as a result, some perks that were tax efficient in the past are no longer attractive, while others have become worth considering.
Levels and bases of, and reliefs from, taxation are subject to change and their value depends on individual circumstances.
This publication is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority (FCA) does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of law and HM Revenue & Customs practice as at 31 July 2018.