Succession and forward planning are a vital aspect of your long term strategy.
Employers are obliged to follow certain procedures when an employee becomes redundant. The Redundancy Payments Acts 1967–2014 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer. Not all employees are entitled to this statutory redundancy payment.
Employees are entitled to a minimum of 2 weeks' written notice of redundancy. This notice period goes up depending on the period of service.
The statutory redundancy payment is a lump-sum payment based on the pay of the employee (up to a maximum limit of €600 and based on normal weekly pay) and is tax free.
You may find pension planning confusing and the return on your investment difficult to understand. We can point you in the right direction for advice.
When you stop working, you will need to replace your wage or salary with a retirement pension. You will receive the State Pension. You will find it difficult to get by on that level of pension when you retire.
You need a pension plan. A pension plan enjoys attractive tax saving breaks.
Your retirement contributions are invested by the pension provider/insurance company in a range of investment funds. The investment funds selected by the insurance company aim to increase the value of your money by achieving a good return and build up your ‘pot of money’ for retirement years. The value of your fund can go up or down.
We can put you in touch with someone who can advise you on setting up a suitable pension plan for you.
If you already have a pension plan? Do you know the return you are getting on your pension fund?
If you plan to stop working in the next 5-10 years and you have a pension/retirement plan and you are a bit concerned about what type of pension you will receive from your retirement fund. Why not seek our advice on how you may get a better return on your pension contributions.
You may find the terms Pension Annuity, Approved Retirement Fund (ARF) and an Approved Minimum Retirement Fund (AMRF) confusing.
We can also advise you about the number of PRSI contributions you have made towards the Contributory Old Age Pension (COAP). Will you be eligible for a full state pension (COAP) when you reach 66 years of age?
No matter what stage you or your business is at, you should always consider succession planning as part of your long term strategy.
Whether you plan to pass the business on to family members or sell it on to a third party, good planning is vital to ensure that the transition runs smoothly and that any potential tax issues are identified and planned for.
Without proper planning both the person retiring from the business and the person taking over the business could incur large tax liabilities on the transfer.
But with good advice and succession planning, these tax liabilities can be minimised for both parties by availing of schemes such as Retirement Relief, Business Relief and Entrepreneur Relief.
This is a complex area and it is crucial to get good advice as early as possible in order to allow you to plan properly and get your affairs in good order.
We can examine your current business structure, discuss your succession plan and help you to put a structure in place that will be most beneficial to you and your family when the time comes to either pass your business on to the next generation or to sell it to a third party.
Timing is crucial with succession planning so the earlier you contact us the more help we can provide.
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