Business Protection while extremely important is often overlooked by owners of businesses. We believe that it should be an integral part of any business. There are a number of areas a business should consider protecting against including:
Many companies have key employees who are integral to the financial success of the company, if these individuals suffer serious ill health or death it can leave companies struggling to cope. By taking out Keyperson Insurance on these individuals the company can protect itself from the financial loss that would occur on the death or serious illness of these key employees.
Personal Shareholder Protection
This type of protection allows the shareholders of a limited company to take out cover to provide funds for the purchase of the shares of a deceased shareholder from their personal representatives with the life insurance contract affected by the shareholder personally.When putting this type of cover in place it is very important to also consult with your own legal and taxation advisers to put a Shareholder Legal Agreement in place so that in the event of the death of a shareholder:
- the surviving shareholders can exercise an option to compel the deceased’s personal representatives to sell the shares to them at market value.
- the deceased’s personal representatives can exercise an option to compel the surviving shareholders to buy the shares back at market value.
Corporate Shareholder Protection
This is an arrangement whereby the company agrees with each shareholder to buyback his shares from his personal representatives on death, with the insurance cost being borne by the company. This ensures security for the Company, and peace of mind for the family/dependents.
We can provide your company with advice on making company pension contributions for owners/directors and for employees. Despite the increases in State Social Welfare Benefits in the last number of years, it is recognised that additional income is necessary to provide for a comfortable retirement. A properly constructed pension plan offers a number of very significant tax advantages. Any contribution by your company (subject to certain limits) to your pension plan are also allowable as a trading expense, thus generating a corporation tax saving. Contributions invested by your company for your benefit are not subject to tax (i.e. no benefit in kind).
A company pension plan is ring-fenced from the company’s assets, and so is protected from the company’s creditors.
An additional tax advantage of investing through a pension is that approved pension funds pay no tax on any investment income or capital gains.
- Dividends are re-invested gross of tax
- Funds grow free of dividend withholding tax
- Funds grow free of any capital gains tax obligations
The final advantage is that on retirement some of the capital accumulated in your fund can be taken out in the form of a retirement lump sum tax free.
For any guidance you need on providing for you or your employees retirement. Please feel free to contact us.