A Joseph & Joseph
Chartered Certified Accountants
Business and Tax Advisers 
Registered Auditors

                                

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Employers' Responsibilities
If you are not exempt, you must give your employees access to a stakeholder pension scheme as follows:
Choose a registered stakeholder pension scheme.
Discuss your choice of scheme with qualified
    employees.
Give employees the name and address of the   
    Stakeholder Pension Scheme provider 
    (Insurance or Pension Company).
Effect payroll deductions for amount agreed with
    the employee. Minimum £20 monthly.
Send deductions to the scheme provider by the
    19th. following the month of deduction.
Employers with less than 5 employees could
    provide Stakeholder Pensions to employees
    voluntarily.
Exempted Employers
You employ less than 5 persons.
Your employees earn less than the weekly NI 
    lower limit, currently £87.
You already offer Occupational Pension Scheme
     that all staff can join within one year of starting
     work.
You offer employees access to a Personal 
     Pension which is available to all employees who
     should have access to a Stakeholder Pension
     Scheme except those under 18, and you
     contribute an amount equal to at least 3 percent
     of the employee’s basic pay to the pension.
These exemptions will be reviewed after three years from the commencement of the legislation.
Costs of Scheme
Employers’ minimum contribution: 
At least 3% of employees’ net pay. This is compulsory. (Employers’ organisations are lobbying the government to drop Compulsory Employers’ contributions).
Costs of administration: Penalty for poor record
keeping, late payment of deductions to authorities etc. (Governments Enforcer - OPRA).
Benefits to Employer
Encouraging staff loyalty.
Encouraging employees to stay longer with 
    employers/reducing costs of staff turnover.
Motivating employees to be more productive.
Benefits to Employee
Increased benefits from employer.
Improved pension on retirement.
Deadline & Penalty
Unless exemption applies, employers must have a scheme in place by 8 October 2001. If you employ a 5th. employee after July 8, 2001, you will have three months from the date of the fifth employee to designate a Stakeholder Pension Scheme. If you are not exempt, and you do not have a scheme in place for employees by 8th. October 2001, or if  you do not have one in place on taking on the fifth employee, the Occupational Pensions Regulatory Authority (OPRA) could take action against you and impose a fine. Helpful website: http://www.stakeholder.opra.gov.uk
 
National Minimum Wage
At March 2001 - £3.70/hr. from October 1st. 2001 - £4.10/hr.
Audit Exemption for Companies
Audit exemption for small companies is now £1m annual turnover from July 26th. 2000. This was £350,000 prior to this date. Audit exemption for charities stays at £90,000 turnover per annum (complete exemption) and £250,000 annual turnover (complete exemption).
Charity Sector Booming...!
The UK Charity Sector is booming with new research for 2000 showing another year of growth valuing the sector at over £65.6bn. The sector was 12% up from £58.7bn in 1999 and has seen a 58% increase since 1996 when it was worth £41.2bn, according to new research published in May 2000 by the Dresdner RCM Top 3000 Charities guide which studies the performance of the UK’ s largest Charities.
 
Table 1 - Personal Allowance Reducing Taxable Income
Personal Allowance -  under 65
4535
65-74
5990
75 and over
6260
Allowances Reducing Tax
Married Couple Allowance 65-74
536.50
75 and over
543.50
Children Tax Credit
520.00
Rent a Room Exemption per year
4250
 
Construction Industry Scheme 18% deduction rate
Table 2 Value Added Tax
Standard Rate
17.5%
Registration Limit
#54000 turnover
Cash Accounting Scheme
#600000 (2000/2001 #350000)
Table 3 Tax Allowances for Investment in Business Assets.
Motor Cars
25% Max #3000 per year
Plant & Machinery 1st. year 
40% per year small/medium businesses only
Subsequent years
25% per year reducing balance
IT Small Firms & Energy Saving
100% first year allowance
Industrial & Other Buildings
4% of cost per year
 
Contact: 2nd Floor
123 Fonthill Road
London N4 3HH
Tel: +44(0)20 7561 9955
E-mail: A Joseph Associates