Introducing a pension scheme to your company can have significant advantages. It can boost morale among employees plus help to recruit and retain staff.
Another benefit is the tax relief employers’ contributions attract. Occupational, personal and stakeholder plans are a tax-efficient way of increasing employee benefits and remuneration. Employer contributions are also an allowable business expense and are therefore not subject to corporation tax.
Employers are now required by law to offer access to a pensions scheme, exemptions apply in certain circumstances but it is important you understand your responsibilities. Employers are increasingly being encouraged to participate in the promotion of pension saving.
Downton & Ali Associates are specialists in advising and arranging pension schemes for small and large businesses. Our business consultants can explain your responsibilities, as an employer and the various options available. They will ensure that both directors and staff have a full understanding of the advantages and disadvantages of joining a company pension scheme.
Group Pension Plans
A group personal pension (GPP) scheme is a collection of individual personal pensions. One of the benefits to employees are fees in a GPP are sometimes lower than those of individual personal pensions, making it more affordable to save for retirement.
Downton & Ali Associates can arrange for your company to offer employees a group personal pension (GPP). Providing certain requirements are met by both yourself and the scheme provider, you may be exempt from the legal requirement to designate a stakeholder pension scheme.
Stakeholder Pensions
If you employ five or more staff, you are required by law to offer your staff access to a stakeholder pension scheme. From the date you employ your fifth employee you only have three months to choose your designated stakeholder plan, inform your employees and offer them access to it.
Downton & Ali Associates can ascertain if your company is exempt under certain conditions. A business consultant will explain the options available and can help you meet your responsibilities as an employer.
NEST
From April 2012 new regulations come into force making it compulsory for employers to not only provide a pension scheme for all qualifying employees but also to contribute to the plan. The employees also have to contribute unless they opt out but is is not possible for the employer to Opt out. You can see more information about your obligations as an employer on the link to the right titled NEST Personal Accounts.
You can speak to us about your obligations under the new scheme but also how you can use these new regulations to your advantage.
Executive Pensions
As a company director, you can set up an executive pension plan. These offer great tax advantages on both the fund and contributions. Another benefit of an executive plan is the flexibility of payments.
Executive plans are renowned for their complexity and the ongoing maintenance. Downton & Ali business consultants will not only arrange an executive plan, they will regularly review and monitor the plans progress. Our aim is to take the complexity out of planning for your retirement, whilst ensuring you are benefiting from the most tax efficient and flexible means of saving.