Archive for the ‘Pensions’ Category

Payroll Costs on the Rise

Monday, October 1st, 2012

Be aware that Minimum Wage Regulations have increased in the UK. See here for the new levels. https://www.gov.uk/national-minimum-wage-rates

Also, make sure you brace yourself, for the Pensions changes set to come into affect – big firms first, and then the medium, and then the small… employers are going to have to start paying into the pension fund for staff. Its starts in 2012 and carries on into 2016 by which point everyone will be effected. See: http://www.thepensionsregulator.gov.uk/docs/intro-to-work-based-pension-changes-2011.pdf

Lots of SMEs owner-managers¬† are grumbling about not even having a pension themselves… let alone having to find money to pay into someone elses !! Tough! …. the country is broke, and the government are putting the onus back onto the people to save for their own retirement. If you are working full time, flat out and still don’t have enough money to set aside for your future pension… by the time you retire, do you honestly think your situation will have got any better? Or will you still be scrimping along?

A lot of people are just going to wind up and close their doors at this rate because these expenses seem to be on the rise…

But you can’t complain… we’ve been given ample warning… get your financial house in order right now. If you need help – contact us, and we can help you with your financial planning: admin@boogleslt.com

Pensions Reform – Employee costs set to rise….

Wednesday, August 3rd, 2011

Another set of regulations is set to fall on the shoulders of all employers. This time it’s a compulsory pension scheme for all employees.

This new pensions law is due to be introduced over four years from October 2012. The largest employers (120,000 or more employees) will be forced to sign up first. Those who employ less than 50 workers will be required to take part in the scheme from a date sometime in 2014 to 2016. The exact date will depend on your PAYE reference number.

Only one-man companies will be exempt, otherwise every employer who has workers in the UK will be required to enrol those workers in a pension scheme. There will be exceptions for workers aged under 22, over state retirement age or paid less than £7,475. Employees will have to take an active decision to opt out and sign a form to do so. The employer will not be permitted to induce employees to opt out, or to screen out potential employees who do not wish to opt out of the pension scheme.

Employers and employees will be required to make contributions to the pension scheme totalling 8% of the workers earnings, including tax relief given on the employees’ contributions. The employer must contribute at least 3% of the workers’ earnings. This level of compulsory contributions will be imposed gradually over five years to 2017.

Employers can use an existing pension scheme, set up a new one, or use the new low cost pension scheme established by the Government called NEST (National Employment Savings Trust). Where an existing scheme is used the employer will have to certify that it meets all the requirements for compulsory pension saving. Every employer will also be required to register with the pensions regulator.

To prepare for these new regulations talk to your pension scheme provider, if you have one. If you don’t have a workplace pension scheme you need to plan to set one up as this can take sometime to implement, and to start budgeting for the costs!

Taken from: accounting-help.co.uk