Time for a new tax: This time pensions
I received this from the FSB today:
From 2012 the government intends that every employer offers every employee a pension to which both the employer and employee will have to contribute.
Your employees will have to be enrolled in the scheme from day one of starting employment, and existing staff will have to be registered by a certain date.
Even if your employee doesn’t want a pension you will have to enrol them into the scheme so that they can then choose to opt out of it.
Much of this has already gone through parliament but the FSB is still fighting to simplify these proposals as far as possible between now and 2012. If you are an employer it is really important that you follow the link and complete our survey on this issue as we need evidence to continue fighting on your behalf.
Apprently this was approved in 2007 and is a requirement that business owners must adhere to – of any size. Although staff can opt out, a business will still have to opt them in first. More paperwork. And the FSB are only fighting to “simplify”. Looks like its too late for a recount?
We don’t need another tax, or another layer of administration. Jobs are not for life in the 21st century, and forcing employees into company-operated schemes will only create problems when the employee attempts to collect the multiple pensions when they retire (I speak from experience from the issues and unnecessary stress my Father has had).
We already have an option to contribute to an employees personal pension, but companies are not forced to make a minimum contribution by the government. This is simply a mechanism (tax) for the government to fill their dwindling coffers with our money under the veiled guise of a benefit to the employee. Further, it adds a cost burden on small businesses who do not currently contribute to pensions which makes them even more uncompetitive than they already are in a difficult market.
What do you think?