Directors & Shareholders Benefits
Protect your business, reward their efforts.
Directors are key to growing a business
So if something serious happens to your senior people, it can have a huge impact on your operation.
Directors benefits are usually used to protect the directors and shareholders of a business.
Needless to say it makes sense to protect yourself against disruption should your directors fall ill or suffer a serious life event. Not to mention reward them for the work they do. You’ll also want to be as tax efficient as possible when it comes to putting these benefits in place.
We’ll take an in-depth look at the level of protection you need. We’ll then guide you through the entire process. In the meantime, here are two great benefits options you may want to look at.
SSAS
Designed for business directors, the Small Self-Administered Scheme (SSAS) operates as an occupational pension scheme established under trust by the sponsoring employer. Each member holds a share in the fund, determined by contributions, transfers, investment growth, and relevant payments from the fund. The value of their share at the time of withdrawal determines the amount a member receives.
Additionally, the SSAS can serve as a loan to the sponsoring employer or be utilised for purchasing, offering valuable cash flow to the business and generating a regular tax-free income. Holding property within the SSAS enables tax relief on contributions for the purchase.
SIPP
Consider adding the Self-Invested Personal Pension (SIPP) to your benefits package, a scheme that consolidates members’ pension assets into a single fund for investment. Each member maintains an individual account within the group SIPP, registered with HMRC, with their share of the fund, investment returns, and costs determined by their contributions. Members can make additional contributions, transfer payments, and withdraw funds as a tax-free lump sum or pension, with their share recalculated at each transaction.
Opting for this scheme is advantageous for those seeking asset pooling benefits, but it may not be the ideal choice if such advantages are not pertinent to your business.
Protection & perks, all in one package
If you’d like to put a plan in place for your directors, that protects and forms an attractive incentive for your senior people, we can help.
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