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16 March 2023

Here are some of the highlights which may affect you:

Pensions

  • The Lifetime Allowance (the total amount of money you are allowed to have in your pension without having additional tax charges – which is currently just over £1m) the charge is being removed from 6 April 2023
  • However, the maximum amount of tax free cash you can take will be 25% of your fund value or the current LTA (whichever is the lower), so maximum is frozen at £268,275
  • The Annual Allowance (the maximum total contribution that can be paid in during the year) will be increased from £40,000 to £60,000 from 6 April 2023
  • Also, the Money Purchase Annual Allowance (potentially applicable if you’ve started taking pension income from a defined contribution pension) will be increased from £4,000 to £10,000

Changes for business

  • The main rate of corporation tax, paid by businesses with taxable profits over £250,000, is confirmed to increase from 19% to 25%
  • Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules
  • Apprenticeships for over 50s to attract a wealth of talent and ability back into the workplace
  • Enhanced Credit for R&D of £27 for every £100 spent

Inflation

  • And the last good news for today is the outlook for inflation. It is expected to be 2.9% by the end of 2023 compared to 10.1% at present.

We understand that the recent changes announced in the Budget may raise questions and concerns regarding the impact on your business.

We encourage you to reach out to our Corinthian Benefits team, who are readily available to provide guidance and support tailored to your specific needs.

10 March 2023

 Could you benefit from reviewing your arrangements? 

A recent survey of over 300 employers with over 3 million savers has highlighted some startling information of where employers and employees could be losing out. The statistics gathered include large employers and it is likely that for small to medium sized businesses, the numbers could be a larger concern. 

The report highlighted a number of issues which included the 4 below: 

1. 1 in 5 employers are not using salary exchange (sacrifice) 

2. 60% of employers are not monitoring the performance of their default fund 

3. 87% of employers are not completely confident they would pass the Pensions Regulator’s auto enrolment spot check 

4. Over 50% of employers have not reviewed scheme charges in the last 2 years 

1. Employers not using Salary Exchange (Sacrifice) 

The survey found that around 1 in 5 employers are not using salary exchange and are missing out on substantial tax savings. It also suggested that of the ones who are using it, many of them are not using it effectively. 

Salary Exchange can help increase an average UK employees take home pay by £15 per month, whilst saving the employer more than this for each employee. 

2. Employers not monitoring the workplace pension default fund 

Nearly 60% of employers stated that they hadn’t reviewed their default fund in the last 12 months and 25% said that have not done so in the last 3 years. 

Many business owners are not aware that new employees joining the company may be going into a different default fund compared to that of their longer serving colleagues and the fund make up and performances can be completely different. 

3. The Pensions Regulator Auto Enrolment Spot Check 

From January 2022 to June 2022 the Pensions Regulator issued approximately: 

  • 20,000 Compliance Notices 
  • 15,000 Fixed Penalty Notices 
  • 6,000 Escalating Penalty Notices 

In July 2022, with the easing of social distancing restrictions, the Pensions Regulator announced plans to increase its auto enrolment compliance inspections. 

The Pensions Regulator stated that its aim was ‘not to catch employers out’, but to ‘make sure employers become compliant’. Clearly it is good practice for employers to be aware of their auto enrolment compliance duties, rather than wait until they are caught out by the Pensions Regulator. 

4. Pension Scheme Charges 

Over half of the employers surveyed said that they had not reviewed the charges paid by the company, or their employees, in the last 2 years. 

With the changes in the pension arena over that last couple of years, many employers could find that they are able to secure lower charges for their pension scheme (meaning less money coming out of their employees retirement savings pots). 

Next Step If you feel that you haven’t had the time to review your workplace pension scheme for a number of years, or that you would like to benchmark your current processes, then please get in touch with us. What’s really interesting, is we will review this for you at no cost or obligation – so it won’t cost you a penny! 

Adam Gibbs

[email protected]

+44 7899 056 678

Could you benefit from reviewing your arrangements?

A recent survey of over 300 employers with over 3 million savers has highlighted some startling information of where employers and employees could be losing out. The statistics gathered include large employers and it is likely that for small to medium sized businesses, the numbers could be a larger concern.

