sam henderson the business journey_nov2014

@TheBusJourney #SMEJourney

The Business Journey

4 November 2014

@TheBusJourney #SMEJourney

Sam Henderson

“Protecting your Company’s Legacy”

Sam HendersonChartered Financial Planner

Henderson Stone & Co Ltd

Henderson Stone & Co Ltd is an appointed representative of

Caerus Financial Ltd.

McCafferty House, 99 Firhill Road, Glasgow G20 7BE

www.hendersonstone.co.uk

samh@hendersonstone.co.uk

Mobile : 07710 520307

OUR

RESEARCH

WITH

BUSINESSES.

Legal & General’s role is to provide a generic view on the matters discussed in this presentation and our input should not be taken to be,or relied upon, as personal financial advice.

Business Journey

• May 2013 Lifestyle Financial Planning

• Feb 2014 Auto Enrolment

• Nov 2014 Business Protection

Life Expectancy – At Birth

Pensions Issue?

Age Male Female 1908 1st State Pension

(Means Tested – 5 Shillings pw) 49 53

1948 State Pension (Everyone – £1 + 6 Shillings pw)

66 71

2014 State Pension (Basic £113.10 + Pensions Credit)

78 82

2014 Life Expectancy (When Age 65 is Achieved)

86 89

Death Before State Pension Age

Number of Partners Chance 1 13% 2 25% 3 33% 4 40% 5 50%

Consequences?

Most Impact on your Business?

1% Business Premises Broken Into 10% A Major Contract is Lost 23% Business Premises Damaged by Fire 61% Business Owner/Key Employee

Dies/Critical Illness

Business Legacy Issues

•Key Person – Profit Protection

•Business Loan Protection

•Share Owners Protection

Business Legacy Issues

•Key Person – Profit Protection

The policy proceeds are paid directly to the business to be used to help replace a Key Person and cover the loss of profits that may occur. The policy proceeds could help the business to continue trading

Business Legacy Issues

•Business Loan Protection

The policy proceeds are used to help pay off any outstanding loans the business may have.

Business Legacy Issues

•Share Owners Protection

On the death of a business owner, the policy proceeds are paid to the remaining owners to buy the share of the business from the deceased’s estate.

Relevant Life Plan

• For any employee, including a Director

• Designed to provide lump sums on death for an employee’s family

Who Would Want One?

• You as an Employer – Death in Service benefits for employees – if too small for Group

Scheme.

• You as a Director – To provide you own Death in Service benefits.

• You as a High Earner – Where Death in Service benefit is tax efficient as it is not within

Pension Lifetime Allowance (£1.25m)

Cost Comparisons Non-Relevant

Life Plan Policy Relevant

Life Plan Premium £1,000 pm £1,000 pm

Employee Tax

National Insurance Contribution (Assuming 2%)

£34.48 --

Income Tax (Assuming 40%) £689.65 -- Employer Tax

National Insurance Contribution (Assuming 13.8%)

£237.93 --

Less Corporation Tax (Assuming 20%) -£392.41 -£200

Total Cost £1,569.65 £800

A saving of £769.95, which is a saving of almost 50%

Questions?

• When did you last review the Articles of Association for

your Limited Company?

• When did you last assess the consequences of a death in

your business?

• Have you got your Auto Enrolment Plan finalised?

“Protecting your Company’s Legacy”

Sam HendersonChartered Financial Planner

Henderson Stone & Co Ltd

McCafferty House, 99 Firhill Road, Glasgow G20 7BE

www.hendersonstone.co.uk

samh@hendersonstone.co.uk

Mobile : 07710 520307

@TheBusJourney #SMEJourney

Questions for Sam?