The UK Automatic Enrolment Retirement Plan
In 2008, the UK initiated legislation that make possible an automatic enrolment retirement and pension programs for all eligible employees. Under the Pension Act of 2008, all employers are required to implement the scheme so that eligible employees will have sufficient money set aside to assist them when they retire.
It was determined that the population as a whole was not taking their retirement needs seriously enough to have adequate funds available when they retire. Given the fact that most people do live until retirement time, and the are tending to live much longer too.
No matter how large or how small, if a business employs anyone whether it is just one employee or thousands, they are required to participate in this act. The total required contribution is a minimum of 2% of wages in which the employer must contribute a minimum of at lease 1%.
The automatic enrolment factor makes the process more likely to create the desired results, as people are forced by the legislation to at least do something for themselves in this endeavor. The response from the public has been very favorable, especially from employees since the employer is kicking in at least 1% of their wages. Of course, the employer can contribute more than that amount if he or she wishes.
Employers were given staging dates starting, starting with April 1, 2012 when the time to start their plans began. This date was for existing employers, and those that are just going into business are given their staging dates accordingly.
Other duties include an accurate system for keeping records of who is participating among the employees, the percentages of contribution, the amounts contributed and the dates. This is to simply have a record so that if there are any problems or disputes that occur, the record can be referred to.
Employers are given PAYE reference numbers for the purpose of identification and ongoing ease of compliance. If an employer does not comply or does not participate in the plan, there are fines and penalties to ensure that it is done, and if that becomes an ongoing problem, the a court date is the answer.
The vast number of employers do want to do the right thing, and in most cases where there is no participation it is simply a matter of misunderstanding. The objective is to help employers work things out if they do not quite “get it” and to provide any assistance that is needed.
There is ample information of the government website along with a step-by-step walk through from beginning to end. This is a very well defined guide that anyone can follow in order to set up their scheme and come into compliance with the Act.
It is a comforting feeling for employees in knowing that there is a plan in place for them to systematically set aside money for their later years. Employees have a real advantage in the matter too, since there is employer money going into their account, it is especially attractive. Contact an accountant in Essex for more professional advice.
Accounting firms are increasingly becoming automated systems devoid of human appeal. For this reason, getting personalized and trustworthy accounting services is becoming more and more difficult by the day. However, using a local accounting service can help solve some of the problems associated with automated accounting services that are being offered by big accounting firms. If you are a business person, the advantages of using a local accounting service are quite many, and include the following:
By opting to use the services of a local accounting firm, you will be saving a lot of your time because the firm’s offices are located within a short distance from your business premises and you can speak to them face to face any time , if need be. In addition, should any accounting emergency arise, it is possible to visit the accountant and sort the matter out within a short period of time. You don’t have to rely on the telephone to explain your problem, and in addition, you may be required to visit the accountant’s office which may be far away from your business location. This could cost you a lot of your time.
Smaller accounting firms are known to offer more competitive rates for their services so that they can compete with larger accounting firms. Essentially, choosing a smaller local accounting firm for your business can help keep costs down.
Smaller accounting firms are associated with the ability to create personal relationships with their clients. This is because you are dealing a specific individual within the firm, meaning that you can easily form a personal relationship with him or her.
As a matter of fact, trusting you finances and other business-related information to strangers can be quite risky. Dealing with a local accountant is a better option when it comes to trust issues. A local accounting firm is well known within the community and because of this, you can know exactly know what to expect from the firm through recommendations and referrals from local business people. In this way, you can get a trustworthy firm of accountants.
-Local Accountants are More Approachable
The ability to approach your accountant and establishing a friendly working relationship is very important. It is very essential to get along smoothly with your accountant because you can enjoy better services. In addition, a smaller local accounting service is more likely to work harder in order to keep a client when compared to a large accounting firm. This is because the effect of losing a single client may have a large impact on the business in case of a local accounting service. For this reason, a local accounting services will always try its best to offer better service to its clients.
For smaller businesses, the services of a local accounting service are more ideal when compared to the services offered by larger accounting firms. This is because local accounting services are more approachable and conveniently located. They also offer more personalized services and are also more trustworthy.
Raising capital for a business might look easy at times, but it’s not. That doesn’t mean it’s impossible, and it certainly is exciting. As an established business owner, you already have a leg up on the competition. You’re not a startup, as you’re looking to achieve growth for your business. Getting the capital to do so, however, can be a little tricky as mentioned. It’s in your approach, your strategies, your determination and of course your business model and plan.
The growth you have planned for your business has to make financial sense. It could be that you have an outstanding idea in some ways, but it has to be the right time and the right thing for your company. It can actually help to get insight from other investors to see what they think. What they say could help solidify your plan to move forward, or you could start rethinking things before you even begin to court other investors.
Your business goals are going to need to be very clear. Check yourself, and if you see problems, you can be rest assured that potential investors are also going to have some issues. Iron out all those kinks before you decide to move forward courting investors for capital. Do you know yet how much you’re going to ask for? You might need a grand total of a certain amount, but you can also pitch other amounts to individual investors to make them more comfortable.
Of course, you want to be honest about your plan and the cumulative amount you need to move forward with your plan. As you came up with the dollar amount you need, you certainly planned out where the money is going. However, you need to have done so meticulously when talking with investors. You need to know how you plan to allocate every penny, and it needs to be made clear.
Throughout the entire process, you might want a broker, adviser and a legal team. These are just some things to think about. There are different stages when it comes to the process for raising that capital to grow your business. You want to be prepared every step of the way.
You’re going to have to think about presentation, and you’re going to have to be prepared to deal with feedback from investors. What are the terms going to be if they do decide to help you out? You’re going to have to make a decision based on what you hear, and it would be nice if you hear from First Avenue Partners Placement Agent investors about the growth potential for your company.