As you may well be aware, as a result of the Pensions Act (2008) all UK employers must “automatically enroll” their qualifying staff into a workplace pension or face heavy penalties. This process of “auto-enrolment” began in 2012 with the largest companies and has now progressed to the stage of companies that were employing fewer than 30 employees on 1st April 2012 or incorporated since the 1st April 2012.
The deadline by which companies must automatically enroll their employees is called a “staging date” and is determined by the PAYE reference of the company’s largest PAYE scheme. You can find your staging date by visiting The Pensions Regulator’s website:
Being an employer, you will need to select a pension provider to provide its workplace pension. We have reviewed the options in the market and it is our recommendation that you should select Smart Pension to supply your standard life workplace pension, though other choices exist in the market. You will find a fact sheet of information about Smart Pension enclosed.
Therefore, if you want to grow your practice and want to make more money by reducing your overheads that is the best time to contact us.
Our outsource accounting service is tailor-made for accountants and accounting firms in the UK. Our service can quickly add more clients and increase your revenues while reducing costs by 50%. As you are aware, the current economic climate is not beneficial to add overheads to your business.
A – Selection and Set up of the Scheme – No ongoing administration
The services offered by ACCOTAX – Accountants & Tax Consultants are highlighted in our original cost estimate and effectively cover all aspects of the implementation of your automatic enrolment pension scheme. ACCOTAX – Accountants & Tax Consultants will work in conjunction with Smart Pension to ensure a smooth implementation and compliance with The Pension Regulator’s rules and regulations.
Setup Cost for the company: £75 plus vat – Once off
Adding each employee on the system: £50 plus vat – a one-off
As soon as we add you to the portal, you will be provided login detail and you will have to manage the scheme yourself.
B – Selection, Set up, and Ongoing Auto Enrolment Administration
The services offered by ACCOTAX – Accountants & Tax Consultants are highlighted in our original cost estimate and effectively cover all aspects of implementation and servicing of your Auto Enrolment pension scheme. ACCOTAX – Accountants & Tax Consultants will work in conjunction with Smart Pension to ensure a smooth implementation project and on-going servicing of the scheme, and compliance with The Pension Regulator’s rules and regulations.
Setup Cost for the company: £75 plus VAT – if we are doing it.
The monthly cost for each Employee: £10.00 plus VAT:
Annual Declaration: £50 plus VAT
Where you are running the payroll yourself, It is essential that your payroll software provides the correct outputs, as uploading this data to the Smart Pension platform is key to seamless auto-enrolment administration. Please see the Payroll Software Compatibility sheet for more details.
Your employee members will also be given online access to review and manage their pension. Smart Pension’s online and customer support services will include the following functionality:
• Personal detail updates
• Opt-in and Opt-out forms
• Ability to manage their monthly Additional Voluntary Contributions (AVCs)
• Personal pension calculators
• Help guides & videos
Tax Relief for Employee Members:
Workplace Pension contributions made by the employer are a deductible expense against corporation tax. If in doubt you should seek advice from your accountants/Accounts Manager. The scheme is a net pay arrangement scheme, whereby member contributions are paid on their behalf by the employer and are deducted from gross salary, so tax relief at marginal rates is automatically received.
Transfer of Existing Pensions Plans
Smart Pension will allow the transfer of existing pension funds into the Smart Pension scheme at no charge, however, if advice is required this can be provided by ACCOTAX – Accountants & Tax Consultants at a cost to the member.
The recommendation provided meets your business needs, complies with auto-enrolment legislation, and will provide staff with high quality and cost-effective pension. The pension will also be quick and easy to administers, saving you time and money, so you can focus on running your business.
Please do not hesitate to contact me if you have any further questions.