AUTO ENROLMENT
- Auto enrolment is a government initiative to help people save through a pension scheme, making it compulsory for employers to automatically enrol their eligible employees into a pension scheme.
- 1. Staging Date
- 2. Eligible employees
- 3. Calculating Employer contribution
- 4. Concept of a “waiting period”/deferment
- 5. Employer duties
- Provide Retirement benefits to all the employees i.e., eligible, non-eligible and entitled.
- Applies to company with at least 1 employee.
- Contribution is made by both employer and employee in specified fixed ratio.
- Employer gets the benefit of tax rebate on the pension amount.
- Pension amount cannot be used in any way by the directors/employers or the employees.
- No such loan or benefits exist.
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SSAS
- The SSAS (Small Self-Administered Pension Scheme) is one of the pension schemes with exclusive qualities that make it an affective financial planning tool.
- A great scheme for family business and small partnership companies. Main elements:-
- 1. A Trust with all members as trustees.
- 2. Sponsoring Employer.
- 3. One independent trustee.
- This scheme applies only to directors/ key staff and can be extend to their relatives irrespective of their employer.
- Number of members is limited to 12.
- Contribution is made by the member or the employer.
- There is whole set of tax benefits attached to this scheme. For example – no income tax, no capital gain tax, no corporation tax. All subject to conditions.
- The pension scheme allows you to borrow the 50% of SSAP fund.
- Enables director to buy their own business assets, lend money to their own business as well as others.
- Owners enjoy the SSAP loan back benefits.
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