Employee & Director Pensions

The law requires you to provide your employees with a workplace pension. Depending on the way your scheme is administered, as a business you can benefit from substantial savings.

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Ensuring your workplace pension is fit for purpose

By law, all businesses are required to provide their employees with a workplace pension as well as make employer contributions to that pension. Though as with everything, there are numerous ways in which this can be set up.

If you are just starting your journey to setting up your first employee pension we are well placed to support you to condense the complex world of workplace pension schemes.

Already have a pension scheme set up? Depending on how your scheme is currently administered you may benefit from substantial savings when moving to a salary sacrifice scheme instead.

Let us help you navigate the process of ensuring your business pension scheme is efficient and fit for purpose.

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How we can help

Assessing your current workplace pension scheme to ensure it complies with legislation and the companies goals.

Fully managing the administration, contracts and process of setting up your scheme.

Sourcing the most suitable and cost efficient schemes.

Conducting employee seminars to connect with staff members and support financial wellbeing.

Supporting you to understand whether moving to a salary sacrifice scheme would provide substantial savings.

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What is salary sacrifice?

Looking for a way to cut your workplace pension costs? Why not explore and save money with salary sacrifice?

Salary sacrifice (also known as a salary exchange scheme) is an HMRC-approved scheme which lets your business save money whilst also helping your staff too.

Employees give up part of their salary in return for extra non-cash benefits from their employer. As the employer, you save money because you do not pay National Insurance on the money that’s no longer paid as salary. Your employees have a lower salary but the same overall pension contributions (employer, employee and HMRC).

As well as receiving pension contributions in return for a lower salary, your employees will also pay less tax and National Insurance because of the salary they’ve given up. So it’s a tax-efficient way for people to save for their pension and potentially increase their net pay.

Director pension contributions

As a director, when topping up your pension you’ve got the option of making company contributions. These can have many tax advantages over personal contributions as long as you stay within HMRC rules.

Making tax-efficient pension contributions directly from your company can be an efficient way of moving money outside of your business without requiring to pay any tax.

We are well placed to help you navigate these guidelines and ensure that you are maximising your contributions.

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Why choose Vision?

We are completely independent so can access the whole of the market

We don’t baffle you with jargon. We prefer to be straightforward and upfront

We’re a boutique family firm – you only deal with a small team dedicated to you

We provide a completely free initial pension planningreview

We’re flexible and provide options for meetings face to face, via phone or virtual

Direct access to your personal advisor

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It only takes a few seconds to send us your details. Book a free employee pension review.

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FAQs

Get help with the most common questions our team of independent financial advisers get asked.

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What are the benefits of a workplace pension review?

A workplace pension review with an independent financial adviser will give you a professional view of your current provider and ensure you are meeting current legislation.

Your advisor can also find out what other options are available to you from different providers. This lets you compare the different services and how much these would cost your employees.

An external benchmark of your pension scheme can help you improve your confidence in how it’s run. Or if it doesn’t meet your expectations, you’ll receive recommendations about alternative schemes in line with your company’s goals.

Workplace pension contributions can be an important factor in retaining and recruiting your employees.

Who benefits from a salary sacrifice pension scheme?

A salary sacrifice scheme can be beneficial to both your staff and your business.

The scheme works by allowing your employee to give up a proportion of their salary in exchange for a non-cash benefit, such as increased employer contributions to their pension scheme.

As this money is taken out of the employee’s pre-tax pay, then it is beneficial to them as they don’t pay National Insurance Contributions (NIC) or tax on the proportion of the pay that is sacrificed.

Your company can also benefit from this arrangement as you, the employer, won’t have to pay the NIC on the salary that has been exchanged, so saving your business money and benefitting both parties.

What Makes Limited Company Pension Contributions More Tax Efficient?

The key difference between a limited company and personal pension contributions is that contributions from your company may be allowable business expense. As a result, these payments could reduce your company’s liability for Corporation Tax.

In addition, the relevant earnings threshold does not apply to company contributions. This means you can sometimes make larger pension contributions directly from your company than you could do personally. The income you take from your company, in salary and dividends, is not affected.

How much money can my business save with salary sacrifice?

The savings you can make will depend on the earnings of your employees and the number of employees who join the scheme. The more employees you have who take part in the scheme, the greater the savings for the company.

For example, if 50 employees, each earning £30,000, take part in salary sacrifice, this becomes an annual saving for the business of approximately £8,200.

Call us today, and we can provide you with an outline of the savings you can make.

Looking for honest employee pension advice?

Meet your adviser

We start by meeting with you and assessing your workplace pension scheme. Namely does it comply with legislation and meeting your companies goals?

Plan

Using this information we source from the entire market to find the most suitable and cost efficient scheme that can allow for salary sacrifice.

Relax

Once agreed we handle everything – from providing employee wellbeing seminars, overseeing contract changes and managing the switch to the new contracts.

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