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Pension participation rates hit a new high! This is all thanks to auto-enrolment!

Pension participation rates hit a new high! This is all thanks to auto-enrolment!

So thanks to Auto Enrolment, more than 15 million people had signed up to a workplace pension by the end of 2015, and  that is 10.6 million more than were enrolled at the start of 2012. This is according to the latest figures released by the Department for Work and Pensions and this is a staggering amount of people.

In plain language, this means that 75 per cent of eligible employees are now enrolled in a workplace pension.

Participation is up across all age and income groups, with the largest increases taking place in the private sector.

Employers need to make sure that their employees are aware of the value of this benefit, as well as the fact that it will be their responsibility to take the decisions to make the most of their pension when the time comes.

Employers can use this to offer incentives to their staff.  Instead of an increase in salary, it can be more beneficial to offer to increase the amount of pension paid into the pot, since it will save them tax on the pension contribution.

Auto Enrolment is a key role in retirement planning now for generations to come.

IF YOU ARE HAVING ISSUES WITH AUTO ENROLMENT, THEN CALL US NOW AND WE CAN MAKE THIS HASSLE FREE FOR YOU!

Christmas Party this year? Make sure you know the rules on your allowance first or this could cost you dearly!

Christmas Party this year? Make sure you know the rules on your allowance first or this could cost you dearly!

Christmas Parties Allowance

The tax allowance for any annual Parties and functions is £150 per head per year in total. This has been fixed since 2003 and can includes several annual functions such as the Christmas party, summer party or annual golf day.

If a function takes the cost per head over £150, even by just 1p, tax is due on the total cost and not just for the excess over £150.

Some good news is that the employer can plan and choose which event triggers the excess charge, so they pick the lower costing event to treat as fully taxable.
This allowance should go up with inflation, but HMRC has not increased it since 2003. With rising venue costs and employee expectations, pressure is on employers to be able to provide a great party at a reasonable cost.”

Where the costs end up more than £150 per head, employers will be unlikely to want to be seen as mean by asking employees to pay tax on the party.

In this case, they could consider entering into a PAYE Settlement Agreement (PSA), which means that the employer pays the additional tax rather than the employee.

“This tax can increase the cost of the party so the decision should not be taken lightly, but it would be a nice Christmas present for employees.”