The report highlighted a number of issues which included the 4 below:

  • 1 in 5 employers are not using salary exchange (sacrifice)
  • 60% of employers are not monitoring the performance of their default fund
  • 87% of employers are not completely confident they would pass the Pensions Regulator’s auto enrolment spot check
  • Over 50% of employers have not reviewed scheme charges in the last 2 years

1. Employers not using Salary Exchange (Sacrifice)
The survey found that around 1 in 5 employers are not using salary exchange and are missing out on substantial tax savings. It also suggested that of the ones who are using it, many of them are not using it effectively. Salary Exchange can help increase an average UK employees take home pay by £15 per month, whilst saving the employer more than this for each employee.

2. Employers not monitoring the workplace pension default fund
Nearly 60% of employers stated that they hadn’t reviewed their default fund in the last 12 months and 25% said that have not done so in the last 3 years. Many business owners are not aware that new employees joining the company maybe going into a different default fund compared to that of their longer serving colleagues and the fund make up and performances can be completely different.

3. The Pensions Regulator Auto Enrolment Spot Check
From January 2022 to June 2022 the Pensions Regulator issued approximately:

  • 20,000 Compliance Notices
  • 15,000 Fixed Penalty Notices
  • 6,000 Escalating Penalty Notices

In July 2022, with the easing of social distancing restrictions, the Pensions Regulator announced plans to increase its auto enrolment compliance inspections. The Pensions Regulator stated that its aim was ‘not to catch employers out’, but to ‘make sure employers become compliant’. Clearly it is good practice for employers to be aware of their auto enrolment compliance duties, rather than wait until they are caught out by the Pensions Regulator.

4. Pension Scheme Charges
Over half of the employers surveyed said that they had not reviewed the charges paid by the company, or their employees, in the last 2 years. With the changes in the pension arena over that last couple of years, many employers could find that they are able to secure lower charges for their pension scheme (meaning less money coming out of their employees retirement savings pots).

Next Step If you feel that you haven’t had the time to review your workplace pension scheme for a number of years, or that you would like to benchmark your current processes, then please get in touch with us. What’s really interesting, is we will review this for you at no cost or obligation – so it won’t cost you a penny!

Sharon Price
[email protected]
+44 79 1599 6884

Don’t leave it too late to review your pension!

24 June 2022

 A Safe Pair of Hands Charter 

As professionals working in or with the UK Personal Finance Sector: 

1. We acknowledge that as our services often involve the application of specialist and technical financial knowledge, this places many clients in a position of dependency and as such imposes upon us a greater moral duty to act in their best interests and as a ‘safe pair of hands’ , especially to those who find themselves in vulnerable circumstances. 

2. We accept that our professional obligation to use ‘best endeavours’ and place our clients’ interests above our commercial interests have a greater significance to clients who are in vulnerable circumstances and, therefore, at greater risk of detriment. 

3. We recognise that vulnerability can manifest itself in either physical, mental or emotional form (knowingly or otherwise), is dynamic in nature (short lived or longer term, sometimes permanent, transient, recurring or fluctuating over time) and may be hidden. 

4. When working with clients who seek to access our services, we treat all fairly, regardless of their identity, age, gender, race, sexual orientation, disability, gender reassignment, religion or belief, and guard against making assumptions about individuals. 

5. We believe that language and terminology is important. Vulnerability relates to circumstances and not a category of person. As such, descriptions such as ‘those in vulnerable circumstances’ should be used at all times instead of ‘vulnerable individuals’, except when only referring to individuals or groups of individuals where vulnerability is permanent. 

6. We recognise that people in vulnerable circumstances are often unaware of their vulnerability and, if they are aware, might not acknowledge it nor wish to be described as vulnerable. We, therefore, accept our heightened professional obligations towards clients in vulnerable circumstances; and the need for raised awareness, greater sensitivity, and additional technical competencies. 

