June 6, 2012

Workplace pensions create extra pressure for business owners

Despite the Government agreeing to delay the staging date (start date) for smaller business owners, it is still forging ahead with compulsory auto enrolment of employees into a workplace pension for larger companies from October 2012.

Although the principle behind the workplace pension i.e. saving for the future is all well and good, it just places greater pressure on the smaller business owner. Owner managed businesses are already struggling with banks unwilling to lend, squeezed cash flow and tied up in bureaucratic red tape. I really feel for the business owner who is constantly under the cosh trying to run a successful business yet meet the increasing demands from this Government obsessed with putting the onus back onto business owners to save the retirement industry from itself.

Know what should be you doing by now?  No, here are seven steps to prepare for automatic enrolment:

  1. Know your staging date – when to act
  2. Assess your workforce
  3. Review your pension arrangements
  4. Communicate the changes to all your workers
  5. Automatically enrol your ‘eligible jobholders’
  6. Register with The Pensions Regulator and keep records
  7. Contribute to your workers’ pensions

Find out more http://www.thepensionsregulator.gov.uk/employers.aspx or talk to your accountant.

For more information on this blog contact mark.busby@dbsellek.co.uk or 01344 620495.

Important - we endeavour to keep the information on this Site and the Blog accurate and up-to-date as far as possible. However, please remember the content is intended as a helpful guide only and may be subject to change at any time. Please always seek advice from your accountant or Davis Burton Sellek before acting on any of the information provided.

Written by Tags: , , , — Mark Busby @ 7:49 pm


September 26, 2011

Is your business ready for the 2012 Pension reform?

From 2012  changes to Pensions law will affect all employers with at least one employee in the UK. If you’ve not had time to consider the impact of the proposed pension changes on your business, then read on.

What are the 2012 Pension reform changes?

Every employer in the UK will be required to automatically enrol eligible staff into a pension scheme;

Employers will be required by law to pay pension contributions;

Employers will have to register with The Pensions Regulator who will enforce the new laws and will have the power to issue penalties;

Existing workplace pensions will have to comply with these changes;

Employers can use their own pension scheme to comply with the new laws or rely on Government National Employment Savings Trust (NEST)

When will the Pensions law changes happen?

The new rules under the Pensions Act 2008 will come into effect from October 2012. The changes will be phased in depending on business size.

Who is it for?

This will affect all employees aged between 22 years and the state pension age earning more than £7,475 and not already in a qualifying pension.

How much will it cost?

This has caused much confusion but the aim is for staff to contribute 5% of qualified earnings with the employer contributing a minimum of 3%. Staff can choose to elect out of the scheme and consequently not contribute; employers do not have this option. While funding the pensions of existing staff wishing to enrol will manifest itself as an additional cost, it should be possible through properly worded contracts for employers to insulate themselves against this cost for new members of staff.

Find out more about pension reform changes

Ask a Business Pension question: join me on LinkedIn Tues,15 Nov @ 3pm.

 

Important - we endeavour to keep the information on this Site and the Blog accurate and up-to-date as far as possible. However, please remember the content is intended as a helpful guide only and may be subject to change at any time. Please always seek advice from your accountant or Davis Burton Sellek before acting on any of the information provided.

Written by Mark Busby @ 1:32 pm


June 16, 2011

Don’t wait for 2012 Pension reforms – businesses must act now!


You probably haven’t had time to consider the impact of the proposed pension changes on your business. So we thought you might find this useful:

What are the changes?

From 2012 the onus will be on employers to automatically enrol staff into a pension scheme and for contributions to be mandatory. This could be an existing company scheme (if it meets the necessary criteria) or NESTs (National Employment Savings Trusts) which are being introduced by the Government to replace the ubiquitous Stakeholder Pension. Currently, employers need only offer a pension for five or more staff and contributions are optional.

When will this happen?

The new rules under the Pensions Act 2008 will come into effect from next year and are being phased in depending on business size.

Who is it for?

This will affect all employees aged between 22 years and the state pension age earning more than £7,475 and not already in a qualifying pension.

What will it cost?

This has caused much confusion but the aim is for staff to contribute 8% of their qualifying earnings towards retirement. Of this 8%, employers will eventually have to fund 3%.

What should I do next?

Don’t wait until 2012 – get in touch with us now to find out how the new rules will affect your business. We can advise on tax planning issues and put you in touch with an independent financial adviser should you require professional financial planning advice. We have no commission arrangement or affiliation with this adviser other than we think you’ll like them!

Please contact me for an initial discussion on 01344 620495 or mark.busby@dbsellek.co.uk

Important - we endeavour to keep the information on this Site and the Blog accurate and up-to-date as far as possible. However, please remember the content is intended as a helpful guide only and may be subject to change at any time. Please always seek advice from your accountant or Davis Burton Sellek before acting on any of the information provided.

Written by Mark Busby @ 7:54 am


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