08/05/2026
Why Every Business Owner Needs a Lasting Power of Attorney
Business resilience is often discussed in terms of cash flow, staffing and growth strategy.
Yet one of the greatest hidden risks is this:
What happens if the owner or director suddenly cannot make decisions?
For many owner-managed businesses, key decisions sit with one person. If that person loses capacity through illness or accident, operations can stall immediately.
The Overlooked Risk
Without a registered Property and Financial Affairs and Health and Welfare Lasting Power of Attorney (LPA), nobody automatically has authority to manage personal financial matters or certain connected business interests. In many cases, the alternative may involve a Court of Protection application, causing delay, cost and uncertainty.
Why It Matters in Business
An appropriately drafted LPA can support continuity by enabling trusted attorneys to assist with matters such as:
✅ Business bank accounts (subject to bank procedures)
✅ Tax matters and HMRC correspondence
✅ Supplier payments and payroll approvals
✅ Property matters and leases
✅ Shareholding or ownership interests (depending on structure and governing documents)
✅ Day-to-day financial decisions
HMRC recognises that a person may appoint someone to deal with tax affairs through a power of attorney.
What About Tax Advantages?
An LPA does not directly reduce tax. However, it may help preserve financial efficiency by:
💷 Timely tax planning – Attorneys may be able to continue legitimate planning already in your interests.
💷 Avoid penalties – Helps maintain tax filings, VAT returns and PAYE obligations on time.
💷 Protect reliefs – Delays in transactions can sometimes risk losing valuable reliefs or allowances.
💷 Business continuity – Prevents avoidable losses that can arise when no one can act.
Strategic View
For entrepreneurs, directors and investors, an LPA should sit alongside:
• Wills
• Shareholder agreements
• Key person insurance
• Succession plans
• Estate planning
Summary :
A Lasting Power of Attorney is not just a personal legal document.
For business owners, it is a practical continuity tool.
If your signature keeps the business moving, make sure someone trusted can sign when you cannot.
Phone me on 07970 776935 / e-mail me on [email protected], to make an appointment for me to put these valuable documents in place for you.
