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Workplace Pensions, Impact On Small Employers

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There are adverts around on the radio now threatening nasties for small employers unless they have a workplace pension scheme in place. Even elderly and disabled people have been sent letters threatening fines.

http://www.bbc.co.uk/news/business-32935827

Personally, I have a jaundiced view of pensions schemes, they simply aren't worth the money. Once fees and costs have been taken, you're probably better off just salting the money away in a good deposit account (I know I would have been better off). At least you now it's there when the time comes, and after you die, it can be left to your heirs.

And what impact is this going to have on very small employers? If I employed just one person, I'd be tempted to fire them and suggest they can come back in as a zero-hours casual worker.

I suppose it's governments way of making sure most of our money goes right back into the hands of the city spivs. Really, just a tax, but dressed up differently.

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Yes my business is far too small for me to take on an employee, this kind of requirement makes it proportionally even further out of my reach.

And yes I agree with you that pension schemes are basically scams.

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There are adverts around on the radio now threatening nasties for small employers unless they have a workplace pension scheme in place. Even elderly and disabled people have been sent letters threatening fines.

http://www.bbc.co.uk/news/business-32935827

Personally, I have a jaundiced view of pensions schemes, they simply aren't worth the money. Once fees and costs have been taken, you're probably better off just salting the money away in a good deposit account (I know I would have been better off). At least you now it's there when the time comes, and after you die, it can be left to your heirs.

And what impact is this going to have on very small employers? If I employed just one person, I'd be tempted to fire them and suggest they can come back in as a zero-hours casual worker.

I suppose it's governments way of making sure most of our money goes right back into the hands of the city spivs. Really, just a tax, but dressed up differently.

As I understand it auto-enrolment can apply zero hours, casual workers and agency workers.

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It's all been around before with Stakeholder Pensions. In that case, employees could choose to join or not, and there was a fair bit of flexibility in tweaking it in a manner that put people off joining. Has taken the government this long to cotton on that employees will always opt for the max disposable to spunk away, in general, if the opportunity is there.

TBH employing anyone, and certainly any significant numbers, is such a monumental ballache that, if you're thinking about it, it's the least of your worries.

We have a fair bit done by Eastern Europeans where they take the work away with them, or have it dropped off somewhere, and they just submit an insanely cheap invoice and as it has a valid vat number so's fine (but obviously something isn't right compared to directly employing them so don't ask too many questions). As customer facing roles diminish, this sort of arrangement becomes increasingly viable in a bigger way.

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Alot of these small employers try and get you to go self employed to avoid these pension obligations (also passes on employers NI To the "self employed" employee)

This wheeze is everywhere now when you apply for job they will tell you they'd like you to go self employed within 12 weeks of starting and try and sell it to you by regaling you with tales of being able to offset work related expenses against your tax bill. Not worth it on low pay paying an accountant would wipe out any piecemeal expenses.

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Alot of these small employers try and get you to go self employed to avoid these pension obligations (also passes on employers NI To the "self employed" employee)

This wheeze is everywhere now when you apply for job they will tell you they'd like you to go self employed within 12 weeks of starting and try and sell it to you by regaling you with tales of being able to offset work related expenses against your tax bill. Not worth it on low pay paying an accountant would wipe out any piecemeal expenses.

According to a story about the Budget on one contractors' site, they're going to be looking hard at IR35.

Let's face it, if they're going to hack off employers by making them pay higher wages, they're not going to hold off going after disguised employment.

Anyway, the Government is going to have to do something about the self-employed and pensions. So many of the jobs created during the "recovery" have in fact been self-employment, and so many of the self-employed have low incomes and are therefore not going to voluntarily put money into pension schemes.

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According to a story about the Budget on one contractors' site, they're going to be looking hard at IR35.

Let's face it, if they're going to hack off employers by making them pay higher wages, they're not going to hold off going after disguised employment.

Anyway, the Government is going to have to do something about the self-employed and pensions. So many of the jobs created during the "recovery" have in fact been self-employment, and so many of the self-employed have low incomes and are therefore not going to voluntarily put money into pension schemes.

yes the self employed umbrella world are very worried

http://www.contractoruk.com/news/0012118osborne_four_fold_attack_contractors.html

Osborne has dotted the I's & crossed the T's in this area too

Edited by workingpoor

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