7. We seek to recognise clients in vulnerable circumstances and encourage all to self-declare if appropriate, safe in the knowledge that we will:

a. adapt our business processes and professional services, so our clients do not suffer detriment at any point as we seek to deliver outcomes at least as good as for those who are not in vulnerable circumstances 

b. maintain confidentiality and ensure our behaviours are fully compliant with all relevant legislation including The Equality Act (2010), Consumer Protection regulations, The Mental Capacity Act 2005 and data protection including GDPR. 

c. We see application of the above as ‘business as usual’, part of our raison d’être and not part of a separate compliance or ‘stand-alone’ exercise. 

8. We seek to enable all members of our organisations to deal compassionately, empathetically and effectively with those in vulnerable circumstances by raising awareness of vulnerability and by providing training to all within our organisations in appropriate methods of engagement and the effective discharge of our professional services. 

9. When we encounter clients in vulnerable circumstances and recognise that they may be in immediate danger of significant abuse or harm, or may need immediate support, we will take action to contact the appropriate authorities to mitigate the risks they face. 

We are committed to helping our clients through challenging and difficult financial situations, if you are affected and would like to speak to us please call: 0208 189 6100 or email: [email protected]

14 January 2022

In this article we look at getting your ducks in a row for 2022, reducing your employee turnover and keeping the employees you need (and want).

So, here we are in 2022. You’ve had time to reflect, reset and plan for the future, and so (I would think) has your workforce. For many business owners over the last 12 months, the term ‘The Great Resignation’ will have rung true, causing increased stress on management and pressure on the remaining team and – spoiler alert – the great resignation isn’t over yet.

In Part 1 of our The Great Resignation series we covered ‘How to Measure Staff Turnover’ and ‘Why it Happens’. (If you missed this you can catch up on it here).

How to reduce costs and keep the people you want and need.

Refine your hiring process

  • Get things right from the start. That means putting in the time and effort to filter out unsuitable candidates and meet the ones worth your time.
  • Define the role clearly, along with the skills and attributes you want from the ideal candidate.
  • Have an objective basis for assessment of candidates. This will help you get better candidates more consistently and enable you to outsource some of the work, giving you more time back.
  • Use appropriate tests or roleplays to gauge their competencies.
  • Ask the candidates that you do meet open questions, rather than closed‘yes/no’ questions, so you can learn more about them.
  • Have a robust exit interview. This may sound odd under “hiring” but theanswers you get will help you improve your recruitment process.

Provide professional development

For many companies today, investing in your employees can mean the difference between a good or great company. When you invest in your employees and their growth and development in their chosen profession, not only does it make them more valuable within the company, but it also adds long-term value to the organisation itself.

While it may seem like an obvious strategy, many companies overlook the importance of investing in their employees. According to a recent Bersin by Deloitte survey, the number one reason why employees leave an organisation is due to a lack of professional growth or advancement opportunities.

The same survey states that 56% of all respondents would take a lower salary to work for an employer that offered greater career development opportunities. If you’re serious about retaining your staff, then consider providing opportunities for your current employees to grow within your organisation.

One way of doing this is to offer training and certification programs, for many of which there are grants available. This will not only allow your employees to develop their skills and increase their proficiency but also help them become more valuable and marketable in the industry.

Recognition and rewards

If your employees don’t feel valued, they will look for opportunities where they are appreciated and their work is valued. Rewarding your employees for their successes can go a long way in reducing staff turnover.

When an employee has been successful at something and you reward them with a small incentive, it reinforces that you value what they do for the company. It shows them that you appreciate their efforts and that you recognise how much time and effort they put into their work. It also gives them the recognition they deserve – something that many employees say they want more of from their employers.

Rewards don’t have to be expensive, but even a small amount of money goes a long way in making someone feel appreciated. You don’t have to create large bonuses for high performers; even giving some time off with pay can have a positive effect on morale by showing your appreciation for a job well done.

Provide work-life balance

It is important to understand what working life is like for your employees. People do not do their best work when they are under stress.

Take the time to ensure your employees’ workload is manageable. Something as trivial as encouraging staff to take their full lunch break is another way to help maintain a healthy balance.

