One Life Financial Planning Limited | Independent Financial Advisers
Business Clients
A Business, whether it be a Sole Trader, Partnership, Limited Company or PLC requires specialist financial advice to address it's own distinctive needs, coupled with the needs of the business owners/operators and employees.
We liaise closely with the accountants and legal advisers to the business so as to ensure that our understanding of the situation moving forward is such that our advice serves only to enhance the financial wellbeing of the business. Accurate risk assessment, and a thorough knowledge of the ever changing market and legislation issues allow us to identify the most cost effective and workable solutions, whilst at the same time empowering the business through "proactive" advice. We firmly believe that our relationships with our clients are based upon the "two way street" principle; we always ensure that our clients are kept in the picture. Equally we do ask that they extend the same courtesy to us. This allows us to update all records and if need be take action on the client's behalf, possibly preventing or minimising adverse financial impact to the business.
In the interests of financial security, business stability and continuity, it is essential for private limited companies to provide a safety net following the death of a shareholder.
Shareholder Protection is usually put in place to ensure that, on the death of a shareholder, their shares are available for the other directors to buy and there is sufficient cash available to buy the shares.
This is normally done by:
Taking out a life insurance policy for each director to the value of their shares.
Placing these life insurance policies in trust so that any payout is available to the remaining shareholders without any tax implication
Setting-up a Cross Option Agreement between the shareholders so that if the options are exercised, the holder of the shares must sell them and the other directors must buy them
The risk of not setting up some Shareholder Protection are as follows:
Shares may go to the deceased's family, which has no interest in the business and may prefer a cash lump sum
The company or other shareholders may not have the resources to retain control by buying the deceased's shares
The shares may be taken over by someone who does not share the company's objectives, and they may even be a competitor
Shareholder Protection is usually put in place to ensure that, on the death of a shareholder, their shares are available for the other directors to buy and there is sufficient cash available to buy the shares.
This is normally done by:
Taking out a life insurance policy for each director to the value of their shares.
Placing these life insurance policies in trust so that any payout is available to the remaining shareholders without any tax implication
Setting-up a Cross Option Agreement between the shareholders so that if the options are exercised, the holder of the shares must sell them and the other directors must buy them
The risk of not setting up some Shareholder Protection are as follows:
Shares may go to the deceased's family, which has no interest in the business and may prefer a cash lump sum
The company or other shareholders may not have the resources to retain control by buying the deceased's shares
The shares may be taken over by someone who does not share the company's objectives, and they may even be a competitor
In the interests of financial security, business stability and continuity, it is essential for partnerships to provide a safety net following the death of a partner. There should also be a partnership agreement in place that specifies that the partnership should continue on the death of a partner. If this is not in place then in England and Wales, on the death of a partner, the partnership is automatically dissolved. (Partnership Act 1890).
Partnership Protection is usually put in place to ensure that, on the death of a partner, their share of the partnership is available for the other partners to buy and there is sufficient cash available to buy the share.
This is normally done by:
Taking out a life insurance policy for each partner to the value of their share of the partnership.
Placing these life insurance policies in trust so that any payout is available to the remaining partners without any tax implication
Setting-up a Cross Option Agreement between the partners so that if the options are exercised, the holder of the share must sell them and the other partners must buy them
The risk of not setting up some Partnership Protection is as follows:
Their share may go to the deceased's family, which has no interest in the business and may prefer a cash lump sum
The Partnership or other partners may not have the resources to buy the deceased's share of the Partnership
The share may be taken over by someone who does not share the Partnership's objectives, and they may even be a competitor
Partnership Protection is usually put in place to ensure that, on the death of a partner, their share of the partnership is available for the other partners to buy and there is sufficient cash available to buy the share.
This is normally done by:
Taking out a life insurance policy for each partner to the value of their share of the partnership.
