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COVID-19 and Pension Contributions

It is important to consider pension contributions when looking at the grant available under the Coronavirus Job Retention Scheme as this does not change an employer’s usual pension contribution payment obligations or processes

Within this article we look at important points to consider with regard to the retention scheme and existing salary sacrifice agreements and employer consultation if an employer would like to make a change to the existing pension provision.

Key facts

  • The requirement under workplace pensions legislation to consult on certain changes only applies if an employer has at least 50 employees
  • A salary sacrifice arrangement for pension contributions is separate from the automatic enrolment provisions and pension contribution obligations set out in a pension scheme’s rules or governing documentation
  • The existence of the grant available under the Coronavirus Job Retention Scheme does not change an employer’s usual pension contribution payment obligations or processes
  • The salary for calculating the grant should not include the cost of non-monetary benefits provided to employees, including taxable benefits in kind
  • Benefits provided through salary sacrifice schemes, including pension contributions, that reduce an employee’s taxable pay should not be included in the reference salary
  • Benefits provided through salary sacrifice schemes, including pension contributions, that reduce an employee’s taxable pay should not be included in the reference salary

Calculating salary sacrifice pension contributions for furloughed workers

Employer consultation requirements

What if the employer’s pension scheme operates on a salary exchange basis?

Pensionable pay

Life events

Working part-time while on furlough from 1 July 2020

Note

The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.

All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.

FAQs

  • Our Business Services

    Truro isn’t just a beautiful city, it’s also Cornwall’s centre for administration, leisure and retail as well as home to many independent businesses. All of these businesses, regardless of size, will have their own needs and wants when it comes to financial planning and that is why Francis Clark Financial Planning Truro always offers tailored financial planning advice from a chartered financial planner.

    All Truro based business clients are paired with a dedicated financial planner who will work closely with you and your business to make sure we fully understand your goals. This helps us offer tailored advice that we can put into action together. For day-to-day enquiries and questions, you’ll also be able to contact your own client liaison assistant – ensuring we’re always on hand whenever you need us. 

    Our business services include:

    • Business protection means that even though you don’t know when something might happen, if it does, you’re fully covered. We can work together on business loans protection, key person protection and shareholder protection
    • Employee benefits are additional incentives, on top of your employee salary. It helps employees understand how much your business values the work they do, they also play a key role in attracting new talent. We’ll help you organise an employee benefits scheme that works for you, your business plans and employees, as well as looking at ways to offset costs
    • Workplace pensions can be a complex subject. Covering occupational pensions, group pensions and master trusts, our financial planners will help you find the scheme that best suits the needs of your business and your employees
  • Our Individual Client Services

    Financial planning isn’t just for businesses. If you want to take control of your finances, plan for the retirement you deserve or make sure your family is fully covered when you’re no longer able to provide an income, working with a personal financial planner is the right first step. 

    The Truro team at Francis Clark Financial Planning will work with you so that you fully understand your current situation, advise on what course of action you can take, as well as help you create an actionable plan for you and your family’s future.

    Our individual client services include:

    • Inheritance tax doesn’t just impact those with large estates and it can lead to many difficulties if you aren’t properly prepared. An up to date and well drafted will is an essential step to making sure your loved ones benefit from your hard work and understand the relevant reliefs
    • Investment planning gives you the knowledge to understand the types of investment opportunities available to you. Our financial planners will work with you to make sure you understand portfolio diversification, risk management, investing for income and more. We will help design a personalised investment strategy and help you build a portfolio that meets your investment plans
    • Later life planning makes sure you’re prepared for any eventuality as you get older. We can help you create a financial plan of action for those unexpected expenses such as care needs so your standard of living isn’t suddenly impacted
    • Lifetime financial forecasting makes sure you understand your current financial situation and trajectory – helping you to make informed decisions on your financial future
    • Pensions and divorce can be hugely stressful, and the work of a professional financial planner can help make the transition more manageable. We will offer advice on asset management, asset division and much more – working together through life-changing events with practical steps
    • Personal protection gives you peace of mind that if due to an unexpected event such as long-term illness, accident or premature death, your family will have financial protection
    • Personal tax allowance is a complex topic with rules often changing, our financial planners will make sure you have the right information surrounding your personal tax allowance and what you should be paying
    • Retirement planning when you’re younger will make your retirement the best it can be. Regardless of whether you have a workplace pension or are self-employed, planning for your retirement and looking at private pension options will give you the financial freedom you need to fully enjoy your golden years
  • Our Individual Client Services

    Financial planning has become increasingly important for individuals who want to take control of their financial situation and plan for their future. Whether that’s planning for retirement, paying the correct amount of income tax, or taking the leap into property investment – we can help. 

