Most small to medium sized firms depend on key persons to run the business but they are often unprepared to face the situation if something happens to those key individuals.
The consequences of this oversight may result that the remaining business just cannot survive with possibly disastrous consequences for the firm and its owners and those employed.
Often little thought is given to future exit strategies or succession planning and this can result in paying more tax than necessary.
Example of key areas of advice to consider are:
* Key person cover against death or critical illness – many companies insure the company cars but not the sales people driving them and bringing in business to the company
* Shareholder or Partnership protection – Directors and Partners should look to protect each other against illness or death otherwise the spouse of a deceased or critically ill Director/Partner could inherit that share of the business they know little about. This could potentially ruin the business and all your hard work
* The implications of employer work pensions under Auto Enrolment legislation between 2012 and 2017 brings on complex responsibility for employers and early discussions about this is vital, for if one fails to meet the requirements of this legislation then fixed and escalating penalties are applicable from the pensions regulator.