Placing these life insurance policies in trust so that any payout is available to the remaining partners without any tax implication
Setting-up a Cross Option Agreement between the partners so that if the options are exercised, the holder of the share must sell them and the other partners must buy them
The risk of not setting up some Partnership Protection is as follows:
Their share may go to the deceased's family, which has no interest in the business and may prefer a cash lump sum
The Partnership or other partners may not have the resources to buy the deceased's share of the Partnership
The share may be taken over by someone who does not share the Partnership's objectives, and they may even be a competitor
Key Man (or Key Person) Insurance is essentially a form of life insurance for businesses. It is generally taken out by a business to compensate for financial losses that would arise from the death or extended incapacity of the key individual(s) of the business specified in the policy, and in turn ensure the continuity of the business.
The policy does not cover actual losses incurred, but instead compensates with a fixed monetary sum as specified on the policy itself.
There are generally three categories of loss for which Key Man Insurance can provide compensation:
Protect losses related to the extended period when a key person is unable to work; to provide temporary personnel; and, if necessary to finance the recruitment and training of a replacement.
Protect profits such as offsetting lost income from lost sales; or losses resulting from the delay or cancellation of any business project that the key person was involved in; or loss of opportunity to expand, loss of specialised skills or knowledge.
Protect anyone involved in guaranteeing businesses loans or banking facilities. The value of insurance cover is arranged to equal the value of the guarantee given by the key person.
As a result, a Key Man can be anyone directly associated with the business whose loss can cause financial strain to the business. For example, they could be a Director of a company, a Partner, key sales people, key project managers and people with specific skills or knowledge which is especially valuable to the company.
The policy does not cover actual losses incurred, but instead compensates with a fixed monetary sum as specified on the policy itself.
There are generally three categories of loss for which Key Man Insurance can provide compensation:
Protect losses related to the extended period when a key person is unable to work; to provide temporary personnel; and, if necessary to finance the recruitment and training of a replacement.
Protect profits such as offsetting lost income from lost sales; or losses resulting from the delay or cancellation of any business project that the key person was involved in; or loss of opportunity to expand, loss of specialised skills or knowledge.
Protect anyone involved in guaranteeing businesses loans or banking facilities. The value of insurance cover is arranged to equal the value of the guarantee given by the key person.
As a result, a Key Man can be anyone directly associated with the business whose loss can cause financial strain to the business. For example, they could be a Director of a company, a Partner, key sales people, key project managers and people with specific skills or knowledge which is especially valuable to the company.
Pensions - SIPP / SSAS / Group
SSAS
A SSAS is a small occupational pension scheme that is set up by the directors of a business that want more control over the investment decisions relating to their pensions and in particular, to use their pension plans to invest in the business. As such, each member of the SSAS is usually a trustee.
The following are features of a SSAS:
occupational pension scheme,
members are usually employees or directors of the sponsoring employer,
there is no limit on the number of members but, as the name suggests, these schemes tend to be relatively small,
each member has a notional share of the SSAS funds including non-insured assets such as property and possibly insured money held in a trustee investment plan.
SIPP
A SIPP is a personal pension plan set up by an insurance company or specialist SIPP operator where the member has greater control over the investments. Anyone can take out a SIPP providing they meet the provider’s eligibility requirements. These are usually based on a minimum fund size because of the higher costs involved in running a SIPP compared to a standard personal pension. Other features include:
personal pension plan,
the option to invest in both non-insured assets such as unit trusts and property and insured assets such as a trustee investment plan,
member’s employer can contribute to the pension plan and may operate payroll deduction on the member’s behalf.
SIPP/ SSAS Investments
A SSAS has more flexibility than a SIPP when it comes to investment. This is because current legislation allows investments to be made in the sponsoring employer. A SIPP doesn’t have a sponsoring employer (although any employer can contribute to it) but a SSAS does. This, therefore, allows the SSAS to invest in the company. Let’s have a closer look at the investment differences between a SSAS and a SIPP:
SSAS can lend money to sponsoring employers. Loans are not allowed to any members or any person/company connected to the member. Any such loan made by a SIPP would be an unauthorised payment.
