What I am writing about this month is old news but very few employers actually take full advantage on behalf of their employees.
HMRC introduced a “pensions advice” exemption as from April 2017 and this is not a P11D benefit for the employee. I raise this point as from our experience, very few employees really understand their pension benefits. There are instances, when Employers will use the services of an intranet site to give the employee access to “employee benefits package” but how many employees actually use this service?
These sites are designed to provide generic information with no formal advice process. The use of calculators is a reasonable indicator for future retirement benefits, but how does this relate to the individual employee’s wider circumstances?
More employers are waking up to the fact that to help retain employees, access to financial advice in the workplace is a useful benefit.
Questions to ask yourself
- Whether you are a Director or administrator do you really understand your pension arrangements?
- How does it relate to your own circumstances?
- What happens, to my retirement fund, if I were to suddenly die?
- I am a higher rate tax payer, can I reclaim back some additional tax?
- Am I invested in a particular fund, what does this mean and is it right for me?
- What are my choices at retirement and how does my pension interact with my other assets?
These are only a small selection of questions that are commonly are asked at our workshops.
If the future success of your business, is influenced by the financial well-being of your employees, could this £500 per employee as an allowable business expense be a step in the right direction?
To know more, contact our Corporate Services team today on 0333 241 3350 to arrange an exploratory discussion with one of corporate advisers.
Nigel Taylor Cert PFS, Dip FA
This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned about the content hereof and any such action or inaction. Professional advice is necessary for every case.