Pensions and auto enrollment

[the_d_o_t]

Hi guys
I've just started looking into this pension auto enrolment, like most have ignored it but looks like its a thing now as the letters are turning red with the words urgent on them now i best do something
i have two lads working for me and no a clue where to start.

i have herd that employees can opt out of it if they wish, is this true?

just thought i would see how some of you guys are going about it as cant find any other thread on here about it

 

[ShaunCorbs]

our lot got the accountant to sort it out but yes you can opt out but they need to have a private one / pay into one

 

[Chalked]

I’ve just had to do it.
For my employee and me.
You have to register with a provider by law. This cost £100 for accountant to administer. Both of us then opted out as he doesn’t want to pay in and I have my own.

 

[turnpin]

I’ve just had to do it.
For my employee and me.
You have to register with a provider by law. This cost £100 for accountant to administer. Both of us then opted out as he doesn’t want to pay in and I have my own.

so basically it's cost you 100 notes plus accountant fee for you and your employee to opt out with no benefit to either of you and the government is a quids in .....seems like a plan no doubt will be used to give a non payer a pension at your expense ...and the government come out in a good light at the tax payers expense ....you couldn't make it up ....lol regards Turnpin

 

[Murdoch]

Anyone who is an employee, and is offered a pension is daft not to join ....... Yes you contribute, but so does your employer and so does the tax man ....

 

[Chalked]

so basically it's cost you 100 notes plus accountant fee for you and your employee to opt out with no benefit to either of you and the government is a quids in ...seems like a plan no doubt will be used to give a non payer a pension at your expense ...and the government come out in a good light at the tax payers expense ..you couldn't make it up ..lol regards Turnpin

Right on all accounts.
It was going to cost £30 a month to administer!
The perks at there for an employee, ie you put in in tax free and the employer puts a percentage in too. But as an employer, pension payments were taken off th company national insurance contributions. So no real nett cost.
That isn’t so now, it’s just another tax and costs me.
I understand we all need to save though.

 

[the_d_o_t]

its all good and well for the employee but as a small business this just isn't possible, we do not have massive revenue coming in every week and this is all extra strain and pressure leading to not being able to afford to employ.

 

[Sid Viscous]

I'm a sole trader & could do with taking a lad on but quite frankly all this botox puts me right off the idea! It's almost as if the government don't want the little people to expand & create work for others by making it ridiculously complicated.

 

[the_d_o_t]

Reading more into this have you seen the stories related to plumbing and heating buisnesses that have had pension schemes come back to bite them causing them to loose everything under something called the section 75 debt

from my understanding
apparently you are also responsible for other companies liabilities that are involved in the scheme and if they go into liquidation then the "pot" is liable to claw back the money from you.

some guy who is retired just go a £80 k bill through the post in this link:
Sinking into debt: Plumbing businesses face ruin over pension scheme liabilities

 

[Murdoch]

Reading more into this have you seen the stories related to plumbing and heating buisnesses that have had pension schemes come back to bite them causing them to loose everything under something called the section 75 debt

from my understanding
apparently you are also responsible for other companies liabilities that are involved in the scheme and if they go into liquidation then the "pot" is liable to claw back the money from you.

some guy who is retired just go a £80 k bill through the post in this link:
Sinking into debt: Plumbing businesses face ruin over pension scheme liabilities

The above is truely horrifying ..... and because its a defined benefit scheme its worse.

Its my understanding that the auto enrolement schemes are "money" purchase and therefore do hot have this risk..........

Anyone providing such a scheme must consult a IFA for advice... rather than relying on "internet" advice.....