It’s nearly 3 months since the outcome of Brexit sent shock waves around the UK and the World. Whilst we all come to terms with the decision, new opportunities often materialise from change.

I’m writing to let you know that we have published a new case study ‘Planning considerations for IT contractors‘.

This article focuses on the use of RLP as a tax efficient way of providing life cover, considers how the recent changes to dividend taxation has affected remuneration strategies for companies owning clients and highlights the opportunity for employer funded pension contributions. Research suggests this could be an expanding sector with specific support needs.

So what is the opportunity for advisers here … What happens when someone decides to move from employment to contracting? A number of opportunities could arise:

  •          Loss of Death in Service benefits from previous employer – potential RLP requirement (mitigate lifetime allowance risk).
  •         Protecting the newly formed Ltd Co – Shareholder & Key Person.
  •         Business loan protection to fund start up?
  •          Has a Directors Loan account been created? Have they borrowed against their home to fund the business? If death occurs, the director’s loan account must be repaid on demand to the estate and it’s likely the mortgage will also need repaying – how can one Life cover policy settle the DLA liability and also then repay the mortgage?
  •          Replacing lost (employer) retirement provision.
  •         Consolidating pension provision.

Could Recruitment Agencies who specialise in placing contractors in the IT sector represent a profession connection referral opportunity?

I hope this gives food for thought and can create new business opportunities.

If you want to read more useful articles, the link below takes you to our library of protection financial planning articles, which include a wide range of technical support covering IHT planning, powers of attorney, guidance on business structures and company accounts and evolving legislation.

http://www.scottishwidows.co.uk/Extranet/Literature/Category/644