Assured FD Services 1 Comment

Auto-Enrolment for Small Businesses

A commonly held perception is that pension schemes for staff are only required for companies with a lot of employees and a high turnover. However, by virtue of the law passed in 2012, auto-enrolment into a company pension scheme is mandatory for every business type, be it on a big scale or small. It is obligatory that every employee of the company has the facility to be a member of a pension scheme.

There has been a hefty amount of penalty and fines imposed if the business owner fails to fix up the auto-enrolment scheme for their staff.

Based on the issued rules and regulations, the daily fine charged can range from £50 to £2,500 based on the total number of employees.  Recently, PayCircle estimated that UK businesses could face fines totaling £22 million in auto-enrolment fines.

View this short video from the Pensions Regulator about Auto Enrolment for employers.

If you require any assistance or guidance on setting up a pension scheme arrangement within your company, consult with a professional part time FD from Assured FD Services.

Phil Hall No Comments

Pensions and Higher Rate tax payers.

One of the more interesting facts that I’ve discovered in the 18 months since I became a part-time Finance Director with Assured is that if you find an issue with one client, then invariably you’ll find it at another. And the issue can be a relatively straight forward one.
I read the other day that the coalition are considering plans to cut higher rate pension tax relief. That is to say limit relief to 20%. That reminded me of an issue I have found at a couple of clients I have worked with as FD.

The circumstances were the same in each case. The Company calculated income tax on their employees earnings BEFORE any pension contributions. The pension provider then claimed back the 20% tax from the Government and grossed up the pension pot accordingly. Fine. However, the Higher rate tax payers were not aware they could claim back another 20%.
Rather than wait for their tax returns, I drafted a letter to HMRC claiming back the relief for this AND earlier years and had their tax coding notices changed accordingly. Job done.

If you think this could apply to you or you need help with any financial management issues, call me now on 07817 676371 or e-mail me at assuredfd.co.uk.