patent box

Patent Box… videos and links

I did a full post on Patent Box a while back… but I thought I’d throw in a couple of videos we did on it a few years ago…

This first video has poor sound quality, clunky jump-cuts and is a no frills interview with a cracking Patent Attorney… Tom Hutchinson of HutchinsonIP

This second video is a bit slicker with a few different people talking about Patent Box

And here is a site that is great for keeping up to date with any changes to these sort of tax reliefs

So… over to you

 

 

wealth management

A Wild Way to look at Wealth Management

Owners of businesses are special in a ton of ways… and they need advisors who recognise that reality… but when it comes to Wealth Management it just doesn’t happen…

Too many wealth/financial planning guys see you as walking pension pots…  maybe they’ll sort you Key Person Cover, and maybe encourage you to get a shareholder agreement in place (with attached Insurance policies)…

But they leave waaaaaay too many gaps for me to be happy with the service you guys are getting…

So here’s the Wild way to look at Wealth Management…

Protection first… and that means a form of Living Will for your company…

A Shareholder Agreement (with any necessary Insurance policies)… Key Person Cover (must contain some Critical Illness)… and an LPA (Lasting Power of Attorney) 

Mind the Gap

Admit it… you don’t have all of these… ? … and that means you are leaving the wealth you’re creating and your business unprotected

You’re not alone… I’ve recently visited 45 companies in 3 months as part of a passion project (see here for why) and only two were properly covered

Why? Because the quality of Wealth Management & Financial advice owners of businesses receive at this level is frankly piss poor…

Too often it fails to take into account the extra duties & responsibilities of owning a company… and too often it leaves major gaps… like an LPA

You are 7 times more likely to become incapacitated than die… so why hasn’t your finance advisor rammed an LPA down your throat? Why isn’t incapacity provided for in your Shareholder Agreement? and why are your cover polices more about death than incapacity?

And there’s more

So… having Protected your wealth what’s the Wild way of looking at Wealth tied up in the business?

Making the most within the business

There are some of the cool tools available to optimise interest on any cash balances in your business?

I know of one that can turn a 0% deposit account into one paying 2%… by giving you a portal to easily move money between different deposit accounts from different banks…

(And if safety first /protection is a priority this tool has 30 banks on it… meaning you can spread your money and get 30 lots of £85k deposit protection should the banks get in trouble again)

And for those of you running a consistent cash surplus… there are safe Corporate Bond products that keep the cash in the business but pay out 5% plus (and don’t screw with your Entrepreneurs Relief if you sell the business)

Getting wealth out of the business

I’m not talking a sale here… I’m talking Converting Company Assets in Personal Assets…

… and doing it in a non-aggressive “won’t come back & bite me” way

Here’s a simple way to look at the 4 Pillars of Tax Efficient Investing

ISA : no tax relief going in… tax free coming out

Pensions : tax relief going in… taxable coming out

EIS : tax relief going in… tax free coming out

VCT : tax relief going in… tax free coming out

 

BOTTOM LINE

… if your advisor hasn’t covered anything mentioned in this post… you are GS10K… you need and deserve better

 

 

Estimating Turnover

Your Competitor’s Turnover… how to calculate it

Filing abbreviated accounts at Companies House means people don’t know what your Turnover is… or do they?

Old accounting lags like me and credit agencies have their own ways to estimate a company’s Turnover from just a Balance Sheet… here are a few… and they can be surprisingly accurate

Estimating Turnover from Debtor Days

Debtor Days is an accounting ratio that can be used to figure out a competitor’s Turnover…

Work out your own Debtor Days… and apply it to your competitor’s Debtors… et voila you have a good estimate of their Turnover if their business is similar to yours

Apply your industry standard* Debtor Days to their Debtors and you’ll get yet another estimate of their Turnover

Take care though… dig around in the notes to the accounts and try to use only Trade Debtors in the calculations

And for any of you GS10k guys I have a spreadsheet that does it for you I’ll send you if you drop me an email…

Times by Six

One of the world’s largest credit agencies simply takes a company’s Debtors and multiplies that figure by 6 to estimate Turnover…

The logic is that globally Debtors take roughly 60 days or 2 months to pay… and there are 6 lots of 2 months in a year

mmmm… sophisticated or what?

And the Rest

Lots of Credit Agencies have a go at estimating a company’s Turnover using their own weird ways… and some even let you know what that estimate is (eg FAME database let you turn on a tab to show a company’s estimated Turnover)

The Takeaway

Just because you don’t file your Turnover doesn’t mean people can’t and aren’t guessing what it is… and they’ll typically underestimate… because they’re cautious finance guys…

 

*industry standard Debtor Days can often be found in a Credit Agency report

Lasting Power of Attorney

LPA Lasting Power of Attorney… what it is & why you NEED one

Protecting you guys from yourselves has become a mission of mine since a client’s world fell apart when her husband had a disabling heart attack…

Terrible for him, his family and the family business… incapacity means legally decisions cannot be made… even by his wife, joint shareholder and driver of the business… without ridiculous, repeated, time-consuming, & stupidly expensive trips to court to get permission…

Obviously it’s not going to happen to you…

But just in case…

Please sort an LPA… a Lasting Power of Attorney… appoint someone to make decisions should you be incapacitated… if only for the sake of the smooth running of your business…

There’s more below… but for GS10K people if you need help with this stuff please get in touch … I really do mean it… happy to pop out and chat this sort of thing through… completely 100% foc

LPA… Lasting Power of Attorney…  the Details

A lasting Power of Attorney is a legal document with which you appoint people to represent you during a period of incapacity

You can appoint multiple Attorneys… for health, and for financial aspects of your life… and they don’t have to be a lawyer…

But the Power of Attorney document must be done properly and filed with the Office of the Public Guardian

You can sort it all yourself online… or pick up the paperwork from places like WH Smith…

… but you own and run a company so you’ve got greater duties and responsibilities than most folk… so I’d honestly recommend spending the few hundred quid you need to have it done right by a lawyer to suit your peculiar circumstances

Here’s the Government website

And here’s another post about protecting your wealth