Simple and aimed at smallest businesses
Simple solution for your client could be ditch the Sage AE module altogether.
£295 plus VAT one off fee gets a choice of pension provider and guaranteed acceptance (we set up everything). Ongoing assessment is via our on-line employer portal (safe and secure) which will deal with all comms, assessment, pension provider uploads and Dec of Com without the employer getting to involved at all. Also payroll agnostic so no issues dealing with any payrolls we have bumped into.... yet.
We can deal with clients anywhere in the country and will provide screen sharing training on using our systems within this cost. Monthly assessment via the portal costs start at £40pm plus VAT but as I say no need for the module which would have cost a minimum of £15-20 and you have to run it yourself.
Take a look at our website for more details www.lpaes.co.uk and message me if you need full details.
Happy to add to the 40-50 bureaux we already deal with, by the way, if anyone else is interested in finding out about working together with an AE specialist used to working with payrolls!!
Must have been a lucky guess!!
Good to see the whole thing is joined up and working well.
First lets be clear this is not Opting Out. Opting Out is another process altogether and is nothing to do with exemption. Sorry if that sound pedantic but I want to be sure we all know what we mean as Opting Out is much more complex, applies to employees who have been enrolled only and can lead to substantial fines if done incorrectly.
The first definition is the closest but as you are not necessarily asked by the regulator to choose anymore then a simple acknowledgement that you have no employees should suffice.
Exemption is entirely possible for companies with no employees or directors and office holders only such as Company Secretaries.
The definitions stated above by goldriver are a good example of this and Ishouldreallyknowthis is correct in that it take a short time to communicate this toe The Regulator when it is relevant.
It will always be the employers responsibility to confirm that they meet one of the set criteria and to inform The Regulator if there circumstances change in the future.
This part of the legislation is relatively simple and I would also agree with earlier comments that maybe its time to change AE adviser??
AE can be dealt with for less than £1,000 easily however face to face advice is more expensive.
Any service has different levels of complexity and therefore denotes a higher cost.
AE is complex and therefore many smaller employers/accountants might need additional support.
Seems like a business/risk decision to me.
Choice of three...
Small businesses have a choice of more than three providers who WILL accept them and that is my point.
The three you speak of are working in one way, They are all Master Trusts and by doing this you close off the route of the contract based schemes.
Many accountants are no more capable of telling the difference here than I am of running payroll...but I understand tax because of what I do for a living, I advise clients to seek tax advise from a qualified professional. I work with accountants and they charge my clients fees for their help/advise. It is entirely collaborative as I receive no benefits (financially) from this.
But I keep my clients and they value the referral.
On the topic of the forum...accountingweb started the no-one gets left behind campaign to help accountants. We amongst others support this campaign along with the Friends of AE. The thread asked a question about what other areas we should be considering in addition to charges, this is what I did. I also caveated this with the fact that my list was no exhaustive.
For chapter and verse in this topic I would suggest attendance at one of the many Friends of AE meetings regionally. There you will find some local support which will be willing to help. If you are based in the south west message me privately and I can direct you to your nearest meeting as I run the region for them....as does Rob Lovell ...with me....editor of accounting web
@NH and @ Locutus
NH....my analysis was aimed at pointing out that even by only choosing three of the many possible providers there are many differences that raise their heads.
PI providers are becoming increasingly concerned that businesses they insure are trying to dabble in this area and could potentially get it wrong. More storied of this nature turn up at our door every day when the accountant actually picks up the phone and asks whether they will be covered by providing pension scheme guidance....
Locutus....I agree however by choosing a pension provider who disadvantages some low paid employees against choosing a provider who does not you start to eliminate risk. We can never be risk free by by partnering with someone who will do this for you and your clients at a minimal cost you limit the chances of it coming back to bite you.
Advice does not need to be expensive but it does need to be provided by people who fully understand this market. There are many who do and they sometimes comment in these threads and mostly comment on LinkedIn from what I can see. Maybe the time has come to acknowledge that we need to all collaborate to make AE work rather than argue about who can do someone elses job after three hour homework (a comment from another thread) and helping clients to get it right??
Some banks seem to have thought it was....
AE won't be the issue, you are right the legislation is the same for all concerned. Choosing the wrong scheme because of its explicit mechanics may be an issue when we are 5-10 years on the other side of 2017.
All three have different ways of providing tax relief for members which means that some low paid employees will miss out on tax relief on their contributions if the wrong method/provider is chosenOne of the three will not accept transfers in from other pension providers and will not provider transfers from them to another provider.(currently)One of the three has an overall cap of approx one tenth of the normal current annual allowance on each members contributions every year which cannot be breached (currently).One of these three has a different approach to the way that tax is applied to death benefits if a member dies before vesting their funds.One of the three has only one investment fund for all members regardless of age, attitude or religion.One is run for profit whilst two are not.One one uses target dated investment funds tailored to a members specific state retirement age which means that benefits from this provider can be syncronised with the taking of any state pension available without any input form the member.
None of the above has anything to do with investment returns or charges but are nonetheless relevant to anyone who is selecting a scheme for themselves or for their clients. Employers are not responsible for investment performance but I believe some kind of "reason why I choose this one..." might be useful in years to come.... when said employee's dependents are trying to claim back the tax they may have suffered when the member dies unexpectedly. Maybe an ex employee will be trying to claim missed tax relief from the employer who chose a scheme which has disadvantaged them.
Once the phone stops ringing in a couple of years asking you whether you have claimed your PPI refund maybe the automated message will say something like.."Have you missed out on money from your employer/accountant who set up a pension scheme without realising you were disadvantaged"....or maybe I am listening to the wrong lawyers who are currently talking about exactly this area???
....run by Tata and funded by government money/loans.
Any recommendation that means an individual follows that course of action is advice. If a company implements a scheme as a result of a recommendation but teh individuals spoken to do not join then no advice issue.
Thsi is fine when you speak to Asda (for example) as it is unlikely that the directors of Asda will be in their AE scheme. However if you have a family run medium to small business this becomes more likely and then all of the questions about PI cover come into play!!