We have had a team researching AE for the past six months.
We are a group of companies all working under the same roof and comprise of an Accountancy practice, an IFA company and an Asset Management company so we are in the perfect position to offer a solution.
During our research, it was evident that you need to be ready, whether you are employers or Accountants. I think there are going to be a lot of employers who will leave everything to the last minute and who are going to need a lot of help with AE.
Once everything is set up, with the right software, it is relatively easy and I do think that there is an element of scaremongering going on, however, I do not think that there is enough information readily available for employers. We have spoken to numerous employers who had no idea what was going on.
We have been told by various bodies (Accountancy and IFA) that unless we have the required accreditation we cannot give advice and it is only our qualified IFA's that are in the position to offer pension advice.
I would be very cautious about giving any pension advice at all. Interestingly, IFA's are not allowed to give advice on payroll systems which us Accountants are.
I do not think that the AE was very well set up at all. Accountants and IFA's now need to be working together with the employers and the employers ultimately carry the cost of this new regulation while most of us are scratching our heads wondering how we can make this work........
I think the next few years are going to be very interesting.
It certainly is a different point. I was led to believe that you did need to be employed in order to receive a company pension. I now know different and it is posts like this that increase our knowledge so effectively. I have now made sufficient notes on this subject and will be better prepared next time this crops up.
Thank you, I have recently come across a very similar situation. We concluded that even though a company is allowed and there is no legal implications, some remunerations of directors are not allowed as a business expense thus not making the savings on the CT. HMRC consider the overall remuneration package of the directors and in some cases of "a large leap of remuneration it would indicate to HMRC that the contributions were a diversion of income made to achieve a fiscal purpose and were not paid wholly and exclusively for the purpose of the business" and therefore not an allowable expense.
There may be implications that the OP should be aware of before making this decision.
I must admit, this is another subject where it is not easy to come to a satisfactory conclusion. A case of the more you read into it, the more complicated it becomes.
I would of been surprised if I went for an Accounting role whether in a practice or within industry if I was not asked what my accounting qualification were. !!!!!!!
I dont think it was discrimination I think they simply wanted to fit the right person to the right role.
I moved employers to get a variety of experience nothing to do with qualifications.
My answers
Rollback
I think that you would need to rollback the month and process it again.
For the purposes of the P45 and the RTI, the figures need to be correct for both the employee and HMRC.
Business Rates
Just a thought but it may be worth a bit of research into how this would affect business rates if at all.
Trust deeds
You will need to get a copy of the trust deeds so that you can gather all the information that you need for now and for any future events.
AE Solution
We have had a team researching AE for the past six months.
We are a group of companies all working under the same roof and comprise of an Accountancy practice, an IFA company and an Asset Management company so we are in the perfect position to offer a solution.
During our research, it was evident that you need to be ready, whether you are employers or Accountants. I think there are going to be a lot of employers who will leave everything to the last minute and who are going to need a lot of help with AE.
Once everything is set up, with the right software, it is relatively easy and I do think that there is an element of scaremongering going on, however, I do not think that there is enough information readily available for employers. We have spoken to numerous employers who had no idea what was going on.
We have been told by various bodies (Accountancy and IFA) that unless we have the required accreditation we cannot give advice and it is only our qualified IFA's that are in the position to offer pension advice.
I would be very cautious about giving any pension advice at all. Interestingly, IFA's are not allowed to give advice on payroll systems which us Accountants are.
I do not think that the AE was very well set up at all. Accountants and IFA's now need to be working together with the employers and the employers ultimately carry the cost of this new regulation while most of us are scratching our heads wondering how we can make this work........
I think the next few years are going to be very interesting.
Clarification
Of course, perfect sense (obviously meaning your reply not my posts).
Every day is a school day.......................
Indeed
It certainly is a different point. I was led to believe that you did need to be employed in order to receive a company pension. I now know different and it is posts like this that increase our knowledge so effectively. I have now made sufficient notes on this subject and will be better prepared next time this crops up.
Thank you
Tax implications
Thank you, I have recently come across a very similar situation. We concluded that even though a company is allowed and there is no legal implications, some remunerations of directors are not allowed as a business expense thus not making the savings on the CT. HMRC consider the overall remuneration package of the directors and in some cases of "a large leap of remuneration it would indicate to HMRC that the contributions were a diversion of income made to achieve a fiscal purpose and were not paid wholly and exclusively for the purpose of the business" and therefore not an allowable expense.
There may be implications that the OP should be aware of before making this decision.
I must admit, this is another subject where it is not easy to come to a satisfactory conclusion. A case of the more you read into it, the more complicated it becomes.
Not sure
I was under the impression that you had to be in reciept of employment income from the company in order to receive a company pension contribution?
Nutter alert
I say no more........................................
Surprised
I would of been surprised if I went for an Accounting role whether in a practice or within industry if I was not asked what my accounting qualification were. !!!!!!!
I dont think it was discrimination I think they simply wanted to fit the right person to the right role.
I moved employers to get a variety of experience nothing to do with qualifications.