Business Planning

Most small to medium sized firms are unprepared in some areas of financial planning. The consequences
of this oversight may simply result in paying more tax than necessary, or it can be much more serious in that events which can and should be insured against are left uncovered, with possibly disastrous consequences for the firm and its owners.

The main areas for review and action are as follows:-


The success, particularly of a small business, can be affected by the loss of key staff.

  • If a key member of staff had died (or became seriously ill) yesterday, what would be the financial impact on turnover or profitability?
  • How long would it take to find a suitable replacement?
  • How would the business fare in the interim period?

Profits could fall and creditworthiness could be reduced, so a business has a choice as to whether to accept that risk or pass on the risk to an insurer. Key Person Insurance doesn't replace the loss of a key person, but it can help to ease the financial burden of losing that person.


As a company director, shareholder or partner your business is often one of your major assets.  It is therefore important to safeguard the ownership of the company in the event of the death of either you or one of your business partners.

  • Would the remaining partners or shareholders have sufficient funds to buy your share in the business?
  • Would your dependants want to sell your share or become involved in the business?
  • If you or another owner of the business became critically ill, could somebody else purchase your share so that you could give up work

It is possible to ensure that the future of your business is taken care of by implementing either a partnership protection plan or a shareholder protection (depending on your business status).


On the assumption that the business is ultimately to be sold (as opposed to you remaining as a director, taking profits), there are a number of factors to consider.

  • How will you value the business?
  • Do you intend to retain any shareholding? If so, how much?
  • What tax will be payable and can it be mitigated in any way?
  • Where a shareholder of a family business dies, to whom will the shares pass?
  • What consideration has been given to any Inheritance Tax liability?


It is possible to reduce your corporation tax, income tax and even national insurance liability through the careful use of pensions.The actual detail as to what can be done for your own company and objectives depends on many factors, including the ages of the controlling directors, their individual aims, their existing pension arrangements and the resources available to build the fund. This requires careful planning but can be a highly efficient tax planning strategy.

We have the technical expertise, and access to the whole of the market so can confidently recommend a tailored solution to your every business need.

Please click on our ‘A Guide To Business Protection’ for more information.