There are many reasons to start a pension scheme for all or some of your members of staff.

  • Your duty as a caring employer to assist in the longer term care of your staff.
  • To help attract quality individuals to work in your business.
  • To help retain quality individuals who already work for you.
  • The Income Tax and National Insurance benefits on contributions you make.

However, there is none more so than you legal obligation to provide a pension scheme if you have 5 or more employees in your business. Currently there is no legal obligation for the company to contribute but that is changing.

Personal Accounts are expected to appear in 2012 with the likely contribution basis to be set as follows:

Employer 4%

Member of Staff 3%

Government 1%

This creates an opportunity for you, the employer, to begin to start contributing now and been seen as a good employer, rather than wait until 2012 when your staff will believe your only doing it because you have to.

Careful advice is required when implementing a new scheme and you should consider the future change in legislation, how you announce the scheme, how you administer the scheme and so on. Simpson Financial Services are experts in guiding you through all the relevant aspects of setting up a new pension scheme.

If you wish to arrange an informal discussion please contact us here.