In a nutshell: Employees can sacrifice as little as £190 net pay, to receive £500 towards the cost of financial advice. This can be paid to their financial adviser, or paid to the employee to reimburse them for fees they've already paid.
See How Much You Could Save
Receive £500 p.a. to cover the cost of pension advice, by sacrificing just:
£340 if you earn £12,000
£290 if you earn £46,000
£190 if you earn £101,000
after £123,500, sacrifice £290; after £150,500 sacrifice £265
On November 16th 2017 a new Act was passed, allowing employers to reimburse employees (up to £500 p.a.) for any costs incurred, or due to incur, in receiving advice or guidance related to their pension.
The government have introduced this as a non-taxable benefit, knowing it's vital that people seek professional financial advice on their future retirement.
Of course, few employers can afford to simply give their staff an extra £500, so they'll usually ask that they deduct the same amount from your salary.
That means you're giving up salary, which would have incurred tax and national insurance, in return for an employer reimbursement (to cover the cost of the pension advice), on which no tax or national insurance is payable.
How it works
Employee agrees to sacrifice up to £500 salary - which would have been TAXED*
We confirm with adviser that employee has paid for pension advice, or is committed to
(or we can help the employee find an adviser if needed)
Employer approves request and transfers funds via Pension Advice Vouchers - this is NOT TAXABLE*
* employees sacrifice salary would have incurred income tax and national insurance, whereas the pension advice voucher incurs neither.
In the News...
"Millions of workers missing out on pensions perk"
"Psst! The boss can save you up to £310 on pensions advice"
"Employers and advisers have until April to take advantage"
"It makes perfect sense"
"A saving of up to £310 per annum can be achieved"
"people [need to] realise they are able to do this"
Pension Advice Vouchers come from VouchedFor.co.uk, the UK's leading reviews website for financial and legal professionals. We’ve already helped over 100,000 people find a great financial adviser.
Now we’re on a mission to help employers make it easy - and more affordable - for their employees to get brilliant financial advice. Whether your employee has complex needs requiring a top-rated local Independent Financial Adviser, or they would like a FREE financial plan from one of the financial coaches at Hatch, we make it easy and more tax efficient to find the best solution.