Employers will need to automatically join employees who are earning over the “earnings trigger” (set at £10,000 for the 14/15 tax year) into a pension and for the first time, employers will be required to make minimum contributions on their behalf.
So what do employers need to be aware of:
When do you need to begin enrolling your employees into a qualifying scheme?
Which of your employees need to be enrolled?
Will your current employer scheme meet the criteria as a qualifying scheme?
Choose a qualifying scheme and default investment strategy.
Communicate with your employees to inform them what is happening.
Register with the Pensions Regulator and keep appropriate records.
What would happen if an important fee earner in your business suffered a critical illness or was to die? How would your business manage this?
Would important knowledge and management skills be lost?
Would your business lose profits, or important contracts?
Would your business be able to meet its loan obligations?
"We believe that our client’s business interests can create a legacy for their family, and protect the future of their business, should the worst happen."
If it was one of the shareholders who passed away, what effect would this have on the business?
Would the shareholders family become involved in the business, or would they wish to sell the shareholding?
What if the shares were sold to an external investor, resulting in remaining shareholders losing some control in running the company?
What if there were no interested investors, how would the deceased shareholder’s family get their value from the shares in the company?
Would it be better for the family and the remaining shareholders if the shares were sold to the remaining shareholders who would then be in control of the company and the family have a lump sum payment to help support them in the future?
Managing Spare Capital
Over the last few years corporate clients have found that their bank is offering them low interest rates on their capital reserves within their business. Since the beginning of 2013 when new regulations on financial advice were implemented by the FCA, many banks have closed their financial advice departments and clients cannot receive investment advice on how to manage the capital.
We have found a number of organisations that have suffered from the low interest rates and lack of available investment advice from banks:
Social Clubs and Societies
It is important to these organisations that they can invest their capital reserves at an appropriate level risk to generate return which can help them reinvest and grow the business, or put to good use in charities and social clubs.