However, pensions are a minefield when it comes to sorting out tax relief. It is worth trying to do it yourself as it is potentially a very expensive business when you start paying fees to pension advisers, financial consultants, accountants and solicitors. As most of the practical considerations come back to payroll services, it is often worth considering payroll outsourcing as a way of retaining specialists without incurring exorbitant fees. A payroll solution is a sensible solution.
Any pension scheme for employees needs to be registered with H M Revenue and Customs in order that tax relief can be given. There have been many changes to the systems the Revenue uses to keep track of pension schemes over the years.
One option is to register the scheme with the Revenue. Another is to deduct pension contributions from the payroll and pay them into an approved pension scheme. This can be done under the 'Net Pay Arrangement', provided that the scheme is an occupational pension one and that you use the arrangement for all employees to whom it applies.
There are also special rules that apply to lump sum pension contributions.
This is one small area of payroll services and this article has only scratched the surface. Perhaps you should talk to us at Dataplan Payroll so we can demonstrate how easy and cost effective payroll outsourcing is.