Workplace Pension

The Workplace Pension Act has been running successfully since its major changes and companies rapidly enrolled their employees to avoid any penalties or strict action by the government. However, the recent update of UK Workplace Pension schemes includes major changes and regulatory adjustments.   

The changes implemented in April 2024 state that the Lifetime allowance has been put to an end and three new allowances were introduced i.e., lump sum allowance, lump sum & death benefit allowance and overseas transfer allowance.

Moreover, the annual allowance for pension contributions has been increased.

Lastly, any changes in annual allowance calculation will require trustees and administrators to state any negative valuation. It should be done while calculating inputs for an improved scheme within the employment period.

These updates reflect ongoing efforts to improve transparency, governance, and long-term sustainability within the UK pension system, ensuring better outcomes for savers and aligning practices with international standards.

Workplace Pension
Workplace Pension

Pension Provider:

The government in the UK consistently improves the workplace pension system to provide better services. But keeping up with the changes and letting things run smoothly you will need to choose a pension provider to offer a workplace pension. After reviewing the options in the market, we recommend choosing Smart Pension to supply your standard life workplace pension, though other choices exist. 

If you aim to grow your practice and increase your profits by reducing overheads, now is the perfect time to contact us. ACOOTAX’s outsourced accounting service is specifically designed for accountants and accounting firms in the UK. Our service can help you quickly acquire more clients and boost your revenues while cutting costs by 50%. In the current economic climate, it is crucial to avoid adding unnecessary overheads to your business.

Service Proposition:

A – Selection and Set up of the Scheme – No ongoing administration

You can consult ACCOTAX – Accountant & Tax Consultants for an estimate of costs that cover pension enrolment issues. ACCOTAX ensure work on a pension of your automatic enrolment pension scheme so it can be smoothly implemented according to the Pension Regulator’s rules and regulations

Our Fee:

Setup Cost for the company: £120 plus VAT – Once off

Adding each employee on the system: £50 plus VAT – a one-off

Triannual declaration: 120 plus VAT

As soon as we add you to the portal, you will be provided login detail and you can manage the scheme yourself.

B – Selection, Set up, and Ongoing Auto Enrolment Administration

ACCOTAX – Accountants & Tax Consultants is working with smart pension so the people can get benefited by on-going servicing of the scheme and smooth implementation, while strictly adhering the Pension Regulator’s rules and regulations.

Our Fee:

Setup Cost for the company: £100 plus VAT – if we are doing it.

The monthly cost for each Employee: £12.50 plus VAT:

Declaration of Complaince: £100 plus VAT

When 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. 

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
Workplace Pension
Workplace Pension

Tax Relief for Employee Members:

If there are any uncertainties, you should contact your accountants or Accounts Manager; they would be in a position to tell whether employer contributions which are deductions under Corporation Tax legislation could be made based on Workplace Pension Plan provisions or not. The pension scheme functions under the condition of a net pay arrangement whereby it is the responsibility of employers to cater for employees’ contributions and adjust them against their total earnings hence making them automatically eligible for tax reliefs at marginal rates. 

Transfer of Existing Pension Plans:

Smart Pension allows the transfer of existing pension funds into the Smart Pension scheme at no charge, however, if advice is required you can consult ACCOTAX – Accountants & Tax Consultants at minimal charges with an expert.

Summary

The recommendation provided aims to meet your business-specific needs, comply with auto-enrolment laws, and ensure to provide staff with high-quality and cost-effective pensions. The pension design is user-friendly ensuring time effectiveness and saving money, so you can focus on running your business.

For any queries do not hesitate to contact ACCOTAX!

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