Workplace Pensions are here to stay

The Pension Regulator (TPR) is turning up the heat on Employers.

Employers must take action to put a qualifying registered Pension Scheme in place by the company’s ‘staging date’, otherwise compliance action will be taken.

In the last quarter of 2015, TPR have issued:

• 4818 Compliance Notices

• 224 Unpaid Contribution Notices

• 1594 Fixed Penalty Notices

• 31 Escalating Penalty Notices

In a report TPR said:

“In the next 12 months, more than 500,000 employers will go through Automatic Enrolment.  We expect to see a rise in the number of times we need to use our powers, so our message to employers remains clear: start getting your plans in place early or you risk being fined.”

If you need assistance in setting up an Auto Enrolment compliant scheme, Ward Williams Financial Services Ltd are able to assist.  Please contact us on 01932 830664 or wwfs@wardwilliams.co.uk.

The third Budget in 12 months

This Budget looked as if it would be a difficult one for the Chancellor, faced as he was with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. What was to have been the big announcement – reform of pensions – was kicked into the long grass a few weeks ago. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions.

How will this Budget affect you? If you are – or want to be – a saver, then there is plenty to consider. From April 2017 a new ISA, the Lifetime ISA, will be launched for the under-40s. It looks as if it is a close relation of the recently abandoned pensions ISA. Also from 2017/18, the normal ISA contribution limit – unchanged for 2016/17 – will rise to £20,000.

Capital gains tax (CGT) rates will fall from 2016/17 to 20% and 10%, although the current rates of 28% and 18% will continue to apply to residential property (another buy-to-let attack) and carried interests. There will be a new entrepreneurs’ relief (effectively 10% CGT) for external long term investors in unlisted companies.

Other important changes for included:

·   Increases in the personal allowance for 2017/18 to £11,500 and the higher rate threshold to £45,000.

·   A restructuring of stamp duty land tax (SDLT) on commercial properties. 

·   A major revamp of business rates, permanently doubling the Small Business Rate Relief.

If you would like to discuss any of the issues raised in the Spring Budget please do not hesitate to contact the team at Ward Williams Financial Services Ltd on 01932 830664 or by email on wwfs@wardwilliams.co.uk.