We have probably all seen the TV advertising of the strange purple monster in the park advertising Work Place Pension Schemes, and for many employers 2017 will be the year in which they have to start providing one for their employees. Every employer should know their staging date and if your’s is getting ever closer, maybe now as we head towards the end of the year, is the time to get your pension sorted!
Does it affect you?
It is true that most companies are affected by this, but not everyone. It depends on the age and earnings of those people you employ including yourself. We have found the very occasional situation where a pension scheme may not have to be established straight away and possibly not at all, so knowing if this applies to you is a good idea. Either you need to find out more, or you need to get yourself exempted from the regulations.
If you are required to establish an Auto Enrolment scheme, here are some of the things you need to do?
- You need to decide ‘who’ in your company will deal with this
- You need to make sure you know what it entails and the most cost effective option for your company
- You have to offer a pension scheme and may need help in deciding which one
- You need to consider how the pension contribution collection will be compatible with your payroll arrangements
- You will have to communicate with your employees
- You will most likely have to pay into the pension but what it will cost depends on various issues which you need to be aware of
- Most employees will have to be automatically enrolled into the scheme
Help is at Hand
What is clear is that companies need assistance with this. This is why we at Grosvenor have devised a menu approach to our Auto Enrolment proposition, particularly for small companies. You decide what you need help with and we will provide that part of the service. You might need an initial meeting, help with payroll, a recommendation and implementation of a suitable pension, and perhaps a presentation to your employees. We have assisted numerous companies over the past few years, helping many reduce costs while also promoting the pension to staff so they understand the benefit and what their employer is doing for them.
Automating as much of the requirements as possible is important and making sure any pension runs smoothly in conjunction with your payroll provision is perhaps the most important aspect – well that and making sure you are signed off by The Pensions Regulator and avoid the fines!
Author: Phil James, Grosvenor Consultancy Ltd
There are advantages and disadvantages to using all of these strategies and they depend on individual circumstances so don’t take action without seeking competent advice. Tax rules, rates and allowances are all subject to change. The Financial Conduct Authority does not regulate tax advice and some forms of offshore investments. The value of investments and the income from them can fall as well as rise and you may not get back the full amount you invested.
The information contained within this document is correct as at 2015/16 tax year and are based on current government legislation. These can change.
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