Financial planning for business owners
The Financial Plan models what you take from your company, what the business could be worth, and your pensions, property and stop date together, every year to age 100 with UK tax applied.
The business at zero and at £150,000
Every plan models the business twice: at zero and at the figure you have in mind. The gap shows how much of your retirement rests on a sale.
Dave, 54
Owns a plumbing and heating firm with four staff. Takes £12,570 in salary and about £40,000 in dividends, and assumed a sale would raise £150,000. The business had never been valued.
Worked example from a Financial Plan.
Sale raises nothing
In two thousand reshuffled runs the money lasted in 41%.
Sale raises £150,000
With roughly £280,000 left. Dave chose to stop at 62 and spent six months making the business less dependent on him.
What the plan takes from your company
Salary and dividends
What you take each year, taxed at the personal rates that apply, including dividend tax and the Scottish bands.
The business itself
Modelled at zero and at your figure, with the year you expect the money to arrive.
Payment over time
A sale paid over three or five years from future profits, modelled as staged payments that may not all arrive.
Costs the company pays now
The car, travel and other costs that move to you, or stop, when you stop work.
Inheritance tax
The tax on your projected estate, including the residence nil-rate band taper above £2m.
Your accountant's figures
The tax on taking money out and on a sale goes into the plan. Buzz Accounting clients' figures are already with us.
Coaching for business owners
- What you personally need the business to provide
- Household spending
- Emergency reserves, personal and business
- Cover if you could not work for six months
- Retirement and exit goals, with real figures
Questions from business owners
Do I need to be a Buzz Accounting client?
No. If you are, your business figures are already with us, which shortens the fact-find. If your accounts are done elsewhere, we work from what you take each year and the figure you have in mind for the business.
Should I take more out of the company and pay it into a pension?
The plan models both routes side by side in your numbers, so you see what each does to the age your money runs out. Which pension and how much is a regulated recommendation, which we can refer to Buzz Financial Services.
What if my business cannot be sold?
Every plan models the business at zero. If the projection holds at zero, any sale is a bonus. If not, you find out while there is time to fund retirement another way or make the business easier to sell, which takes two to three years.
What does it cost?
£1,500 for the Financial Plan, paid once, and a couple pays the same. Ongoing planning is £49 a month. For owners within ten years of stopping, we suggest both.
Start with a call
An hour with a planner on whether the Financial Plan suits your position.