Toni Hunter's SuperBlog

If you do not currently offer your employees a company pension scheme then you need to take heed of a new scheme announced by the coalition Government.

All employers

From October 2012, all employers, no matter how small, will have to enrol staff in the National Employment Savings Trust (NEST), unless they already offer a comparable pension scheme to their employees.

NEST

NEST is a scheme designed to give people more access to good quality pension savings, especially for those on low to middle incomes. The Government hopes that this will prompt people to start saving for their retirement, particularly with people now living longer with little or no savings.

Phased implementation

Each employer will be given a date from when the changes must be in place. The reform will be phased in over a four-year period to 2016, starting with larger firms and then working down through medium and then small and micro-employers. The size of an employer will be based on PAYE data.

A minimum contribution level will also be phased in gradually, with employers eventually contributing at least 3% of qualifying earnings by October 2017.

Eligibility

To be eligible for enrolment, staff must work in the UK, be at least 22 and under state pension age and not already be in a suitable pension scheme. They will have to earn at least £7,475 a year, which will be the threshold for paying income tax from April 2011.

Transferable and may be used by multiple-employers

Friendly, approachable, reliable professionals

The advantage of NEST is that it can travel with a person from job to job, with more than one employer being able to contribute to a member’s retirement savings pot at the same time.

If you are an employer or considering employing someone, then George Hay can advise on a wide range of pension and tax issues to help ensure you are fully prepared for the changes.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

How good are your I.T. skills?

If you have not yet completed your Tax Return for the year ended 5 April 2010 they may need to be fairly good as HM Revenue and Customs  are encouraging taxpayers to file online.  If you continue to use paper Returns, the usual 31 January timeline is substantially reduced to 31 October 2010.

Not filed your Tax Return online before?

If you have not filed Tax Returns online in previous years, you will need to register with HM Revenue and Customs beforehand.  As this will take at least a week to process immediate action is required to meet the fast approaching deadline.

You will need to visit the website of HM Revenue and Customs on www.hmrc.gov.uk and select ‘Self assessment’ from ‘Do it online’. This will guide you through the process of creating a user name and password.

You will also need to have some personal details, including your Unique Tax Reference and National Insurance number or Post Code to hand.

Once you have done this you will be sent a personal activation Pin through the post, from the Government Gateway. With this you should be able to complete the registration process and to be able to file the Return online.

Need assistance?

Most people find the filing process relatively straightforward and there is help available on the website itself. There is also an online demonstrator showing how the service works and provides various specific examples. To see this go to www.hmrc.gov.uk/demo

Watch out: Not everyone is able to file online…

It must be pointed out that there are a few people who will not be able to use the online service due to some of the supplementary pages not being available on the internet site and, of course, if you do not have access to the internet you also have the problem of what you should do. The only answer is to contact ourselves as soon as possible and we will do our best to submit your Return in time.

Time

As emphasised above, for everyone who still has a Tax Return outstanding, the problem is time.  Can you do everything in time and stay focused on your business?

Why not contact George Hay Chartered Accountants for peace of mind?

Disclaimer: This article is for general guidance only.  All taxation planning should only be undertaken after appropriate professional advice.  George Hay Chartered Accountants are registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.