Think seriously about company culture

Now is certainly not the time to abandon any focus on wellbeing, mental health and, ultimately, cultivating a culture of kindness. That’s kindness to ourselves and kindness to each another. When in a competitive job market, where you’re trying to attract and retain the best talent, businesses need to take a holistic approach to staff wellbeing.

Many of the factors that affect our wellbeing are beyond our control. How we think about ourselves, our relationships with others and even the weather can all have an effect. You can’t change these factors, but you can influence how your team members feel when they arrive at work. Where appropriate, employees may appreciate flexible hours or opportunities for remote working, for example.

It is also worth thinking about how you communicate information. Emailing announcements to line managers to pass on can be effective. But it can also lead to uneven spread of information, mixed messaging and alienate more junior staff. Think about which approach best fits your business and do not discount insourcing for specialist projects.

What will it cost if you get it wrong?

The “raw” costs of staff turnover, which we can calculate for your business with our ‘Staff Turnover Calculator’ is straight forward. However, there are also significant hidden costs that can impact your business. They include:

  • Increased absenteeism
  • Reduced commitment leading to less input/lower production
  • Higher levels of long-term sickness
  • Older staff unable to leave the workplace due to financial instability
  • An inability to attract the calibre of staff needed by your business

Generally, we find the costs associated with addressing this proactively are much less than the costs of retrospectively repairing the damage done.

A degree of staff turnover is inevitable and healthy when you find the right balance. Accurately tracking your staff turnover rate is the first step to finding the right balance. It will also help you understand your employees’ experience of working for you.

If your staff turnover is higher than expected, don’t take it personally. Try to unpick why employees are leaving and spot any trends. There is always a myriad of other issues to manage in a small business, but ultimately, these small positive steps will guide your journey to improved staff retention, lower costs and greater profitability.

Train people well enough so they can leave, treat them well enough so they don’t want to” – Sir Richard Branson.

If you’re interested in finding out the ‘real cost’ of your staff turnover and you’ve not yet used our simple ‘Staff Turnover Calculator’, which can show you the actual cost of staff turnover to your business, then please feel free to reach out to me so I can share this with you.

Finally, if you’ve not got your Happy Employee Report yet, click the link below.

Get your Happy Employee Report here today.

20 December 2021

Typically, December is the chance to look back over the last year and celebrate our high points. However, 2021 needs a little more consideration than other years. What sets it aside from other years is that, while 2020 felt like the year when time stopped, 2021 was very much a year of progress and development.

Can anyone remember what it was like in the years BC (Before Covid)? This was traditionally the time of year where we’d look back over the previous year and scan the horizon for the year ahead. While we still have much to be proud of and grateful for, this is also the chance for us, at Corinthian, to take the opportunity to thank you for joining us.

21 October 2021

It’s hard to believe that we are in the thick of Autumn already, the evenings are drawing in, and there is a distinct chill in the air!

The summer months seem to be a distant memory as we quickly welcome in the Autumn!

We have the pleasure in attaching our October Insights Newsletter and delighted to share some interesting articles provided by our friends at Surrey Hills Accountancy, Cowgills and Riqueza Business Solutions.

If you have an article or short blog that you would like to feature in our Newsletter, please do get in touch.

7 September 2021

You’ll be aware of the announcement to increase National Insurance contributions from April next year.

You are possibly also aware that all our corporate clients use salary exchange, however, there are still thousands of companies out there that don’t.

Simply put, salary exchange could help employers offset the additional cost they will face from April 2022 and help reduce, or negate completely, the increase in tax their employees will face.

If you, or any business owners you know, are not using it, we would be more than happy to help.  See the attached article for more info.

NIC 1.25% Increase

19 August 2021

The summer months seem to be passing by quickly, along with the promised August heatwave!

I have pleasure in attaching our August Insights Newsletter and delighted to share some interesting articles provided by our friends at Supportis, Stockdales and Scottish Widows.

If you have an article, or short blog that you would like to feature in our Newsletter, please do let us know.

In the meantime, we hope you have an enjoyable remainder of the summer.

Corinthian Insights Newsletter – August 2021