Running a company is all-consuming, and it's easy to let your own finances slide down the priority list. But the decisions you make as a director have a huge impact on your personal wealth — and without a proper plan, you're probably leaving money on the table.
Your Situation Is More Complex Than Most
As a director, you're not a straightforward PAYE employee. Salary, dividends, shares — that complexity is a genuine advantage, but only if someone's helping you make the most of it.
A financial plan joins the dots between your business finances and your personal goals. What do you actually need to live the life you want? When do you want to step back? What happens if something unexpected comes along? A lot of directors from previous experience often focus on what they're best at, but this can neglect futureproofing themselves.
Tax Efficiency: The Often-Missed Win
The right mix of salary, dividends, and pension contributions can make a significant difference to what you actually keep. Company pension contributions alone are a powerful tool — they're a deductible business expense, they reduce your corporation tax bill, and the money grows in a tax-advantaged environment. Yet plenty of directors aren't using them to their full potential.
A good financial planner can help you structure your remuneration in a way that works harder for you — legally and efficiently.
Protection: The Bit Nobody Wants to Think About
If you stopped working tomorrow, what would happen to your income? Your family? The business?
Directors often assume they're covered because they own the company. But ownership doesn't pay the mortgage when you can't work. Income protection, life cover, or relevant life policies (which can be funded through the company) can mean the difference between a difficult chapter and a financial catastrophe. Good planning means these conversations happen before they're needed.
Planning Your Exit Before You're Ready to Leave
Whether you plan to sell, pass on the business, or simply wind down one day, the decisions you make years in advance determine how much you walk away with. Business Relief, Business Asset Disposal Relief, holding structures, pension funding — none of these can be bolted on at the last minute. The directors who get the best outcomes at exit are almost always the ones who started planning early.
Where Do You Start?
With a conversation. A good financial planner will want to understand your business, your goals, and your personal situation before making any recommendations. There's no one-size-fits-all solution — but there's almost always a better way of doing things than the default.
Skerritt Financial Planning provides personalised financial advice for individuals, business owners and company directors. Get in touch to arrange an initial conversation.
I’m a Sussex based Chartered Financial Planner who likes to keep things simple, relaxed, and genuinely helpful. No stiff suits, no confusing jargon, just relaxed conversations about what you want…
Post articles and opinions on Surrey Professionals
to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.
