Money Maximising Advisors Ltd.
Financial Plan for Company Directors
Connect your business success with your personal financial future
You put time, energy and capital into your company. A financial plan should show how that effort can support your family, build personal wealth and give you choices about when to step back.
We help you connect
- Business income
- Pensions
- Tax planning
- Cash flow
- Mortgages
- Investments
- Protection
WHO WE HELP
A plan for the director and the family behind the business
At MM Advisors, we help company directors bring business income, pensions, tax planning, cash flow, mortgages, investments and protection into one plan. We work with your accountant and solicitor where appropriate so decisions about the company support your personal goals.
You may be an owner-director, one of several shareholders, a director employed without an ownership stake or a professional running a company alongside another job. Your spouse may work in the company, work elsewhere full-time or part-time, or have no paid employment. These circumstances affect the options available.
Our planning approach considers what you own, how you are paid, what the business needs and what your household wants to achieve. Salary and pension decisions can be relevant to employed directors; dividends, share sales and ownership succession depend on your shareholding and other conditions.
Your financial plan
What a good director financial plan should give you
The aim is an actionable plan that helps you decide what to retain, what to spend and what to put towards your future.
- A clear view of company finances and personal wealth, with ownership kept distinct.
- A sustainable approach to personal income, company reserves and pension funding.
- Cash flow forecasts for the business and household, including quieter trading periods.
- A mortgage and investment strategy linked to your goals and retirement timetable.
- Protection for your family, key people and business ownership where appropriate.
- An exit and inheritance plan, with actions to discuss with your accountant and solicitor.
INCOME & TAX
Plan how money moves from the company to you
Balance personal income and business needs
A strong company bank balance does not tell you how much is available for personal use. We consider working capital, tax payments, loans, payroll, reinvestment and other commitments before assessing the surplus available for planning.
Working with your accountant, we consider how salary, bonuses, lawful dividends where you are a shareholder, employer pension contributions and genuine business expenses fit together. Each route has its own tax treatment and conditions. The appropriate mix depends on the company, your role and your family's needs.
Compare what you keep after tax and costs
Salary and dividends are taxed differently, and dividends are generally not deductible in calculating company profits. Pension funding can be tax efficient where the conditions are met, but access restrictions mean it cannot replace the income you need today.
We compare the overall effect on the company and household rather than looking at one tax rate in isolation. Your accountant confirms the tax treatment, payroll arrangements and any corporation tax deduction or timing requirements.
Keep company and personal funds distinct
A personal withdrawal is not automatically a tax-free loan or a deductible business expense.
Loans or advances by close companies to shareholder-directors or connected persons can trigger company tax charges and other consequences. Personal expenses paid by the company can also create tax liabilities. Have the treatment agreed before money is moved.
Understand close company surcharges
Close company rules may impose additional tax on certain undistributed income. Professional service companies can face a surcharge on part of their undistributed trading income, while undistributed investment or rental income can create a separate surcharge exposure.
This does not mean every euro left in every trading company is subject to a surcharge. We help you identify the planning questions for your accountant: the type of income, distribution timing, business cash needs and the tax cost of each option.
Keep the plan aligned with ownership arrangements
Where there are several directors or shareholders, payments and pension contributions must respect the company's approvals, commercial arrangements and legal obligations.
Your plan should work within those arrangements and avoid treating all company cash as one director's money.
PENSIONS
Use company pension funding with a clear retirement goal
Review PRSAs and occupational pension options
We assess suitable employer-funded pension options, including PRSAs and occupational schemes such as a master trust where available and appropriate. We compare funding rules, charges, investment options, administration and retirement flexibility.
The appropriate structure depends on remuneration, service, existing benefits and the amount you can afford to commit. We also review pensions from previous employments, AVCs and any public sector benefits you may have.
Understand the employer PRSA contribution limit
Under current rules, employer PRSA contributions above 100% of the employee's annual emoluments from that employer create a benefit-in-kind charge on the excess. Company profits or the company bank balance do not determine this limit.
100%of the employee's annual emoluments from that employer, under current rules
For example, if a director's emoluments from the company are €60,000 for the year, the current employer PRSA limit before that charge arises is €60,000 for that year. This illustrates the limit; it does not establish that contributing the full amount is affordable, deductible or suitable.
