Pension rules changed and in 2012 a new Pension Act came into play requiring all UK employees to be automatically be enrolled into their employers’ pension scheme unless they are already members. Under the Act employers have to contribute 3%, employees pay in 4% of their salary and 1% tax relief is also given.
The Government is also introducing a new system of pensions savings accounts called the National Savings Pension Scheme (NSPS) or ‘Personal Accounts’ .
This is a basic, inexpensive pension plan that employers can use, unless they already have their own scheme which is more favourable.
It’s a confusing time for many small and medium sized business already struggling with changing red tape but KM Financial Solutions LLP can help you find the most efficient way to comply to new pension rules.