Company Pensions as a Director to employees

sheepysheep60

I run a company currently employing 3 people.

1. I was wondering, do I legally have to offer pensions to staff?

[Last time I checked this information (as an employee) it wasn't necessary in companies of less than 10 people, but I have just read a couple of articles stating all companies of all sizes will have to pay this soon (article was dated 2010). I have a sensible accountant who manages my payslips and tax so I'm confident that I'm 'above board'!]

2. Is there a way my employees can voluntarily ask me to put money into a pension pre-tax? Or can I offer them any other benefits?

Overall, I'd like to offer them any benefits I can, but at the same time we are a tiny company so I don't have an excess of cash to dole out. I'd be interested in any government schemes or otherwise that can be mutually beneficial.

atush

http://www.thepensionsregulator.gov.uk/automatic-enrolment.aspx?campaign=087DWPemployers2014

click no3 to find your staging date.

In the mean time, as a director, have you set up your own executive company pension? Which you could pay yourself pension contributions, reduce your company Nics and corporation tax? It is a business expense.

xylophone

You might get some assistance here http://www.hl.co.uk/company-pensions/workplace-pensions-advice

http://www.theguardian.com/small-business-network/2014/jun/23/small-businesses-auto-enrolment-pensions might be worth a look.

mania112

Yep, you need to have a pension in place for 3 staff and this can be setup with pre-tax (salary sacrifice) contributions

atush

Which will save you employers nics (which some employers share with their employees as additional pension contribs).

Do you have an accountant?

AEGuru

sheepysheep60 wrote: »

I run a company currently employing 3 people.

1. I was wondering, do I legally have to offer pensions to staff?

[Last time I checked this information (as an employee) it wasn't necessary in companies of less than 10 people, but I have just read a couple of articles stating all companies of all sizes will have to pay this soon (article was dated 2010). I have a sensible accountant who manages my payslips and tax so I'm confident that I'm 'above board'!]

2. Is there a way my employees can voluntarily ask me to put money into a pension pre-tax? Or can I offer them any other benefits?

Overall, I'd like to offer them any benefits I can, but at the same time we are a tiny company so I don't have an excess of cash to dole out. I'd be interested in any government schemes or otherwise that can be mutually beneficial.

Hello,
I wouldn't worry too much about having to comply with any legislation yet. You will need to find out what your staging date is (the date the law applies to your company) by going to the link posted above.

You will be able to type in your PAYE reference on there and it will tell you what your staging date is. I think it will be around 2016/2017

In terms of finding a pension scheme for your workers, I would advise that you have a look on the ABI (Association of British insurers)

On here you will find some providers that are offering schemes for Automatic Enrolment so you will need to shop around and find the best one for you.

There are some schemes out there that take the pension conts before tax, or you could look at having a salary sacrifice scheme within your company that will reduce your NIC. Just remember that your employees don't have to request a specific scheme or provider. It is your choice as an employer.

I hope this helps.

AEGuru.