Jay and Del wanted to take more control of the timings and management of projects without having to rely on suppliers for products to install.
“We talked about the possibilities of setting up a manufacturing business, designing and supplying our own architectural aluminium windows doors and curtain walling,” explains Claire. “That way we could be sure to meet and exceed customers’ expectations. However, the big issue, of course, was how to fund it.”
“So we turned to Nick. After giving it some thought he suggested we set up a SAS – a small, self-administered pension. He explained how we could use Del’s and Jay’s pension pots from previous employment, which were in the background doing very little, to finance the expanding business.”
Nick fleshed out the detail: “A SAS is only available to limited businesses which are trading,” he explained. “You can borrow up to 50 per cent of the pension value at just one per cent over base. It’s cheap borrowing and you are effectively paying yourself interest. The SAS can be used to invest in commercial property and you charge yourself rent. It’s a great scheme for businesses wanting to expand.”
SAS without the fuss
“We didn’t have to do much at all”, continued Claire, “as Nick set it all up for us. In November 2013 we purchased a great unit in Ashton, Bristol, and kitted it out with all the machinery and equipment we need to produce stunning designs – all using the cash released through the SAS.”
“Although I am now the financial director for Architectural Aluminium and Glass Ltd, Nick continues to provide us with the corporate accounts package and ongoing advice as laws change,” Claire concluded. “He makes sure we pay ourselves the right amounts of salary and dividends to mitigate as much tax as we can.”
“We’ve doubled our turnover year-on-year since 2013. Nick’s advice and help have put us in a very strong position.”