Accountants, Bookkeepers & Payroll
As a result of the workplace pensions and Auto Enrolment regulations, accountants are the front line for employers to go to for help with these new regulations now, and over the next few years. Some of your customers may have even asked you what the new regulations are all about?
Indeed talking to my own accountant and a many others this year, it’s true to say the government campaigns raising awareness of Workplace Pensions are beginning to take hold.
Do you know what your response to the questions from your clients about Workplace Pensions will be?
As in all cases it would be nice to have all the answers but in reality it’s just not possible. If I get asked a question on tax I refer it to an accountant. If I get asked a question on wills and trusts then I would point my client to a solicitor. I don’t believe, based on the research I’ve done, many accountants want to read the 250 pages of legislation, help their clients implement a workplace pension and then maintain it. What they want is for someone else to deal with this problem for them.
Find an alternative solution
Anytime you rely on another person or firm though, you first have to know and trust them. You must be satisfied they’ll provide a service which will strengthen your relationship with your client and is delivered professionally and priced correctly.
There’s also the question of timing. If the companies you look after have less than 30 people it’s likely they’ll not need to start their scheme until 2016 or 2017. I’ve heard many companies talk about dealing with the new regulation when they have to. I truly believe this will be one of the biggest mistakes they can make. The tidal wave of employers who will need to comply at the same time will create a real bottle neck of advice that will be incredibly difficult, if at all possible to deliver on. If, however, employers act now they can plan for the future and avoid the logistical nightmare and subsequent fines for not complying.
The issues for not acting now
The problem has been that complying with the new regulations is assumed to be too costly for many and the company owners and their accountants aren’t really sure what’s expected of them.
At WorkpIace Pensions Online we’ve already carefully considered and researched the issues, and I’m happy to meet with you and discuss how we provide a practical, value for money approach to help your clients implement their pension scheme.
We already have several schemes on board. They’ve signed up because we get them to a point where they are ready to start their scheme well in advance of their staging date. Contributions don’t begin before their “staging date” but they know everything is ready to go, they have somebody to guide them and as a company they can budget for this implementation in advance.
For an accountant I believe this is a great way of answering the inevitable questions that will occur over the next few years. Get in touch we’d love to help you with your Workplace Pensions headache.
If you are reading this you will no doubt be a financial adviser that has several clients needing to provide a pension for their employees over the next few years. Some of your customers may have even asked you what the new regulations are all about?
I would suggest that all financial advisers have known about auto-enrolment for several years and have decided for themselves whether or not they would like to get involved or not. Again I would say that traditionally advisers have really only been concerned about the larger directors pension funds or managing larger companies with significant contributions. You earned a good initial commission and continue to take good income with recurring income. When it comes to looking after the smaller companies then there is little reward so why bother? That is the view that based on my straw poll 80% of advisers have come to and if that’s your business model then good luck to you.
However what is true is that your directors will be the bosses of micro companies wanting a workplace pension in the next few years and will be looking to you for help,
So when your clients ask, what will be your response to their questions?
The key thing here I believe is to actually have an answer. If you do not then your client will go somewhere else. He will engage them to implement a scheme. Your client may just be impressed enough to let the newcomer transfer his big pension pot somewhere else. Not only have you lost the trail income, you might just lose the client. My advice would be go and find a friendly workplace pension specialist to look after your schemes, and sign an agreement to ensure you retain existing arrangements.
However before recommending anybody you must be satisfied that they will provide a service which will strengthen your relationship with your client because the service is professional and priced correctly.
There is also a question of timing. If the companies you look after have less than 50 people it’s likely that they will not need to start their scheme until 2016 or 2017. I have heard many companies say that they will deal with it when they have to. I truly believe this will be one of the biggest mistakes they can take. If they could find out now, a company can plan for the future.
The problem has been that it is assumed it would cost too much and the company owners and their accountants do not really know what’s expected of them.
I am happy to meet with you and discuss how we provide a practical, value for money approach to help your clients implement their pension scheme.
We already have several schemes on board. They have signed up because the offer is as follows. We get them to a point where they are ready to start their scheme. They actually start on their “staging date” but they know that everything is ready to go, they have somebody to help and they can budget for this implementation.
For a financial I believe this is a great way of answering the inevitable questions that will occur over the next few years,
For more information call us on: 0121 636 0939