New Business Directions’ Post

Hiring your children within your business isn’t just about fostering responsibility—it can also be a strategic financial decision. Paying them a reasonable wage for their work not only provides them with valuable work experience but also allows you to deduct these wages as a business expense, reducing your taxable income. This approach turns allowances into investments in their future and your business's #FinancialHealth. Learn more about all the benefits of bringing your children into your #FamilyBusiness here: https://loom.ly/U-a-1go

Curious about how a six-figure salary can transform your financial future? 💼💰 Discover Todd’s journey from earning $50,000 to building a net worth of over $1 million. 🚀📈 Read the full article to learn how prioritizing saving and investing helped Todd achieve his financial goals and why he plans to keep working towards building generational wealth. 🌟💡

Everything you need to know as a small business owner ahead of the upcoming budget The first Labour Budget since 2010 is coming, and changes are likely. It could positively or negatively affect your service business. Here’s what you should keep in mind: 1. Capital Gains Tax (CGT) Expected changes: An increase in CGT rates or cuts to the tax-free allowance, which could impact any business assets you plan to sell. What to Do: → Consider selling assets with accumulated gains to avoid higher taxes. → If you’re in a partnership, think about transferring shares to your spouse to maximize allowances. 2. Inheritance Tax (IHT) Expected changes: Possible removal or reduction of relief on business assets and the addition of pensions to taxable estates. What to Do: → Use any available allowances now, especially the "surplus income" exemption. → If you’re planning to pass down a family business, consider transitions before any changes take effect. 3. Pensions and Employer Contributions Expected changes: Possible tax relief reductions or inclusion of employer pension contributions under National Insurance (NI). What to Do: → Max out your pension contributions now, as tax relief rules could tighten. → Keep an eye on any new NI policies that could raise business costs, and plan to adjust contributions if needed. 4. Employer National Insurance Contributions Expected changes: Possible rise in employer NI or inclusion of pension contributions. What to Do: → Budget for a potential increase in NI costs and reassess staff plans. → Explore alternative benefits for employees to balance potential NI hikes. 5. Employment Law & Wage Adjustments Expected changes: The Employment Rights Bill may bring new employee protections and a potential minimum wage increase. What to Do: → If your workforce is mostly entry-level, calculate how a wage increase could impact your bottom line. → Review workforce planning and consider part-time or flexible staffing options to manage costs efficiently. Change is certain! Good or bad, time will tell. 😊 P.S. Consult your accountant or financial advisor before making any decisions.

With the next budget imminent, it will be interesting to see how the Mansion House reforms will be developed and expanded upon by the government. It is welcome to see pension capital being unlocked for the purposes of investment in unlisted companies, which should hopefully assist with early stage #growth. Pleasure to be quoted in https://lnkd.in/e4h8b7cd on the topic, and I'll be awaiting any announcement on the subject! #ip #startupbusiness

🌟 Financial Strategy for Business Owners: Employing Your Child and Funding a Roth IRA 🌟 As a financial advisor, I often work with business owners looking for creative ways to manage their finances and provide for their families. One strategy that many overlook is the opportunity to employ your child, allowing you to contribute to a Roth IRA for them, regardless of their age! Here’s how it works: Employ Your Child: If you have a legitimate business, you can hire your child to perform age-appropriate tasks. This can be anything from administrative work to helping with social media, to cleaning the office space. Wages Must Be Reasonable: Ensure that the wages you pay them are in line with the work they’re doing. The IRS allows you to deduct these wages as a business expense. Contribute to a Roth IRA: According to IRS guidelines, as long as your child has earned income, you can contribute to a Roth IRA for them, even if they’re under 18. The contribution limit for 2024 is $6,500 (or the amount of their earned income, whichever is less). Tax-Free Growth: The funds in a Roth IRA grow tax-free, and qualified withdrawals in retirement are also tax-free. This can be an excellent way to start your child’s investment journey early! Why This Matters: Financial Literacy: Teaching your child about money management and investing from a young age can set them up for long-term financial success. Tax Advantages: This strategy not only benefits your child but can also provide tax deductions for your business. Consider this approach as a way to invest in your child’s future while also leveraging potential tax benefits for your business. If you have questions about how to implement this strategy, feel free to reach out! #FinancialAdvisor #BusinessOwners #RothIRA #FamilyWealth #TaxStrategies #FinancialLiteracy

Maximize Tax Savings by Putting Your Spouse on Payroll 💼🤝 Small business owners, listen up! Did you know that employing your spouse can be a strategic move for both your business and your family's finances? By paying your spouse a reasonable salary for legitimate work, you can unlock a range of tax benefits: Increased Deductions: Deduct your spouse's wages as a business expense, lowering your taxable income. Expanded Expenses: Gain greater flexibility to deduct expenses like meals, travel, mileage, and cell phones when they're used for business purposes by your spouse. Retirement Savings Boost: Increase contributions to retirement plans, providing a valuable financial boost for your family's future. But remember: Legitimate Work: Ensure your spouse is performing real work for your business, with a clear job description and responsibilities. Reasonable Compensation: Pay a fair wage that aligns with the market rate for the work your spouse performs. Documentation: Keep meticulous records of your spouse's employment, including a written contract, time sheets, and proof of payment. Curious to learn more about how to structure your spouse's employment and maximize tax savings? Consult with your accountant or tax professional today. #smallbusiness #taxtips #spouseonpayroll #taxdeductions #familybusiness #financialplanning

Maximize Tax Savings by Putting Your Spouse on Payroll 💼🤝 Small business owners, listen up! Did you know that employing your spouse can be a strategic move for both your business and your family's finances? By paying your spouse a reasonable salary for legitimate work, you can unlock a range of tax benefits: Increased Deductions: Deduct your spouse's wages as a business expense, lowering your taxable income. Expanded Expenses: Gain greater flexibility to deduct expenses like meals, travel, mileage, and cell phones when they're used for business purposes by your spouse. Retirement Savings Boost: Increase contributions to retirement plans, providing a valuable financial boost for your family's future. But remember: Legitimate Work: Ensure your spouse is performing real work for your business, with a clear job description and responsibilities. Reasonable Compensation: Pay a fair wage that aligns with the market rate for the work your spouse performs. Documentation: Keep meticulous records of your spouse's employment, including a written contract, time sheets, and proof of payment. Curious to learn more about how to structure your spouse's employment and maximize tax savings? Consult with your accountant or tax professional today. #smallbusiness #taxtips #spouseonpayroll #taxdeductions #familybusiness #financialplanning

With family finances still stretched, you need every investment to work as hard as possible. Reviewing your mix of Cash and Stocks and Shares ISAs ahead of tax year-end makes sense for your short-and long-term plans. Investing in a mix of Cash and Stocks and Shares ISAs may give your money the best chance for greater growth. We can help you rebalance your cash savings and stocks and shares investments, improving your family’s financial wellbeing. https://lnkd.in/eQd_bgxM #livelife #lifestyle #freedom

🌱 Small business owners, consider integrating a Roth IRA into your children's compensation for potential tax benefits and a secure financial future. It's a strategic move with long-term advantages for both your family and your business. #FinancialStrategy #RothIRA https://lnkd.in/dhnSMSj5

Women tend to accumulate less for retirement for a host of reasons, plus they live longer. That means they have less financial stability in their later years. What proactive steps should they take to counter this? Check out this article - https://buff.ly/4fheqXm The key is to start by taking control of your daily finances. Tracking your income and expenses, creating a budget, and managing debt will help put you on the right path. Investments are also key. #moneymanagement #budgeting #financialliteracy #financialplanning