"There is no point in investing in any financial products before you are absolutely clear what you are aiming to achieve."
Finance- Personal and Corporate
Organising your corporate and personal finances is a key part of running a successful interim management business. This need for financial efficiency cannot be understated and is even more pronounced following the recent draconian shift to a new higher rate UK taxation.
How do you ensure that you have sufficient knowledge and understanding to minimise personal and corporate tax liabilities? What is a legitimate business trading expense and, exactly what does remuneration mean? Is it possible to ‘shift income’ to my spouse or partner to save national insurance contributions (both employer’s and employee’s)? What about these Offshore Loan schemes, do they work?
In corporate life you probably received a host of employee benefits including pensions, private health and income protection. You accepted these automatically as part of your overall remuneration package and they gave you great value and comfort.
What do you do now that they have been removed? How important were they and how important are they now? Who should pay for these benefits and will you get taxed on them?
John Breen of City Capital Analysis who specialises in helping Interim Managers clarify and meet their financial objectives says.
“There is no point in investing in any financial products before you are absolutely clear what you are aiming to achieve.
Whilst tax efficiently extracting profit from their business is a key goal for all interim managers, what they want to do with that profit is highly individual”.
John sees each interim manager as having very specific and individual needs requiring a bespoke solution.
Such planning is not easy and does demand a fair degree of understanding of regulatory constraints so it is worth contacting a specialist if you do not have this knowledge.
“The benefits of tax planning can be enormous for interim managers” says John who quotes a recent case where one of his interim managers saved over 50% of his tax bill; a substantial amount in anybody’s book.