Smart Pensions
An employer and the employee can together make significant savings by enrolling in a smart pension scheme. A new pension scheme can be set up and involve a salary sacrifice or the existing pension scheme, an employee is already enrolled in, is stopped and the new smart pension scheme takes over.
There are big savings to be made in National Insurance contributions. The UK Government legislated that pension schemes like this can reduce NI contributions significantly. Moreover, the NI contributions are not the only way an employee can benefit here: tax relief on the amount of income is reduced substantially too.
Savings for Employees Paying the Higher Rate of Tax
Employees who pay the higher rate of tax will feel the benefits right away. This benefit happens automatically and there is no need for the employee to make a claim through their tax returns or self-assessment forms to HMRC (Her Majesty’s Revenues and Customs) – something many overlook.
At Fair Care Employee Benefits a platform simply called Smart Pension, offers employees and employers a simple solution to managing the complex world of pensions. It is very easy to look online at the pension pot and all the results and figures associated with that individual.
At Fair Care Employee Benefits they will readily work with existing pension advisors to deliver the best possible benefits in this domain. Running a smart pensions scheme allows for employers and employees to save significant sums on National Insurance contributions and delivers a number of benefits to employees.
Since the law was amended to reflect a substantial change in the way pensions work, employees have been scouting around for the best plan. The law instructed employers to automatically opt employees into a pension scheme and those who did not wish for a pension plan must now opt out. Before this amendment to the law, employees had to opt in to a pension.
The Smart Pension scheme works in a very dynamic way. It is flexible and a tax-efficient way of contributing to an employee’s pension pot. It operates through the employee giving up some percentage of their salary, so that the amount sacrificed can be contributed instead to the pension fund.
All monies that are contributed to a pension fund make a lot more money by the time an employee retires, or gains access to the pension fund at the age of 55.