Can invest up to 5% of the fund value in the shares of the sponsoring company. A SIPP doesn’t have a sponsoring employer so can theoretically invest up to 100% of the fund in the shares of any company, including one run by the member.
Can buy shares in more than one sponsoring employer so long as the total market value at the time the shares are bought is less than 20% of the total value of the scheme. If the company involved is controlled by the SIPP member or an associated person, investment in that company would be regarded as investing in taxable property.
SSAS can potentially own 100% of a company’s shares so long as the value doesn’t exceed 5% of the value of the SSAS. A SIPP can potentially own 100% of a company's shares so long as the company is not controlled by the member, and this is acceptable to the SIPP provider.
If either a SSAS or a SIPP directly or indirectly acquires taxable property, an unauthorised tax payment on the member will apply. In addition, the scheme administrator will be liable to a scheme sanction charge both on income from the taxable assets and capital gains on their disposal. This effectively means that it’s not possible for SIPPs to invest in a company controlled by a member as virtually every purchase made by that company would be an unauthorised payment.
Group Pensions
A group personal pension is a collection of individual pension plans set up as a group.
One of these plans belongs to you. And because it's set up this way, you benefit from lower charges than you might get if you set up a plan on your own.
Your contributions are taken directly from your salary and paid by your employer to the pension provider who invests them in investment funds until you start taking your retirement benefits. And when that time comes, you will use the retirement savings that you have built up to give you a regular income in your retirement.
Tax benefits
To encourage you to save into a pension, the Government offers generous tax advantages:
The contributions you make benefit from tax relief. So each time you pay into your plan, the taxman pays in too.
If you're a higher rate taxpayer you can claim additional tax relief through your self-assessment.
Your savings are allowed to grow in a tax-efficient way.
If you die before you start taking your pension, it can be paid as a tax-free lump sum to your family or someone else you choose.
A SSAS is a small occupational pension scheme that is set up by the directors of a business that want more control over the investment decisions relating to their pensions and in particular, to use their pension plans to invest in the business. As such, each member of the SSAS is usually a trustee.
The following are features of a SSAS:
occupational pension scheme,
members are usually employees or directors of the sponsoring employer,
there is no limit on the number of members but, as the name suggests, these schemes tend to be relatively small,
each member has a notional share of the SSAS funds including non-insured assets such as property and possibly insured money held in a trustee investment plan.
SIPP
A SIPP is a personal pension plan set up by an insurance company or specialist SIPP operator where the member has greater control over the investments. Anyone can take out a SIPP providing they meet the provider’s eligibility requirements. These are usually based on a minimum fund size because of the higher costs involved in running a SIPP compared to a standard personal pension. Other features include:
personal pension plan,
the option to invest in both non-insured assets such as unit trusts and property and insured assets such as a trustee investment plan,
member’s employer can contribute to the pension plan and may operate payroll deduction on the member’s behalf.
SIPP/ SSAS Investments
A SSAS has more flexibility than a SIPP when it comes to investment. This is because current legislation allows investments to be made in the sponsoring employer. A SIPP doesn’t have a sponsoring employer (although any employer can contribute to it) but a SSAS does. This, therefore, allows the SSAS to invest in the company. Let’s have a closer look at the investment differences between a SSAS and a SIPP:
SSAS can lend money to sponsoring employers. Loans are not allowed to any members or any person/company connected to the member. Any such loan made by a SIPP would be an unauthorised payment.
Can invest up to 5% of the fund value in the shares of the sponsoring company. A SIPP doesn’t have a sponsoring employer so can theoretically invest up to 100% of the fund in the shares of any company, including one run by the member.
Can buy shares in more than one sponsoring employer so long as the total market value at the time the shares are bought is less than 20% of the total value of the scheme. If the company involved is controlled by the SIPP member or an associated person, investment in that company would be regarded as investing in taxable property.
