Pensions. Not exactly a topic that tends to excite most of us but it is important nevertheless! Most of us will now have had to automatically enrol our eligible employees but are you aware that the minimum contribution rate is due to increase in April?
What are the changes?
From April 2018, you will need to save a minimum of 5% into your employee’s pension fund. 3% of that comes from the employee which, of course, attracts tax relief. That still means that your contribution will double if you are currently paying 1%.
Depending on how you’ve set up your pension scheme, this tax relief could be automatically provided (via a salary sacrifice arrangement) or alternatively it needs to be claimed back from HMRC.
The attached article gives a useful overview but if you want further guidance, contact us at Cornerstone and we will help you make sense of the Pensions minefield!