What legislation allows for Pension Advice charges to qualify for Salary Sacrifice scheme?
On November 16th 2017 the Finance Act 2 was given Royal Assent, allowing employers to pay or reimburse the first £500 p.a. cost incurred by employees in receiving advice or information related to their pension arrangements.
There is more information here
I'm confused. Explain again how it works?
Hopefully this diagram will help:
Which employees are eligible for Pension Advice Vouchers?
You are eligible if you:
- Paid for pension advice since 6th April 2017
- Are employed and pay tax in UK
- Your employer has made this scheme available to you, or is willing to
- Your pension advice fees were not paid from your pension fund
What counts as 'pension advice'?
The exemption applies to the provision of information or advice in connection with the person’s pension arrangements or the use of the person’s pension funds. It can include advice on general financial and tax issues relating to pensions arrangements or pension funds allowing individuals to make informed decisions about saving for their retirement.
I/we have multiple employers - can I/we claim twice?
Yes. The limit is £500 p.a. per employment
Who's behind Pension Advice Vouchers?
Pension Advice Vouchers comes 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.
What are your charges?
There is no charge for either advisers or their clients. We charge employers 13.8% of the reimbursement value, to cover the cost of running the scheme. This is in line with comparable schemes (e.g., Childcare Vouchers), and usually offset by the National Insurance employers save through salary sacrifice. In addition it is the most efficient way for the employer to be confident that qualifying advice has been received from an appropriately authorised professional.