You and your business
Providing pension schemes and other benefits for your staff can be seen as a useful tool in helping you both to attract and to retain your staff. It also helps you to have a motivated and healthy workforce. We can help you to devise a pension scheme that will be of most benefit to you and your staff by identifying the best providers for each service while taking advantage of any tax savings. We can also advice on salary sacrifice schemes and can provide advice clinics and support for your employees. We can help you set up your system immediately in a way so as to minimise the impact of your employer contributions.
Death in service
If an employee dies, Death in Service (DIS) provides a tax-free lump sum to the deceased's nominated beneficiaries. It provides the surviving family with a lump sum to help protect their financial future.
DIS is one of the cheapest forms of life assurance available. It is often used by directors solely to pay for family benefits without having the benefits taxed, or entered on form P11D.
Additional benefits can be attached to a DIS scheme. Some offer discounts for employees offering Private Medical Insurance (PMI) and Income Protection (IP or PHI) policies.
Cassons Financial Planning can help you consider your options.
Other employee benefits that could be of interest for your workforce are:
- Private health insurance
- Private dental insurance
- Gym membership
- Advice surgeries - provided by Cassons Financial Planning
Protection of the business owners
In order ensure the smooth continuation of your business we will also arrange business protection, also known as keyman insurance. This protects the business against the potentially financially devastating impact of the death of a key member of staff.
If you are in this position of being a business owner, you may also want to consider shareholder and cross option agreements for the protection of your family and fellow shareholders. The death of a shareholder (or partner) can have a major impact on any business as the decision has to be taken about the future of the shareholding of the deceased director. With this type of agreement each shareholder agrees that upon their death their fellow shareholders have the option to buy their shares generally at market value, and that his (or her) personal representatives have the option to sell his (or her) shares to the surviving shareholders. This will encourage the business to continue.
The Pensions Act 2008 introduced major reforms to workplace pensions. Under these reforms:
- all employers in the UK must offer a qualifying workplace pension to their workers
- all eligible workers must be automatically enrolled into the chosen scheme (even if they subsequently decide to opt out)
- the employer is required to pay a minimum level of contribution in respect of their workers. The tiered system of contributions starts at 1% and is stepped until it reaches 3% employer contribution by 2018
These reforms commenced implementation in October 2012 and will continue until October 2017. The Pensions Regulator will write and give you 12 months notice of your staging date ie the date by which your new scheme needs to be in place. We strongly recommend that you find out your staging date in advance of this so that you can be aware of your additional financial obligations and begin the planning process as soon as possible.
The initial and ongoing requirements are incredibly complex. The regulator can and will impose heavy fines on employers that do not comply. We suggest that you need to start planning at least 12 months ahead of your staging date to ensure that you comply with the requirements for both the pension scheme and the additional payroll applications that will need to be installed.
Cassons Financial Planning Limited are ideally placed to provide a straightforward approach to help you review the impact of auto enrolment on your business, and then help you with implementation. We have already helped many clients through the process and so we are aware that the reality of implementation is much more complex than the bullet points above may suggest.
As well as advising on the pension scheme selection and set up, we will also be able to give hands on support on the day to day implementation by introducing you to Cassons Accountants and Business Advisers which is part of the Baldwins Accountancy Group. The obligations from the workplace pensions regime everytime the payroll is run are strenuous so we are finding that many clients are keen move their payroll to a payroll bureau such as that operated by Cassons Accountants and Business Advisers. If you choose to keep your payroll in house Cassons can advise and quote on the purchase of upgraded Sage Payroll software.
Call us now on 0345 337 9409 to find out how we can help you or send us an email.
Keep up to date with the latest news on auto enrolment by visiting our blog.