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LaurasOtherHalf

Original Poster:

8,188 posts

80 months

[news] 
Wednesday 3rd October 2012 quote quote all
Or realistically can I make it an attractive incentive for staff without it costing my small limited company a fortune?


PurpleMoonlight

2,625 posts

41 months

[news] 
Thursday 4th October 2012 quote quote all
Of course you can start one. Talk to an IFA.

Chances are they will suggest a Group Personal Pension Plan.

The workplace pension reforms won't hit you for several years yet so there is no minimum contribution other than what the provider of the GPPP imposes. To use it to motivate and retain staff though your contribution will need to be meaningfull, say 5% of salary. You will of course get corporation tax relief on that.

LaurasOtherHalf

Original Poster:

8,188 posts

80 months

[news] 
Thursday 4th October 2012 quote quote all
What are the future plans for any reforms or is no one sure yet?

PurpleMoonlight

2,625 posts

41 months

[news] 
Thursday 4th October 2012 quote quote all
It's the stuff that the Government is pushing on TV at the moment.

It will mean you have to auto-enrol your employees in NEST or a suitable alternative and you and they have to make contributions to it. Eventually the contributions will reach 5% employee and 3% employer of earnings between the LEL and UEL (NI limits).

If you set up a half decent GPPP now that can be used as a NEST alternative when the time comes.

The IFA will explain it all to you.

rog007

3,448 posts

108 months

[news] 
Friday 5th October 2012 quote quote all
Your desire to do well for your staff is admirable, but having recently seen two small organisations I know get in to difficulty as a direct result of poor pension implementation, please ensure you take some good advice from a pension specialist experienced in SME requirements, then triangulate that advice before you sign up. Good luck!
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LaurasOtherHalf

Original Poster:

8,188 posts

80 months

[news] 
Friday 5th October 2012 quote quote all
Many thanks for the advice guys, rog any indication of exactly what to look out for or the problems these companies you know faced?

rog007

3,448 posts

108 months

[news] 
Friday 5th October 2012 quote quote all
I don't have the fine detail for each case, suffice to say that the decisions and choices that they made many years ago became unmanageable and unaffordable further down the line. Sorry I cannot be anymore specific.

3Dee

3,120 posts

105 months

[news] 
Friday 5th October 2012 quote quote all
hang on?
so NI is no longer part contribution to a state pension? ..and NI keeps going up?

..and now the govt want all businesses including very small ones to make even more contributions under the guise of another pension scheme?

OK, if you are doing reasonably well, I can see this is not unreasonable, but considering how the Govt, the banks and all their chronies have totally screwed the economy and small business prospects, many are struggling to make ends meet, only breaking even if that, and hoping for a return for better times... and I know many business owners that are funding their business from their own meagre private funds, overdrafts or mortguages just to keep going and keep their staff employed and in wages....

.....so now the Govt cook up another scheme that puts further pressure on the meagre financial resources for those where another 3-5% on the wage bill will tip them over the edge for a while yet.

All this will do is encourage the migration to using contract staff even more, and discourage the continuance of small businesses starting up or having a tough time of it at the moment.

They obviously have NOT thought this through!

I dispair on the stupidity and bad timing....

..then next thing the Govt will do is insist that all employess have private health insurance as well, contributed to by the business...
...and of course NI will still be taken!

Cake and eat it? Oh yes Minister!

Edited by 3Dee on Friday 5th October 17:40

Ollerton57

251 posts

62 months

[news] 
Thursday 11th October 2012 quote quote all
NI still goes towards a state pension, however a state pension isn't large enough to live off and isn't sustainable at it's current level (so will go down in relative value). This isn't a secret tax as the money is going into a private pension.

The idea is to try and turn the UK into a state of savers to have pension provisions which are supplemented by the state.

mph1977

7,248 posts

52 months

[news] 
Sunday 14th October 2012 quote quote all
Ollerton57 said:
NI still goes towards a state pension, however a state pension isn't large enough to live off and isn't sustainable at it's current level (so will go down in relative value). This isn't a secret tax as the money is going into a private pension.

The idea is to try and turn the UK into a state of savers to have pension provisions which are supplemented by the state.
which 'state pension'? ... there's at least two

- the basic state pension which there is no opt outs from
- S2P / SERPS which can be opted out and that used to contribute to an employers scheme - the whole thing aobut opting out and why if people opt out of exisiting employers schemes their NI goes up ( to pay for S2P) and also their tax goes up becasue any thing else 'left' by opting out is now taxable income

thern there's the new NEST etc stuff which the government doesn't explicitly pay into ( employers and employees do ) although the government does 'contribute' in terms of the tax positions of both companies and individuals

edc

4,834 posts

135 months

[news] 
Monday 15th October 2012 quote quote all
Have a look at a salary sacrifice arrangement. Some or all of the savings can go some way to offsetting your administration cost or your level of employer contribution.

thomson

275 posts

87 months

[news] 
Tuesday 16th October 2012 quote quote all
Setting up a 3 man GPP is going to be pretty much impossible. The minimum average contribution is approx £750 per annum per person. The main issue for you is Auto Enrolement, which is the new legislation recently introduced. Any GPP in force will need to be "same or better than" in respect of contribution levels , to enable exemption from the new regs. NEST is simply a default scheme choice, which is not government run.IIRC go to nest.gov.uk for guidance on staging dates & contribution levels, with having so few employees, your responsibilities do not come into force for a few years yet. It may be an idea to put in place some form of death in service initially, then review pension needs in the future.HTH.
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