In 2012 there was a new law introduced allowing employees across the U.K to start saving for the first time via a work place pension scheme. This new pension reform introduced by the government is phased over time dependent on the size of your company.
Companies may have to deduct an employee contribution from their salary and make a contribution to the scheme themselves as the employer. This new law relates to employees that are between the age of 22 and state pension age, earn above a lower limit set and work in the U.K, however other categories of employees must be given the opportunity to join the scheme aswell.
Without a compliant scheme in place, a business could face fines from £50 to £10000 per day depending on their size along with an immediate £400 fixed penalty fee. Auto-Enrolment schemes can take up to a year to implement so leaving this till last minute could be a costly mistake
Old Royle Wealth can assists businesses and company owners with their financial needs including auto enrolment. We can advise whether any current schemes you have in place meet the new rules or must be altered. If you don’t currently offer a pension, we can also recommend a suitable scheme.
Please note that aspects of auto enrolment advice are not authorized/regulated by the financial conduct authority however as a trusted firm, we always use the same approach to ensure we provide consistent, high-quality advice on all aspects of financial planning, not just Auto Enrolment.
* A pension is a long term investment and the fund value may fluctuate and go down as well as up and you may get back less than you originally invest. Your eventual income may depend on the size of the fund at retirement, future interest rates, tax and legislation. The levels, bases and reliefs from taxation are subject to the individual circumstances of the investor, and may be subject to future changes. Past performance is not a guide to future performance and tax rules can change over time.