Are you utilising your pension plans?
Financial planning is about utilising every area of your wealth to best achieve your lifetime goals. This simple rule applies whether you’re an individual or a business. As a business owner, you’ll be familiar with sweating your assets to ensure maximum returns but are you using everything you’ve got as efficiently as you could be?
Pension planning is one of those areas of financial opportunity that is often disregarded due to our reluctance to think about our old age, which comes around quicker than we imagine. For this reason, it’s always worth having it at the forefront of your mind, and for most employers this is something of a newfound responsibility with the new workplace pension scheme rules.
Employer pension schemes
Workplace pension schemes have been introduced to benefit those who are currently in the long-term employment of others to ensure that every individual is constantly saving for retirement.
Now, if you’re an employer you’ll already be familiar with the workplace pension scheme. The rules mean it’s now the duty of every employer to set up and administer a pension scheme for all their staff that qualify in order to ensure as many people as possible can benefit from the long-term security of being members of a pension scheme.
Under the new law, you’ve probably put in many hours of work and stress setting up and running a workplace scheme into which you have a duty to automatically enrol all your staff to ultimately supplement their state pensions once they retire. You may well now be viewing it as a lot of unnecessary red tape, but there are actually financial opportunities aplenty for most businesses to derive from all that effort.
Making it work for you
All businesses are different but, for the most part, whatever else they’re concerned with, they share the common aim of maximising their profits and reducing their tax liabilities. And it’s in this area that the time and effort you put into your workplace pension scheme can bring a multitude of options for tax saving down the line.
If you’re looking for additional funding for your business but are keen to shy away from the traditional routes in the banking sector, then using your pension fund for investment may be an option. Pension funds can provide extra scope for purchase of commercial properties or providing loans for further investment.
Utilising your existing pension assets may make it possible to secure extra funding by way of a commercial loan without requiring the usual personal guarantee, and this has the potential to bring tax benefits to your business as well.
Pension assets could also be used to purchase commercial property whether it’s your current premises or an additional property for expansion, so that you make your rent payments to your pension scheme rather than to a commercial landlord. Such an arrangement also allows the pension scheme to borrow additional money; this is allowed under HMRC rules if the there are insufficient resources available to buy the property in its entirety.
How can Expert Wealth Management help?
Naturally there are many rules and regulations governing the use of such assets and it’s for this purpose that Expert Wealth Management can help.
We can show you how to use pension planning as a tax efficient investment vehicle to support your business growth. We’ll also help you to make the most of the available Inland Revenue allowance schemes to help you keep hold of more of the wealth you’ve created.
Expert Wealth Management provides high quality financial planning services, and we’re qualified to provide the best quality financial planning advice to your business. So if you want to know more about how to get the best for your business out of your pension fund contact us today.
For more pension planning advice, get in touch with Expert Wealth Management today. Call 01993 772467, or contact us online.
