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The business owner – planning for a catastrophe

Published  31 May 2023
   60 min CPD

In this webinar we'll highlight the rise in business owners and discuss some of the implications in terms of the need for financial planning.

Cashflow modelling can be a powerful tool to use within our financial planning conversations, but are there opportunities within this type of exercise that we’re underutilising or missing altogether?

In the first part of the presentation, we'll look at three questions to ask a client during a cash flow modelling exercise to get them thinking about the need for protection and how might they cope if catastrophe struck.

We'll then consider the benefits of pensions before looking at the implication of the annual allowance and the potential for the tapered annual allowance to apply to the business owner. We'll consider the limited company, the wholly and exclusively rule and how the taxation of dividends works. In terms of extracting profits, the three options – salary, dividends and pension contributions are compared.

CPD learning outcomes - 60 minutes

  • Understand the benefits of pensions to the business owner as well as the limitations
  • Be able to compare the various options a business owner has to take profits from a business
  • Have a better understanding of how to identify protection opportunities within cash flow modelling exercises
  • Be able to describe how protection should be a key consideration for business owners who are planning on using their business to fund retirement.
  • Have an awareness of how the Consumer Duty will underpin protection advice.

What's covered

  • The need for financial planning
  • Cashflow modelling
  • Importance of business protection
  • Implication of annual allowance
  • How taxation of dividends works

CPD certificate of completion

Once you've reviewed the CPD content, simply complete the short quiz below and fill out your details to receive a CPD certificate of completion.

Check your knowledge

To gain your CPD certificate answer the following questions.

1. When considering a protection solution for Business Continuity, advisers might consider
2. A Business Owner’s Exit strategy might include
3. A client with a young family, no financial protection and an outstanding mortgage balance of £250,000 could be described as having which of the following ‘attitudes to protection risk’
4. If the full amount of carry forward is available to an individual for tax year 2023/24, how much annual allowance could they potentially have?
5. If the taper applies to an individual’s annual allowance, what’s the minimum annual allowance they could have for tax year 2023/24?
6. If Tom earns £70,000 in 2023/24, what’s the maximum his employer can pay into his pension?

CPD certificate details

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