Occupational pension schemes have different funding rules. The PRSA salary limit should not be applied to every pension structure, and no structure should be described as allowing unlimited tax-relieved funding.
Coordinate personal and employer contributions
Personal contributions follow age-related relief limits and an aggregate earnings cap, currently €115,000 a year. Employer funding is assessed under its own rules. We review the interaction of all contributions, existing pension benefits and applicable lifetime pension limits.
€115,000current aggregate earnings cap for personal contribution relief
For larger or special employer contributions, tax deductibility and the timing of relief must be checked before committing funds. Your accountant and, where relevant, pension trustees or administrators help confirm the position.
Build wealth outside the business too
A pension can help you accumulate retirement resources separately from the value of your company.
Accessible personal savings and investments can serve other goals, including a career break, a home purchase or the years before pension benefits become available.
Plan the transition from work to retirement
We forecast retirement income, lump sums and options such as an annuity or Approved Retirement Fund where eligible.
We consider income tax on withdrawals, investment risk and the effect of continuing to work. Access ages and early retirement conditions depend on the arrangement and your circumstances.
CASH FLOW
Organise company and household cash flow
Know what the business can sustainably provide
We consider trading cash flow, payment delays, seasonal income, debt repayments and future investment alongside the household's commitments. Accounting profit and cash available in the bank can differ; the plan should allow for both.
With your accountant, we assess an appropriate operating reserve and tax provision. We then identify a sustainable level of personal income and pension funding, with a review process for additional surplus.
Automate accounts and transfers where practical
1Company
Company operating account
Receives trading income and pays genuine company costs.
Company tax reserve
Holds amounts based on estimated corporation tax, payroll liabilities and VAT where applicable.
Company contingency and reinvestment reserve
Provides for trading shocks, equipment and agreed growth plans.
2Household
Personal income account
Receives net remuneration and other properly paid personal income.
Household bills and spending accounts
Allocate money to essential commitments and everyday spending.
3Savings & goals
Personal emergency and goal savings
Fund unexpected costs, annual expenses, education and other near-term goals.
Agreed pension and investment payments
Fund long-term goals after essential reserves are protected.
We help design the transfer schedule and contribution levels. You retain control of accounts and authorise bank instructions. Company payments need the appropriate approval and accounting treatment.
Test the decisions before you make them
What if turnover falls? What if you hire staff, borrow to expand, take time off or buy a larger home? Could you reduce hours before selling the company? We model these decisions and show how they affect business reserves and family finances.
Forecasts consider tax, costs, inflation, investment charges and different return assumptions. They are estimates, and a review is needed when circumstances change.
Avoid relying on one future sale value
Your business may be a major asset, but its value and sale timing are uncertain. We assess what retirement could look like if the eventual proceeds are lower, paid in stages or delayed, alongside the wealth you build elsewhere.
YOUR FAMILY
Include your spouse and family in the plan
01
Your spouse works in the public or private sector
Whether your spouse works full-time or part-time, we review their actual pay, employer benefits and pension alongside your director income and pensions. We assess household tax arrangements where available and whether both partners' retirement dates and resources align.
A public sector pension, private workplace pension and director pension may have different access rules. We forecast the household across those dates and consider savings to bridge any gap.
02
Your spouse has no paid employment
If your family depends on your income, reserves and protection become particularly important. We include the value of unpaid caring responsibilities, access to money, previous pensions and the non-earning spouse's future security.
Available household tax credits and reliefs depend on the circumstances. Personal pension relief normally requires qualifying earnings; unused allowances cannot simply be transferred between spouses.
03
Your spouse works in the company
A genuine role in administration, finance, operations or management may justify appropriate pay and, where eligible, pension provision. We help assess how this fits the household plan, with the payroll and tax treatment agreed with your accountant.
Salary must reflect real duties and commercial remuneration. Keep evidence of the role, work performed and payment, and consider the applicable PRSI and employment rules. Simply putting a spouse on payroll does not establish entitlement to tax relief.
04
Employing children or other relatives
Family members may perform useful work where there is a real business need. Duties, hours and pay should be appropriate to their age, experience and responsibilities. Operate payroll correctly and check age restrictions and employment law.
We consider their other income, pension eligibility and the effect on family finances. Paying a relative is not an automatic route to tax-free income, and gifting money is a different transaction from paying wages.
