26 finance
Do you know your new pension responsibilities?
By law from October 2012, employers must enrol eligible jobholders into the Government‘s National Employment Savings Trust (NEST) or a similar workplace pension scheme that satisfies the qualifying pension scheme rules and make contributions for that individual
Any eligible UK jobholder aged between 22 and state pension age, not already in a qualifying scheme and with annual earnings above £8,105 (2012/13 tax year) must be enrolled within three months of being eligible. Jobholders can choose to opt out of the pension scheme only after enrolment, if they so choose. Any jobholder who elects to opt-out must be re- enrolled every three years.
It is likely that almost every employer in the UK will be affected, starting with the largest firms first. By 2017, even the smallest employer must have addressed their auto-enrolment obligations.
Total minimum contribution levels will be phased in over several years until 2018 by when all schemes must have reached a total of 8% of band earnings. A minimum of 3% must be paid by the employer, although they could choose to contribute more.
Action needed - Provide a certified
qualifying pension scheme for your employees
- Automatically enrol all eligible jobholders into the scheme and maintain accurate records
- Pay employer contributions for eligible jobholders to the scheme
- Inform all eligible jobholders that they have been enrolled and they have the right to opt out
- Register with The Pensions Regulator and provide details of your scheme and its members.
www.businessmag.co.uk
Index shows drop in business confidence
Optimism among UK businesses has fallen to a 20-year low, hitting depths not seen since comparable data began in 1992, according to the latest Business Trends report from accountants and business advisers BDO, based at Ocean Village, Southampton.
James Alesbury, payroll and HR manager
Things to avoid
- You must not encourage your workers to opt out of the qualifying pension scheme
- You must not have recruitment procedures that benefit opt outs
- You must not treat an employee unfairly or disadvantage them because of auto-enrolment.
Although this legislation is being phased in over a number of years, employers will need to consider the financial implications in advance and plan how they will implement these changes within their business.
Not only will there be an employer pension contribution but consideration must be given to the set up and running costs of any new or existing schemes and also the administration involved to comply with auto enrolment legislation.
We strongly recommend that all businesses review how this affects them. Start by identifying the staging date and familiarise yourself with the requirements in order to plan a successful transition.
Details: www.hwb-accountants. com/services/useful-payroll-
links.htm
BDO‘s Optimism Index, which predicts business performance two quarters ahead, suggests the economy will continue to contract at the start of 2013. The index fell to 89.1 in August from 93.1 in July. This is the sixth consecutive month that the data has registered a drop, with a four-point plunge from 93.1 in July. Business confidence is now at its lowest level since the Business Trends‘ indices began in 1992, and significantly below the crucial 95 mark which would indicate a return to growth.
BDO‘s Output Index, which predicts short-run turnover expectations, has also fallen sharply to 90.8 in
August from 93.9 in July, reaching its lowest point for 40 months. This drop neutralises hopes of recovery in the short-term. This is crystalised by data from the UK‘s all important service sector – which makes up more than three-quarters of the UK‘s economy – which registered a steep drop to 92.2 in August from 95.1 in July.
Mirroring the decline in the Optimism and Output indices, BDO‘s Employment Index fell to 92.1 in August. With the private sector unlikely to absorb further forthcoming public sector job cuts, conditions for UK job seekers are unlikely to improve before the end of the year.
Malcolm Thixton, lead partner, BDO Southampton, said: “The sluggish economic environment continues to elicit zigzagging business sentiment, with confidence now at its lowest level since Business Trends began nearly 20 years ago.
Waterlooville businesses win backing from Santander
Hi-Tech Mouldings, the Waterlooville-based manufacturer of technical mouldings and assemblies, is set to continue its expansion programme after securing a new £110,000 asset finance deal from Santander Corporate Banking.
The company, which also has a site in Slovakia, undertakes specialist processing of engineering polymers as well as the manufacturing of complex sub-assemblies and injection moulding components. The funding will be used to purchase a new injection moulding machine, allowing the business to continue to expand and match customer demand.
Gary Moore, director of Hi-Tech Mouldings, said: “From the outset, the team at Santander demonstrated a thorough understanding of our businesses to find us the right finance package to meet our needs. “
Gareth Burger, regional director for Santander Corporate Banking, said: “Hi-Tech is an excellent local business which continues to grow and set strong, positive targets“.
In another vote of support in the form of backing from Santander Corporate Banking, husband and wife team Andrew and Jacqui Shaw have bought the Costcutter convenience store at Clanfield, near Waterlooville, a business they have been running for almost 25 years.
The Shaws have a strong background in retail and jumped at the opportunity to buy the business. They took on Costcutter Clanfield in 1988, and will remain actively involved in the day-to-day management of the business, sharing the staffing and administration tasks.
Jacqui Shaw said: “This ensures we will be able to maintain an important service for the village and has enabled us to secure our business for the future and our children. The team at Santander has been instrumental in helping us realise this dream.“
Added Jacqui Gregory, regional director for Santander Corporate Banking: “The store is a great example of a well-run family business providing a valuable service to its local community.“
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – OCTOBER 2012
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