PracticeWEB No Comments

Flexible working set to increase

Almost two thirds (65%) of private sector employers think flexible working will increase over the next 5 years, according to Aviva.

The study of 500 employers and 2,000 employees found 51% of businesses said flexible working increases productivity and 68% said it improved staff satisfaction.

Of those who currently work flexibly, 37% were happier at work and 34% were able to manage their responsibilities outside of work more effectively.

Flexible working also improved retention and recruitment with 63% of workers more likely to stay with an employer who offers flexible benefits.36% saw flexible working as a key factor when considering a new job.

Flexible working options most valued by workers:

  • working from home (23%)
  • working longer hours over shorter number of days (22%)
  • working flexible hours across the week (19%).

Gareth Hemming, director of SME insurance at Aviva, said:

“Businesses may need to rethink the way their employees work and should consider the benefits flexible working could bring in meeting business goals. 

“It can also support employees looking to manage their work-life balance better as they juggle work with busy lives, looking after family young and old, managing health or even wanting more time to pursue other interests.” 

Talk to us about how flexible working can benefit your business.

PracticeWEB No Comments

Millennials drive workplace pension participation

78% of eligible employees participated in a workplace pension scheme in 2016, according to the Department for Work & Pensions.

The biggest jump in growth was from those under 30 working in the private sector with the number of people participating increasing from 24% in 2012 to 68% in 2016.

By industry, 89% of those working in the energy and water sector took part in a workplace pension, compared to 44% working in agriculture and fishing.

By region, employees in the South West saw the biggest rise in participation with 94% having enrolled into workplace pensions.

Alistair McQueen, head of savings & retirement at Aviva, said:

“Today’s millennials face financial pressures like never before. House prices have sky-rocketed, a ‘job-for-life’ is a thing of the past, and it is not uncommon to begin your career with thousands of pounds of student debt.

“Millennials want to prioritise long-term saving before short-term spending and they are putting their money where their mouth is. No longer can people claim that today’s millennials are living just for today.”

Talk to us today about your workplace pension.

PracticeWEB No Comments

Workers missing out on pension top-up

More than 3 million people could be missing out on a pension top-up from their employer by failing to make a small contribution into their workplace pension scheme.

According to Royal London, many larger businesses offer valuable ‘matching’ contributions on workplace pensions.

The minimum contribution level to a workplace pension scheme is based on qualifying earnings. The rates are set to rise from April 2018:

Date Minimum employee contribution Minimum employer contribution
Before April 2018 1% 1%
April 2018 – April 2019 3% 2%
After April 2019 5% 3%

However, employees who don’t take up the offer from their employer could be missing out on an extra £650 of income per year.

Royal London estimates that a 40-year-old employee on average earnings who takes full advantage of the employer contribution would have £3,500 per year more than a worker contributing the minimum amount.

Steve Webb, director of policy at Royal London, said:

“When individuals are thinking about where to put their money to get the best return, the chance to more than double your money through an employer contribution and tax relief from the government takes a lot of beating.

“Employees need to find out if their employer offers additional matching pension contributions and give serious consideration to increasing their contributions if they can afford to so.”

We can provide advice on your retirement planning.

PracticeWEB No Comments

Fuel rates changes for company cars

Advisory fuel rates for employees who use company cars have now changed.

The following rates apply as of 1 June 2017. Previous rates can be used for up to 1 month after the new rates apply:

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 21p 14p

The following rates apply for diesel cars:

Engine size Diesel – amount per mile
1600cc or less 9p
1601cc to 2000cc 11p
Over 2000cc 13p

Hybrid cars can be treated as either petrol or diesel cars.

Fuel rates only apply when:

  • a company reimburses employees for business travel using their company car
  • the employee is required to repay the cost of fuel for private travel.

Contact us today to discuss how these changes may affect your business.

PracticeWEB No Comments

P60 deadline final reminder

If you have yet to issue your staff with P60s for the 2016/17 tax year, the final deadline is 31 May 2017.

Employees recruited by an employer on the last day of the tax year (5 April) must be given a P60 electronically through the payroll system. 

If your payroll system doesn’t automatically produce P60s, paper forms can be ordered from HMRC.

A P60 summarises their total pay and deductions for the tax year.

Employees require a P60 to:

  • claim back any overpaid tax
  • apply for tax credits
  • provide evidence of income if applying for a loan or a mortgage.

If a change is required to a P60, you need to provide a new form to employees marked ‘replacement’ and a letter to confirm the change.

Talk to us today about your reporting obligations.