05
Protect both partners and plan for children
We assess childcare and education costs, personal savings ownership and the resources needed if either partner became ill or died. Gifts and investments for children should be structured with their timing, ownership and tax consequences in mind.
INVESTMENTS & PROPERTY
Invest surplus funds and plan property decisions
Match the investment to the owner and the goal
We distinguish company money from personal investment capital and pension assets. Each has different tax, access and legal considerations. Money needed for tax, working capital or an approaching purchase should remain appropriately accessible.
For genuine long-term surplus, we assess suitable investment options against risk, diversification, charges and tax treatment. Irish tax rules differ between funds, ETFs, direct shares and other assets. Corporate investing also needs a separate assessment of future extraction costs and any close company surcharge exposure.
Consider the effect on a future sale or transfer
Investment assets or surplus cash held in a trading company can affect eligibility for, or the amount of, business-related tax reliefs.
The effect depends on the particular relief and facts. Discuss this with your tax adviser before adding a substantial portfolio or property holding to a business intended for sale or family succession.
Sharia compliant investment preferences
If faith guides your investments, we can explore suitable Sharia compliant options, subject to provider and platform availability. We consider stated screening standards, oversight, diversification, costs, currency risk and Irish taxation.
Pension availability differs by provider. Any purification requirements should be discussed using provider guidance and your preferred religious adviser. Sharia screening does not guarantee returns or low risk, and conventional borrowing or insurance requires separate religious consideration.
Mortgage advice for company directors
We help prepare evidence of remuneration, trading performance and other relevant income for your home mortgage. Lenders may require accounts, tax returns, payslips and an established trading record; company turnover or retained profits do not automatically count as personal borrowing income.
We assess buying or moving home, switching a mortgage and mortgage overpayments alongside pension and investment funding. Personal affordability includes your spouse's position and the income you expect when reducing work or retiring.
Property and business premises
If you are considering commercial premises or investment property, we help assess affordability and finance options where available. Personal ownership, company ownership, an SPV and pension ownership have different rules and consequences.
An SPV is not automatically more tax efficient or a way to move company cash without tax consequences. Pension property investment is subject to scheme, trustee and Revenue restrictions, including connected-party considerations. Proposed structures should be assessed before purchase with the relevant professional advisers.
PROTECTION & SUCCESSION
Protect the business and prepare for succession
Protect your income and family
We review life assurance, specified illness cover, income protection and mortgage protection against your household needs and existing benefits.
A director's ability to receive income may depend on continuing business performance, so personal protection and company arrangements need to be considered together.
Protect key people and ownership continuity
Where appropriate, we explore key person cover and shareholder protection. Key person cover may help a business meet the financial impact of losing an important person; shareholder protection may help fund an agreed purchase of shares following an insured event.
Ownership, beneficiaries, legal agreements, affordability and tax treatment are central to the design. Insurance should support properly drafted arrangements, with legal and tax advice where needed. Tax relief on premiums should not be assumed.
Prepare for a sale or family transfer before the event
We help you model the personal financial outcome of a sale, staged payments, a management succession or a transfer to family. The forecast should allow for transaction costs, tax and uncertainty over timing or proceeds.
With your tax adviser, we identify where Revised Entrepreneur Relief or Retirement Relief may be relevant to a disposal, and where CAT Business Relief may apply to a qualifying gift or inheritance. These reliefs serve different purposes and have detailed conditions, limits and possible clawbacks; being a director alone does not qualify you.
Planning early gives time to review ownership periods, working roles, company assets and succession intentions. Retirement Relief does not necessarily require you to stop working, but eligibility must be checked for the proposed transaction.
Plan the wider inheritance position
Business shares, your home, investments and pension death benefits need to be assessed under their respective rules. We coordinate with your solicitor and tax adviser on wills, succession arrangements and potential CAT liabilities for beneficiaries.
We can assess qualifying Section 72 life assurance to help fund inheritance tax where suitable. A gifting strategy should preserve your own financial independence, and transferring shares or property may also have other tax consequences.
ILLUSTRATIVE EXAMPLES
See how a director financial plan could work
Example 01
An owner-director building wealth alongside the business
Trading companyHealthy cash reservesSpouse in public sectorChildrenMortgage & pensions
A director owns a trading company with healthy cash reserves. Their spouse works part-time in the public sector. They have children, a mortgage and pensions, and want to reduce dependence on an eventual business sale.
