Company Pension

imported_jac

Hi

We are a very small company with just two employees, my son and myself. I am over the age of retirement but my son hasn't got a pension and the auto-enrolment law has made me realise that I should pull my finger out and get something organised. Should I just use the scheme under the auto- enrolment or would it be better to shop around?

Thanks in advance. Jackie

kidmugsy

imported_jac wrote: »

I am over the age of retirement

Sorry I can't help with your enquiry. But if you mean that you are over the State Retirement Age, then a suggestion. If you have not already done so, consider suspending ("deferring") your State Retirement Pension. It's the best value pension investment you could make for yourself - every year of deferral gets you an extra 10.4% extra pension.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299286/dwp024-apr-14.pdf

xylophone

http://www.icaew.com/en/archive/library/subject-gateways/pensions/small-business-update/action-list-how-to-set-up-a-pension-

The above might be worth a read.
http://www.unbiased.co.uk/

imported_jac

Thanks kidmugsy. I am already drawing my pension. I'm a bit of a cynic and thought I'd better have the benefit of it now in case I die soon.
Thanks xylophone, I'll have a read.

dunstonh

We are a very small company with just two employees, my son and myself.

Are you employees, partners or directors?

imported_jac

Hi dunstonh. It is a limited company and I am a director and my son is an employee. My pension is all sorted but I need to sort out a works pension for my son who is in his thirties.
Regards Jackie

RickyC_IFSWP

More than likely better to shop around. Are you a member of the FSB by any chance since you are a small business? There's an exclusive auto enrolment pension scheme for members available if so.

greenglide

If your son is an employee of "your" limited company then the company can pay pension contributions directly for your son. This means that no NI contributions are deducted (employee and employer) and the payments are tax deductible for the employer.

Obviously you would need to ensure that your son knew what the payments were worth. I would get him to start the pension, I does not need to be auto-enrolment.

Your_Hero

As long as your son is earning over £10,000 ("qualifying earnings" which includes salary, wages, commission, bonuses, and overtime) then he needs to be enrolled onto a "qualifying workplace pension scheme" for auto-enrolment purposes. This isn't just any old pension scheme you can find. There are many rules governing this and only a handful of firms currently offer this.

You as the employer needs to contribute 1% to begin with, and so does the employee (your son) at 1%. This will rise to 3% from the employer, and a total contribution of 8% by 2018.

You can find out more from the Pension Regulator website. http://www.thepensionsregulator.gov.uk/employers/what-is-automatic-enrolment.aspx

As always, if it's too much to take in, best to seek advice but be prepared to pay a fee.

dunstonh

As a director you are exempt from auto enrollment until you have an employee. Once you have an employee, directors are taken into consideration as well. Now, you can opt out but you need to include yourself in the autoenrollment process when your time is due.

atush

Open a company pension and pay in for both of you. Pay from the company so as to save NICs and save corporation tax.

Use unbiased.co.uk to find an advisor to help you or ask your company acct if they know of a good one.