Business funding options for your clients.
At Business Funding Shop, we work with accountants to provide a range of business funding options, adding value to your service and ensuring your client’s business goals can be achieved.
Providing Added Value to Accountants
Nearly all accountants throughout the UK know how stressful year end tax planning for a company can be. To add to this stress, nearly all FD’s and Directors will be leaning on their accountants for some clever corporation tax planning.
It may also sound familiar when as the company accountant the mere suggestion of a large company pension contribution falls on deaf ears. This is sometimes because advising the company FD or perhaps the Director to make a large or even small contribution faces them with a classic dilemma, at BFS, we believe the immediate thinking will usually come down to this.
The Directors or FD’S perception on making a company Pension Contribution.
Making a large company pension contribution of profit to a pension fund would improve the companies tax position, but at the cost of damaging precious cash-flow by literally kissing goodbye to the hard-earned capital until age 55.
In other words, the business cannot access the capital until the pension owners (or members) crystallise the pension benefits in future years. For this reason, they may decide to take a hit on the corporation tax whilst retaining the benefit of this useful capital.
But is there an alternative method?
Not all pensions act the same and looking at the upward trend of corporate pension planning the Small Self – Administered Scheme (or better known as a SSAS) could be a far better company tool.
Paying a large contribution of profit into a SSAS pension will give your clients the required corporation tax relief, but under the rules of the SSAS pension the scheme members are allowed to trigger a loan-back for some, or all of the contribution originally made by the company.
This means more confidence can be gained by making larger company pension contributions but with the hindsight of not losing all the capital, or waiting until age 55.
So, what’s next?
At Business Funding Shop, we understand that tax planning at this level should always be checked by the company accountant, but the setting up of a SSAS should always be done through a fully qualified IFA.
Here the IFA will carry out certain keys tests on the level of allowable annual pension contribution and the underlying investments to take full advantage of this simple but very effective tax mitigation.
Here at BFS, we have small selection of IFA’s very familiar with this type of specialist company tax planning, and the general attributes of setting up your own company SSAS pension.
At Business Funding Shop, we have a close working relationship with many accountancy practices in the UK, providing them with a range of funding options that they can recommend and offer to their clients. If you would like to find out more about our service, give one of our team a call today 0800 047 2389 or fill out a contact form and we’ll get back to you.