Their plan could
Identify company working capital and tax commitments, assess appropriate employer pension contributions, coordinate the spouse's pension and AVC position, and establish regular personal saving. It would forecast retirement at different ages and compare mortgage overpayments with other goals.
Example 02
A director whose household relies on one income
One household incomeVariable trading incomeSpouse caring at homeMoving home
A director runs a company while their spouse cares for the family at home. Trading income varies, and the household depends on the director's remuneration. They want to move home and bring greater structure to their finances.
Their plan could
Establish a sustainable household payment, separate company and personal reserves, review protection for both partners, assess mortgage evidence and build savings for future education costs. Any genuine work performed by a spouse in the company could be assessed separately for appropriate remuneration and pension provision.
These examples illustrate the planning process. Contributions, structures and products depend on verified information and individual advice.
Illustrative examples only. Figures are simplified for illustration; actual outcomes will depend on your individual circumstances.
FROM WHERE YOU ARE TO WHERE YOU WANT TO BE
How MM Advisors can help
- 01Understand
Understand your priorities
We discuss the company, your family and the decisions you want to make.
- 02Gather
Bring the information together
We review remuneration, personal commitments, pensions, assets, debts and business financial information relevant to the plan.
- 03Plan
Build and explain the options
We show cash flow forecasts and recommendations with a clear action list and costs.
- 04Implement
Coordinate implementation
We arrange suitable financial products within our service scope and work with your accountant, solicitor and pension administrator where needed.
- 05Review
Agree reviews
We revisit the plan when trading performance, family circumstances or succession goals change, under the agreed service arrangements.
Before you proceed, we explain planning fees, product charges and any commission arrangements. Your accountant retains responsibility for tax filings and confirming company tax treatment, while legal implementation is handled by your solicitor.
FREQUENTLY ASKED QUESTIONS (FAQs)
Before you build a plan, you may be wondering…
A few of the questions that often come up with Company Directors.
Can my company pay into my pension?
Potentially, yes. Suitable employer funding depends on the pension structure, remuneration, existing benefits, affordability and the tax rules. PRSAs and occupational schemes have different funding conditions.
Can I use all retained profits to fund a PRSA?
A company bank balance does not establish the appropriate contribution. The current employer PRSA limit before a benefit-in-kind charge arises is linked to annual emoluments from that employer, alongside other suitability and tax considerations.
Should I take salary, dividends or pension contributions?
Each serves a different purpose and has different rules. We assess the company and personal position together with your accountant, including money you need now, tax, pension access and business cash needs. Dividends require share ownership and the relevant legal conditions.
Should I invest through the company or personally?
We compare liquidity, risk, taxation, future extraction costs and possible consequences for company tax reliefs. A company investment is not automatically preferable to personal or pension investing.
Can my spouse or children work in the business?
Yes, where there is genuine work, appropriate commercial pay and compliance with payroll and employment requirements. Pension provision and PRSI treatment need to be assessed for each person.
Can a company director get a mortgage?
Lenders consider applications from directors, but evidence and criteria vary. We help present the relevant income and trading information and assess affordability.
Is this service only for owner-directors?
No. Employed directors without company ownership can also benefit from financial planning. Shareholder profit extraction and succession options are relevant only where the appropriate ownership and other conditions are met.
Can you help me plan to sell or hand over the business?
We help forecast the personal financial outcome and coordinate with your accountant, solicitor and other transaction advisers. Tax relief eligibility, business valuation and transaction terms require their own assessment.
MORE FINANCIAL PLANS
Explore other financial plans
MORE HELPFUL GUIDES & ADVICE
Guides for Financial Planning for Company Directors
CLIENT TESTIMONIALS
What Our Clients Say
Take the next step
Make your business success part of a clear personal financial plan.
Tell us what you want to achieve, and we will discuss how MM Advisors can help.
Money Maximising Advisors Limited is regulated by the Central Bank of Ireland – C154250
General information only. Tax treatment depends on individual circumstances and may change. Investments can fall as well as rise and you may get back less than you invest. Pension access restrictions apply. Mortgage approval is subject to lender criteria and affordability. Product eligibility and availability vary.