PENSION REFORM - YOUR OBLIGATIONS
Periodically the Government introduces new reforms to help improve the way that pensions are run. Reforms are introduced to help improve products, providers and processes. Be aware, that most reforms can take a long time to come in to effect, as they have to go through Parliament and need to be considered in great detail. Others may not even happen, or other legislation may postpone their development.
In October 2012, the UK Government introduced workplace pension reforms, known as Auto Enrolment. Over the course of a phasing-in period, all employers were required to auto-enrol all eligible employees into a Qualifying Workplace Pension Scheme.
As a company director or business owner, it is your obligation to understand which schemes qualify, the process involved, how they are structured and the regulations you must comply with.
Since April 2019, employer contributions have been a minimum of 3%, and member contributions are at least 5% (this includes 1% rate tax relief). This gives a total pension contribution of 8%.
To help you meet these obligations, we will take the time to understand not only the finer details of your business, but also your own personal plans and ambitions for the future. We will carefully explain the issues and requirements around workplace pensions and offer guidance to help ensure your business is fully compliant and working within the rules.
reasons to Act Now
- Your existing scheme may be of poor value or may even not be fit for purpose, needing to be modified or made more efficient.
- Budgeting in advance will allow you to prepare for and minimise additional costs.
- Strategic Planning will allow you to identify the optimum solution to your workforce.
- Employee Communication – your employees need to know what is going on
- Consider Salary Exchange – it could save you money
- Ensuring you meet your Regulatory Requirements – Can protect you from penalties of up to £10,000 per day for larger companies.
- Be one step ahead – beat the rush
There are countless solutions available to you, and it is important to note that the most obvious solution may not be the correct one for you.
If you consider that many companies outsource their VAT returns, automatic enrolment is much more complex and can carry greater penalties. This is something we can help with. Contact us to discuss your pensions requirements.
The value of a pension will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Get in touch To Find Out More