SSAS can potentially own 100% of a company’s shares so long as the value doesn’t exceed 5% of the value of the SSAS. A SIPP can potentially own 100% of a company's shares so long as the company is not controlled by the member, and this is acceptable to the SIPP provider.
If either a SSAS or a SIPP directly or indirectly acquires taxable property, an unauthorised tax payment on the member will apply. In addition, the scheme administrator will be liable to a scheme sanction charge both on income from the taxable assets and capital gains on their disposal. This effectively means that it’s not possible for SIPPs to invest in a company controlled by a member as virtually every purchase made by that company would be an unauthorised payment.
Group Pensions
A group personal pension is a collection of individual pension plans set up as a group.
One of these plans belongs to you. And because it's set up this way, you benefit from lower charges than you might get if you set up a plan on your own.
Your contributions are taken directly from your salary and paid by your employer to the pension provider who invests them in investment funds until you start taking your retirement benefits. And when that time comes, you will use the retirement savings that you have built up to give you a regular income in your retirement.
Tax benefits
To encourage you to save into a pension, the Government offers generous tax advantages:
The contributions you make benefit from tax relief. So each time you pay into your plan, the taxman pays in too.
If you're a higher rate taxpayer you can claim additional tax relief through your self-assessment.
Your savings are allowed to grow in a tax-efficient way.
If you die before you start taking your pension, it can be paid as a tax-free lump sum to your family or someone else you choose.
Group Income Protection;
is designed to help employers to manage long term sickness absence more effectively. By providing a guaranteed income for employees who are unable to work as a result of illness or injury, an employer can help to support them financially through what can be an emotionally and financially stressful time.
When income is protected in this way, the employee's pension, National Insurance contributions and retirement plans can be maintained, despite the break in normal salary payments.
We believe that Group Income Protection is not just about paying claims - it is about supporting an organisation's workforce in all aspects of life. Our approach ensures that organisations have the right support and expertise every step of the way. We offer a range of services which aim to reduce the risk of an employee being long-term absent, and can also provide access to rehabilitation specialists to support employees as they plan their return to work.
Group Critical Illness;
Nothing in life is certain, and the diagnosis of a critical illness such as cancer, a stroke or heart attack is a reality that many individuals have to face. With the right support, many people diagnosed with a serious illness are able to make a full recovery and return to work.
Group Critical Illness focuses on the financial needs of employees, helping them through their treatment and recovery. It offers a 'living benefit' to employees, who can use the lump sum provided to help towards any expense they choose, such as treatment costs, nursing care, financial commitments or changes that their illness necessitates to their lifestyle or home.
The benefit can be tailored to vary the amount of cover per employee and eligibility for the scheme. Many ‘higher risk’ occupations can be included, allowing the employer to extend cover to a wider range of employees, who may not be eligible for other benefits.
is designed to help employers to manage long term sickness absence more effectively. By providing a guaranteed income for employees who are unable to work as a result of illness or injury, an employer can help to support them financially through what can be an emotionally and financially stressful time.
When income is protected in this way, the employee's pension, National Insurance contributions and retirement plans can be maintained, despite the break in normal salary payments.
We believe that Group Income Protection is not just about paying claims - it is about supporting an organisation's workforce in all aspects of life. Our approach ensures that organisations have the right support and expertise every step of the way. We offer a range of services which aim to reduce the risk of an employee being long-term absent, and can also provide access to rehabilitation specialists to support employees as they plan their return to work.
Group Critical Illness;
Nothing in life is certain, and the diagnosis of a critical illness such as cancer, a stroke or heart attack is a reality that many individuals have to face. With the right support, many people diagnosed with a serious illness are able to make a full recovery and return to work.
