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May 2025 | Phonebox Magazine 9A key part of running a successful business is not just making money but keeping it %u2013 and that%u2019s where strategic fi nancial planning comes in. By working with both a knowledgeable accountant and an experienced financial adviser, you help ensure you are operating as tax-e%u008d ciently as possible while planning for your future.The Power of Pensions for Business OwnersOne of the most e%u0090 ective ways to reduce your corporation tax bill while securing your fi nancial future is to invest in a pension through your company. Unlike taking profits as salary or dividends (which attract Income Tax and Dividend Tax, respectively), employer pension contributions are considered an allowable business expense, reducing your corporation tax liability.For example, if your business is generating strong profi ts, rather than withdrawing all of it as dividends and paying tax, you could direct a portion into a pension. This approach allows you to build a robust retirement fund while benefi ting from tax relief now. Plus, given the recent and upcoming changes to pension legislation, including those due in April 2027 regarding inheritance tax treatment, pensions remain a highly attractive fi nancial planning tool.Maximising Allowances and Structuring E%u0004 cientlyBeyond pensions, there are various allowances and tax-efficient strategies available to business owners and contractors. These include:%u2022 Maximising Dividend Allowances %u2013 Structuring dividend withdrawals carefully to make full use of lower tax bands.%u2022 Using ISAs %u2013 Tax-e%u008d cient investments that allow your money to grow efficiently alongside your pension.%u2022 Inheritance Tax Planning Strategies %u2013 Planning ahead for tax-efficient wealth transfer and estate planning.%u2022 Private Medical Cover & Relevant Life Policies %u2013 Taking advantage of tax-e%u008d cient business expenses to fund protection benefi ts.Can Your Accountant Provide All the Advice You Need?Your accountant plays a crucial role in managing your tax affairs and ensuring compliance. However, their focus is often on fi nancial reporting, tax returns, and structuring your business e%u008d ciently from an accounting perspective.A fi nancial adviser, on the other hand, looks at the bigger picture %u2013 including how your business income aligns with your long-term personal fi nancial goals. They can help you:%u2022 Plan for your retirement tax-e%u008d ciently%u2022 Ensure you are making the most of your investment allowances%u2022 Strategically withdraw funds from your business in the most tax-e%u008d cient manner%u2022 Protect your wealth and plan for the next generationWho Would Benefi t from Financial Advice?If you are a business owner, contractor, or selfemployed professional with surplus profi ts, you could benefi t greatly from fi nancial advice. Some key questions to consider:%u2022 Are you currently maximising all tax-e%u008d cient allowances available to you?%u2022 Do you have a plan in place to ensure fi nancial security in retirement?%u2022 Are you making informed decisions about how best to extract and invest your profi ts?%u2022 Do you have protection policies in place to safeguard yourself, your family, and your business?By working closely with a fi nancial adviser, alongside your accountant, you help ensure you are making smart, informed decisions to keep more of your wealth while planning for a fi nancially secure future.If you%u2019d like to discuss how we can help you optimise your fi nances, get in touch for a noobligation conversation. Let%u2019s make sure you%u2019re keeping more of what you earn and making your money work for you!The value of an investment with St. James%u2019s Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount you invested. The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances.Advertising FeatureKeeping More of Your Hard-Earned Money: Tax-E%u0009 cient Financial Planning for Small Business Owners and ContractorsIf you run a profi table small business, operate as a contractor, or work outside IR35, you likely enjoy the fl exibility and fi nancial rewards of your setup. But with increasing taxation and ever-changing regulations, are you making the most of the allowances and strategies available to keep more of your hard-earned money?www.stefaniepricewealth.co.uk%u2022 01234 241 441info.spwealth@sjpp.co.ukwww.stefaniepricewealth.co.uk SJP APPROVED 28/03/2025Stefanie Price Wealth Planning is an Appointed Representative of and represents only St. James%u2019s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group%u2019s wealth management products and services, more details of which are set out on the Group%u2019s website www.sjp.co.uk/products. fi e %u2018St. James%u2019s Place Partnership%u2019 and the titles %u2018Partner%u2019 and %u2018Partner Practice%u2019 are marketing terms used to describe St. James%u2019s Place representatives.