Reduce Corporation Tax. Maintain business cash flow
Successful business owners know the importance of maintain flexible cash flow in order to continue to grow, but we are all also aware that the more successful their business is, the higher the Corporation Tax liability will be…
Of course, business owners can reduce Corporation Tax by simply moving it from the company accounts — you could make additional pension contributions, make charitable donations, or spend profits on training or staff rewards (among other options) — but how can you then address the cashflow concern and avoid tying your funds up with no control over them? This is where TLPI can help.
Over 1,000 tax reliefs, benefits, and allowances are available to business owners. By efficiently identifying those suitable and managing allowed business expenses, you can make the most of the reliefs afforded to business owners.
One of the unique facilities of the SSAS pension is the SSAS Loanback. this allows you to loan up to 50% of your pension to your trading company, for any valid business purpose. You can set your own interest rate on the loan, as long as it is at least 1% above the high-street base rate. The trick here is to set a higher interest rate, meaning that you payments from the business are increased, further reducing the company balance sheet whilst increasing your pension pot at the same time. In addition, this is the repayment of a business loan and is thus classed as a business expense. The required loan period can be up to five years after which this ‘rinse and repeat’ cycle can be repeated using an increased pot.
Investing in property
Did you know that SSAS pensions, unlike traditional pensions, can invest in property as an option (as well as many other asset classes)?
This means, for example, your SSAS could purchase your business premises. Your company would then pay rent to your SSAS, which is considered an allowed business expense, therefore benefitting from further tax relief all whilst lowering your year end balance sheet. Meanwhile, your pension pot continues to grow, giving you a bigger pot from which to make further investments. As an additional benefit, you become your own landlord, reducing expenses and paperwork.
Facilitate growth, protect from your estate, maintain accessibility
All of the previous points help to facilitate growth across both your company and your pension, which in turn, opens further avenues for investing and growing your wealth. But where there is a big sum of cash, there are usually hefty taxes liable.
However, by keeping your assets within the SSAS it ensures they are ring-fences and kept outside your estate, meaning they are safe from Inheritance Tax should the worst happen. By coupling the Small Self-Administered Scheme with the Family Investment Company, you are creating a financial triangle that gives you extreme flexibility over your total financial situation. By elevating your tax plan in this way, funds can be moved between the company, the FIC, and the SSAS, providing the greatest tax savings and the most profitable investments.
Questions? Speak to TLPI
Tax planning can be cost-effective, illuminating, and profitable. However, it is essential to understand the complexities that surround tax planning strategies to ensure you abide by HMRC rules. By employing the correct support, the effectiveness of your tax plan can be elevated with simple steps, all within UK and HMRC regulations.
We strongly recommend youbook a free consultation with one of our experienced constants, who, in the first instance, will talk through your specific circumstances, aims, and goals and answer any questions you may have. This will allow you to decide whether our tax planning products are right for your situation.
Our clients rate us as 5 star, here’s what they say:
Based on 67 reviews
We have recently used this excellent company to set up a Family Investment Company. The complete process was seamless with our personal contact Jordan Sharpe explaining all the steps along the way in a very confident and professional way. They really do deserve this 5 star review.
Tlp have been fantastic with there advice and help in setting up my retirement plans , putting structures into place to help with future generational hand over of assets, great advice from Jordan Sharpe, easy to deal with and always on hand for help when needed, well done all, 👏 ✔️
Trustworthy Financial Advice with an Eye on the Future. I recently sought financial advice, and trust was my top priority. TLP not only met my expectations but exceeded them. Although their product didn't suit my current needs, their dedication to providing comprehensive information and support left me confident in utilising their services in the future. TLP's commitment to customer satisfaction was evident from the moment I approached them. They patiently and thoroughly discussed all available options with me, ensuring I understood the pros and cons of each. Despite not making an immediate sale, they generously shared their time and expertise, demonstrating a genuine interest in helping me make the right decisions. What impressed me the most about TLP was their transparent and honest approach. They didn't try to push any product on me that wouldn't serve my current financial situation. Instead, they focused on empowering me with the knowledge I needed to make informed choices. Their willingness to prioritise my needs over immediate profits spoke volumes about their integrity. I left my interaction with TLP feeling informed, confident, and assured that when the time is right, they will be my go-to financial advisory service. The trust they have established with me through their professionalism, dedication, and genuine care for my financial well-being is unparalleled. I have no hesitation in recommending TLP to anyone seeking trustworthy financial advice.
I was looking at setting up a Family Investment Company, during which I’d paid more than a few hundred pounds for a couple of Consultations. After which I’d received some rather expensive quotes for setting it up, as well as getting lots of complexed information about the process.
Then I eventually stumbled across TLP while doing some related research. I was pleasantly surprised and more than pleased that they offered a No cost consultation. During which Lewis Jones, was able to simplify all the information and subsequently provide a much more realistic quote for the process. Not to mention the first year’s company accounting services that came for free and the ongoing advice from Lewis. Which has not only been financially beneficial, but as proved to be a great source of knowledge and education, responding to all my questions promptly. With my background not being in the financial and investment sector, his clear explanations put in a context that I was able to understand, has been invaluable.
Great support all the way through the process very professional good knowledge and friendly service. I would highly recommend
From the start of the transfer to the end TLP have been always available to me, they have kept me informed throughout the process and offered help and guidance when required. Excellent service that is highly recommended
Now fully set up with a Landlords pension and very pleased with the overall service. Only delays were with AVIVA not playing ball but now all done and set to earn significantly more than with AVIVA. Jordan Sharpe was knowledgeable and guided me through the whole process with a professional and friendly approach. Morwena (assistant) was again very friendly and together made the process a simple one. Looking forward to a better retirement (eventually) thanks to TLP.
Want your questions answered about SSAS by our expert Corporate Investment consultants?
Book your free, 15 minute no obligation call to find out more!