Group Critical Illness focuses on the financial needs of employees, helping them through their treatment and recovery. It offers a 'living benefit' to employees, who can use the lump sum provided to help towards any expense they choose, such as treatment costs, nursing care, financial commitments or changes that their illness necessitates to their lifestyle or home.
The benefit can be tailored to vary the amount of cover per employee and eligibility for the scheme. Many ‘higher risk’ occupations can be included, allowing the employer to extend cover to a wider range of employees, who may not be eligible for other benefits.
Group life assurance;
enables employers to provide a tax-free lump sum benefit payment, and/or a longer term income, to an employee's family and dependants if they should die in service. As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, provision of group life assurance also goes some way to reassuring employees that their efforts in the workplace really count.
Product features
Group life assurance offers a multiple of salary or a fixed amount as a lump sum benefit to an employee's family and dependants should they die in service. A death in service pension offers a long term income to the employee's dependants, which can be based upon a percentage of, either, the employee’s salary, or, prospective pension. In addition to a spouse's pension, benefits may be provided for surviving children or orphans if the surviving spouse also dies.
Benefits can also be protected against inflation by including an escalation option. This means that any pension payable will increase over time at an agreed rate or in line with the Retail Prices Index.
enables employers to provide a tax-free lump sum benefit payment, and/or a longer term income, to an employee's family and dependants if they should die in service. As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, provision of group life assurance also goes some way to reassuring employees that their efforts in the workplace really count.
Product features
Group life assurance offers a multiple of salary or a fixed amount as a lump sum benefit to an employee's family and dependants should they die in service. A death in service pension offers a long term income to the employee's dependants, which can be based upon a percentage of, either, the employee’s salary, or, prospective pension. In addition to a spouse's pension, benefits may be provided for surviving children or orphans if the surviving spouse also dies.
Benefits can also be protected against inflation by including an escalation option. This means that any pension payable will increase over time at an agreed rate or in line with the Retail Prices Index.
Group Private Medical Insurance (PMI)
Group Private Medical Insurance (PMI) is a policy taken out by an employer to enable their employees to receive eligible private treatment quickly with the minimum disruption, thereby helping to reduce the cost of sickness absence. Employees are probably the most important asset a company has, so looking after their health is crucial to your business. Group PMI provides a high-value benefit and peace-of-mind to attract and retain experienced employees.
PMI is normally an allowable business expense for corporation tax purposes under current tax rules. Above all, Group PMI can help to reduce the cost of sickness absence.
Employee Benefits
Peace of mind - they will not have to wait on the NHS for eligible treatment
Employees can choose where and when they are treated to ensure their treatment fits in with home and business schedules
Own private room in most cases
Visiting times to suit them
Cover can often be extended to their family as well (either company paid or on a voluntary basis).
Group Private Medical Insurance (PMI) is a policy taken out by an employer to enable their employees to receive eligible private treatment quickly with the minimum disruption, thereby helping to reduce the cost of sickness absence. Employees are probably the most important asset a company has, so looking after their health is crucial to your business. Group PMI provides a high-value benefit and peace-of-mind to attract and retain experienced employees.
PMI is normally an allowable business expense for corporation tax purposes under current tax rules. Above all, Group PMI can help to reduce the cost of sickness absence.
Employee Benefits
Peace of mind - they will not have to wait on the NHS for eligible treatment
Employees can choose where and when they are treated to ensure their treatment fits in with home and business schedules
Own private room in most cases
Visiting times to suit them
Cover can often be extended to their family as well (either company paid or on a voluntary basis).
We can provide both on-shore and off-shore investments for the business that has funds surplus to operating requirements. This is a very complex area that requires expert handling to ensure that the business not only invests in areas and contracts that fit with it's investment attitudes, but that also allows access to the funds (if required) should they be called upon unexpectedly by the business.
Authorised and regulated by the Financial Conduct Authority no. 436140
© 2013 One Life Financial Planning Ltd, registered in England and Wales. Company registration number 5471468
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