News & Events

Reading Time | < 1 min 17 May 2016

Millions missing out on auto-enrolment

Around 4.8 million employed people are still ineligible for auto-enrolment and are not saving into a pension scheme, according to the Work and Pensions Select Committee (WPSC).

The WPSC’s report on auto-enrolment says that currently a quarter of the workforce are still excluded from auto-enrolment with the main reason being low pay. The committee warns that the levels of pension savings in this group (which is disproportionally made up of women, the disabled and minority ethnic) is likely to be low.

9 million people will be saving more into a pension due to the auto-enrolment scheme.

In contrast, the number of self-employed people saving into a pension has fallen, despite self-employment being at an all-time high. Individuals actively saving towards their retirement fell from 1.1 million to 0.5 million between 2001/2002 and 2012/2013.

The WPSC has put forward the lifetime ISA introduced in the March Budget 2016 as a viable option for individuals to secure their pension pots.

Lifetime ISAs are available for those aged under 40 from April 2017. Individuals can save up to £4,000 per year, on top of receiving a 25% government bonus. Savings can be withdrawn at any time to purchase a first home.

The Department of Work and Pensions (DWP) has however said that the lifetime ISA “could easily give many people the impression that it attracts a more favourable tax treatment than pension contributions.”

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Reading Time | < 1 min 16 May 2016

Boost in employee numbers for small businesses

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Research has found that smaller businesses are taking on more staff.

According to the government’s Small Business Survey of 15,000 SMEs, 24% of employers had more people working for them in 2015 than in 2014.

Only 1 in 10 reported a reduction in staff, down from 21% in 2010.

The survey also found that 95% of employers use the internet in the workplace, 76% have their own website and 55% actively use social media.

Further findings include:

81% of SMEs that applied for finance secured all or some of what they asked for
bank overdrafts were the most common type of finance
5% of finance was made up of peer-to-peer lending
30% of employers continue to have issues with late payments
SMEs are 3% more likely to report higher turnover than last year.

Small business minister Anna Soubry, said:

“This survey shines a light on the small businesses that drive our economy and employ millions of people across the country - and it’s good news that small firms continue to employ more people.”

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Reading Time | < 1 min 13 May 2016

Increased demand for new state pension statements

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The number of individuals accessing their new state pension statements has increased by 40% in the last 6 months, according to the Department for Work and Pensions (DWP).

This is an increase from last year where there were 400,000 requests made.

People over the age of 18 can access their state pension information through an online checking service. This provides an estimate of how much a person may receive when they reach state pension age based on their national insurance contributions.

The online service was launched on 12 February 2016 and since then it has received 300,000 unique visits.

Individuals aged 50 or over can use the service online or request a paper statement from DWP.

Pensions minister Baroness Ros Altmann, said:

“Once you understand how much state pension you might receive, you will be better able to plan your later life income.

“Through our pensions reforms we want to create a better culture of saving which is why we have introduced automatic enrolment that will help people supplement their state pension and we are providing more opportunities to save for retirement.”

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Reading Time | < 1 min 12 May 2016

Latest Auto Enrolment compliance figures

Reading Time • < 1 minThe Pensions Regulator has released its latest compliance and enforcement report for the period 1st January 2016 to 31st March...

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Reading Time | < 1 min 12 May 2016

Capital gains tax changes could encourage business investment

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Changes to capital gains tax (CGT) and entrepreneurs' relief may boost business investment, according to research by the Institute of Directors (IoD).

From April 2016, the rate of CGT was reduced from 28% to 20% for higher rate taxpayers and from 18% to 10% for basic rate taxpayers – this excludes certain residential property and carried interest.

The IoD asked 1,224 members whether the cut in CGT and extended entrepreneurs’ relief for shareholders in unlisted companies would attract more investment for start-ups and fast-growing business.

24% agreed that the changes would be significantly attractive for their business, while 55% said it would be slightly more attractive.

Only 1% said that the changes would be unattractive for their business.

Stephen Herring, head of taxation at the IoD, said:

“The Chancellor rightly reformed taxes on capital gains at the Budget to encourage investment in the entrepreneurial firms that will create the innovative products of the future, and new jobs with them.

“Now the good work has been done, at future Budgets the government should consider whether reliefs targeted at entrepreneurial companies could bring more bang for the taxpayers’ buck.”

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Reading Time | < 1 min 11 May 2016

Rise in reports of work pregnancy and maternity discrimination

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New figures from Citizens Advice reveal a 25% rise in female workers seeking advice on pregnancy and maternity discrimination over the past 12 months.

During April 2015 and March 2016, the charity received enquiries from 2,000 people for help with pregnancy and maternity discrimination – up from 1,500 last year.

Expectant mothers have reported having their working hours reduced, being put onto zero-hours contracts or being pressured to return to work from maternity leave.

77% of mothers surveyed also reported a discriminatory experience at their workplace during pregnancy, maternity leave or returning from work.

Citizens Advice chief executive Gillian Guy said:

“People with a baby on the way will have a lot on their minds already. The last thing they need is a threat to their income or job security. All employers should respect and uphold the rights of staff who are new parents or expecting a baby.”

Citizen advice is advising new and expectant mothers to tell their employer about the pregnancy at least 15 weeks before your due date to ensure you receive maternity leave and pay during care, and to claim for your statutory maternity pay or maternity allowance.

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Reading Time | < 1 min 10 May 2016

Pensions tracing website launched

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The Pension Tracing Service has launched a new website to assist people in finding their lost pension savings.

The Department for Work and Pensions (DWP) announced that the new website and service will provide an easy way for people to trace hard-earned savings.

Individuals can enter their former employers’ details into an online database followed by contact details for pension schemes that they may have paid into.

The website for the new service can be found here.

DWP has currently estimated £400 million in unclaimed pension savings, including money people previously saved for retirement.

The pension tracing service is a free service available to everyone, enabling people to search the database of more than 320,000 pension scheme administrators.

Minister for Pensions, Baroness Ros Altmann said:

“People have had on average 11 jobs during their working life which can mean that have as many work place pensions to keep track of.

“The new DWP online Pension Tracing Service helps reunite people with their lost pensions, giving details of providers to help people track them down.”

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Reading Time | < 1 min 09 May 2016

Confirmation statement to replace annual return

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A new confirmation statement is due to replace the annual return from June 2016.

Companies will be required to provide information to the registrar at least once a year. This can be delivered as a confirmation statement.

Unlike annual returns, there are no set dates to submit a confirmation statement during the year. However, no more than 12 months can be passed from the original statement when submitted.

Companies will need to ‘check and confirm’ their information and inform Companies House if any changes would like to be made.

The differences between the confirmation statement and the annual return include:

where elections have been made to keep any legal registers at Companies House, a statement confirming all information on those registered will need to be submitted
where a company is exempt from keeping a PSC register, a statement is required of the fact that it is exempt, unless the information has not changed since it was last provided
a requirement to supply the information on a company’s PSC register, unless the company is exempt or has elected to keep its PSC register at Companies House.

All companies and limited liability partnerships (LLPS) must now keep a register of persons with significant control (PSC).

Companies are required to record the information of individuals with significant control on a PSC register and filed with Companies House from 30 June 2016.

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