We provide a pension scheme inline with the UK Government's rollout of automatic enrolment. We automatically enrol everyone in our pension scheme after their probation period (usually 3 months).
- Our current pension plan is provided by Royal London
- If you want to opt out there are now Government guidelines on doing so
- You can opt to contribute more to your employee contribution, feel free to speak to [email protected] about this
- You can read more about Workplace pensions on gov.uk
- You can read more about Pensions and some third party advice on MoneySavingExpert
As your employer we will contribute towards your pension alongside your own contribution.
From April 2019 the minimum amount that you pay into your pension is 5% and we pay 3%—a total minimum contribution equivilent to 8% of your salary.
You can choose to increase your pension contribution sooner. You can do this by speaking with our finance department on [email protected].
The workplace pension plan we use is a relief at source scheme. This means that pension contributions are taken after tax has been deducted from your salary.
As private pension contributions are tax-exempt, the income tax that has been paid on your contributions is claimed back when the money reaches your pension plan. When you choose to pay a certain amount of your monthly salary into the pension plan, 80% of that amount will be deducted from you net pay and the remaining 20% (representing the basic rate of income tax) will be claimed back by Royal London as tax relief.
If you are a higher rate tax payer you pay 40% income tax on any earnings above £50,000, leaving you entitled to an additional tax relief beyond the 20% recovered automatically. You must claim this additional tax relief to ensure that your pension contributions are entirely tax-free.
In order to do that, you will need to complete a self assessment form at the end of each tax year and will be entitled to a tax rebate that can be paid directly to your bank account.
It's important to be aware that any additional tax rebate will be paid back to you directly and not into your pension plan. Therefore, you may wish to increase your pension contributions in order to achieve the desired percentage contribution from your gross salary.