Entrepreneurs Business is Not Pension

Entrepreneurs Business is Not Pension

In a recent speech, Rowanmoor pension trustees director of consultancy David Seaton has said that pension simplification has been a disaster and was urging business owner manager entrepreneurs not to rely on the sale of their businesses as their pension.  

He said: “If the Government had understood the issues better and not made ill-informed knee-jerk decisions, we, and I include the poor people at HM Revenue and Customs would not have been faced with such complex legislation”.

Seaton also said that too many owner manager entrepreneurs see their businesses as their pension, which is a dangerous sentiment.  Unforeseen market changes can render a business worthless.  

Our view

We suggest it is vital that owner manager entrepreneurs use some of their profits to fund pensions.  They are an allowable expense against tax and any company or employer contributions are not treated as a benefit in kind.

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