The Financial Plan models what you take from your company, what the business could be worth, and your pensions, property and stop date together, every year to age 100 with UK tax applied. Buzz began as an accountancy practice for business owners, and Buzz Accounting clients’ business figures are already with us.
Dave, 54, owns a plumbing and heating firm with four staff. He takes £12,570 in salary and about £40,000 in dividends, and assumed a sale would raise £150,000. The business had never been valued. From the worked example in a Financial Plan in full.
Their money runs out at 88. In two thousand reshuffled runs it lasted in 41%.
Their money lasts past 100, with roughly £280,000 left.
Dave chose to stop at 62 after seeing what one extra year did to the numbers, and spent six months making the business less dependent on him.
What you take each year, taxed at the personal rates that apply, including dividend tax and the Scottish bands where they apply.
Modelled at zero and at your figure, with the year you expect the money to arrive.
Money paid over three or five years out of future profits is modelled as staged payments that may not all arrive.
The car, travel and other costs that move to you, or stop, when you stop work.
The tax on your projected estate. Above £2m the residence nil-rate band tapers, and business property relief does not reduce the estate for that test, which can cost £140,000 of allowance.
Your accountant works out the tax on taking money out of the company, the corporation tax position, and what a sale structure would cost in tax. Those figures go into the plan.
The plan shows what each route does to your retirement: taking more in dividends now, paying more into a pension through the company, or keeping the money in the business. Which pension to pay into is a regulated recommendation. For that, we say so and can introduce you to Equity & General, authorised and regulated by the FCA (No. 474163). The introduction is optional. If you become their client, E&G pay Buzz a commission, and we tell you about it before the introduction.
The mechanics of a sale, the valuation, the deal and the warranties, sit with your accountant and solicitor. What happens to my business when I stop covers the four realistic endings and the three years it takes to make a business saleable.
An hour with a planner on whether the Financial Plan suits your position. The plan costs £1,500, paid once, and covers you and your partner.
No. The Financial Plan is open to anyone in the UK. If you are a Buzz Accounting client, your business figures are already with us, which shortens the fact find. If your accounts are done elsewhere, we work from what you take from the company each year and the figure you have in mind for the business, and your own accountant can supply the tax on extraction. The plan is written so that an accountant or adviser can follow your position quickly, and you can share it with either.
That has tax consequences for both you and the company, and once it becomes a question of which pension, which fund and how much, it is regulated advice that Buzz Accounting Ltd is not authorised to give. The plan models both routes side by side in your own numbers, so you see what each does to the age your money runs out and to how much of the plan depends on a sale. Your accountant works out what each route costs the company in tax. You then compare the two routes in pounds.
The plan already shows that case, because every plan models the business at zero. If the projection holds up at zero, you can keep the business as it is and treat any sale as a bonus. If it does not, you find out while there is time to fund the retirement another way, or to make the business easier to sell, which takes two to three years. Winding a company down and taking out what is there is modelled too, because it sets the floor under every other ending.
No. Financial planning describes your position, models your future and sets out the decisions. It is not regulated financial advice, and the plan contains no product recommendations. For example, we show what stopping at 60 does to your projection, and we do not tell you which pension or fund to put money into. Where a decision needs a personal recommendation, we say so and can introduce you to Equity & General (FCA 474163). The introduction is optional, and we tell you about E&G’s commission to Buzz before it.
£1,500 for the Financial Plan, paid once. A couple pays the same. If you want the plan kept up to date, ongoing planning is £49 a month: a check-in every quarter, the projection re-run each year with a review session, and questions answered between reviews, such as an offer for the business. For owners within ten years of stopping, or with several changes under way, we suggest the plan with ongoing planning. You can start it later, and cancel any time.
An hour with a planner on whether the Financial Plan suits your position.
A written plan: every year to age 100 with UK tax applied, each risk measured in years, and your next ninety days.