Running a business can be rewarding, tough and lonely. It requires passion, focus, commitment and clear-sightedness. For many it’s more of a lifestyle choice.

5 things an aspiring business owner needs to succeed:

1.  A clear vision of their aims and market
2.  Self-belief, ambition, drive and resilience
3.  Contracts for all shareholders and interested parties
4.  Systems to manage accounts, cash flow and credit control
5.  And above all….an ability to enjoy what they’re doing

Many start-ups overlook the importance of seeking guidance from professional advisers who can help them get their business off the ground.

A detailed business plan is essential to any request for bank finance. Reams of figures are not enough. Banks need to be certain an SME understands its market, that it genuinely needs the loan, that it supports the company’s plans for growth and that it will be repaid.

But while businesses should have a strong grasp of their financials at all times, many hard-pressed, time-poor directors need help in preparing those all-important management accounts when the need for credit arises.

Presenting a tailor-made package of information to secure new finance might be the difference between success and failure.

1. Stamp duty, registration duty and VAT should always be factored in
2. Fluctuating exchange rates on foreign transaction may inflate the amount of tax you pay
3. Any profits made from letting a foreign property commercially will be liable to tax
4. Owning a Furnished Holiday Let in the UK or EU qualifies investors for numerous tax breaks
5. Tax relief is only available in countries which have a double taxation treaty with the UK

Seeking professional advice on buying property abroad means tax remains firmly in the shade.

After deducting allowable expenses, investors must pay income tax on any rental profits. A self-assessment tax return is compulsory where the annual net profit exceeds £2,500, but many expenses are claimable.

Any growth in the value of a property when it is sold could mean a tax bill of at least 18%. Tax relief is available but structuring the ownership of the property in an efficient way is vital.

Inheritance Tax (IHT) at 40% is due on all assets (where their total value exceeds £325,000). But passing on the property to a spouse on death to avoid this can compound the IHT problem.

Protect your investment by reviewing existing arrangements to ensure you have a tax efficient plan for the future.

30s and 40s

People often draft a will and take out life assurance when they start accumulating wealth. On exceeding the nil rate band of £325,000, many begin IHT planning.

50s

People often start more complex IHT planning in their 50s by placing their life assurance, pension death benefit and/or business assets into IHT-exempt pilot trusts.

60s and beyond

In retirement, many consider ‘lifetime gifting out of income’ by setting up stakeholder pensions and trusts for grandchildren and placing excess income into Discounted Gift Trusts.

Whatever your age, there are ways to mitigate IHT exposure.

• Bureaucracy and red tape
• Financial controls
• Guidance on public benefit
• Fundraising and self-regulation
• The benefits of an organisation holding charitable status

We’re keen to show how our understanding of the needs of business owners and wealthy individuals can really benefit you.

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