    If you’re based in the Torquay area, our chartered financial planners don’t make decisions for you, we work together to help you understand your financial situation, the options available and guide you to make smart, informed choices about your financial future. 

    Our individual client services include:

    • Inheritance tax is always a difficult conversation. For many, it feels like the government is taking what is intended for their loved ones. By properly planning your will, you can make sure the right individuals benefit from your estate and understand the relevant reliefs they can claim 
    • Investment planning is an important step before making actual investments. While we can’t negate the risk associated with investment, by working with a financial planner you can build a portfolio that aligns with your aspirations, current financial situation and appetite for risk 
    • Later life planning helps you plan for expenses later in life, such as care needs, so they don’t impact your standard of living
    • Lifetime financial forecasting is an important tool if you want to understand your financial situation and know what steps you need to take to achieve your long term plans
    • Pensions and divorce can be one of the most stressful times in a person’s life and that’s why working with a financial planner can be extremely helpful. Francis Clark Financial Planning will offer practical advice on asset management, value analysis, asset division and more 
    • Personal protection helps protect your family if something comes along that prevents you from earning an income, whether it’s illness, accident or premature death, your bills and family are covered
    • Personal tax can be a complicated topic. Personal tax advice provides all you need to know about your personal tax allowance and what you should be paying
    • Retirement planning is the best way to make sure your golden years are as enjoyable as possible. Whether you’re self-employed or have a pension with your employer, taking control of a private pension can give you more financial freedom in the future
  • Our Business Services

    While many think of the traditional British seaside and vibrant, friendly community when they think of Torquay, it also hosts many inspiring, diverse businesses. At Francis Clark Financial Planning we appreciate that while all of these businesses may share the same beautiful home, they each have very unique needs when it comes to planning their finances. 

    When working with the Torquay team at Francis Clark Financial Planning, you’ll have a dedicated chartered financial planner who will work closely with you and your business to make sure they fully understand who you are and what you need. All of our Torquay based business clients also have access to a client liaison assistant who will answer your day-to-day queries, so you always have someone on hand when you need them. 

    Our business services include:

    • Business protection includes business loan protection, key person protection and shareholder protection. You can’t plan for unforeseen circumstances, but you can be ready and prepared for when they arise 
    • Employee benefits don’t just help boost team morale and make sure your employees know how valued they are, they also help you attract new talent. Working with our financial planners, we can help you create a scheme that benefits both your business and employees
    • Workplace pensions aren’t one size fits all. There are a variety of workplace pension schemes, including occupational pensions, group pensions and master trusts. Our financial planners can help you understand the differences and find what suits your business best
  • Our Individual Client Services

    While many think of financial planning as being something only businesses concern themselves with, it’s just as important for individuals to take control of their financial planning too. Personal financial planning will give you the freedom to fully understand your financial situation and start making serious plans for the future.

    If you live in the Taunton area, our chartered financial planners are on hand to answer any questions you may have, as well as help you create a plan of action for reaching your financial goals. 

    Our individual client services include:

    • Inheritance tax is one of the least liked taxes there is, but that’s why it’s important to begin planning in advance and keep hold of an up to date will. Our financial planners will help you plan and draft your will so that your loved ones are able to fully maximise their inheritance and understand relevant reliefs
    • Investment planning works to make sure you have a good understanding of the different types of investments and what investment options are available to you before building a personalised portfolio and investment strategy. Our financial planners will not negate the risk of investment but will make sure you take an approach that matches your aspirations and approach to risk 
    • Later life planning is an important step for planning  needs and expenses you may incur later in life, such as how you’ll fund care needs
    • Lifetime financial forecasting isn’t just for business. It’s important to understand your financial situation and begin to create long term plans for the future you want 
    • Pensions and divorce involve large assets and are incredibly transitional parts of your life. Working with a financial planner at Francis Clark Financial Planning helps to take away some of the stress, as well as provide practical advice on asset management, value analysis, asset division and much more
    • Personal protection means that if something happens and you are unable to earn an income, whether because of long-term illness an accident or premature death, you and your bills are covered 
    • Personal tax often changes and our professional advice will make sure you have all the information necessary when it comes to your personal tax allowance and what you should be paying
    • Retirement planning gives you the tools you need to be proactive when it comes to financing your golden years. Whether you are self-employed or are entitled to an employer pension, a private pension has many benefits. Our financial planners will be able to advise on the best steps for you
  • Our Business Services

    Taunton’s thriving business community is home to a dynamic range of businesses covering many sectors. With a huge array of top UK companies, and a growing independent and SME business scene, the financial needs of Taunton’s businesses truly varies. 

    When you work with Francis Clark Financial Planning Taunton, you aren’t just hiring a service, we become a partner to your business. Working closely with your dedicated chartered financial planner, we offer tailored advice and services to suit your needs. Alongside your dedicated financial planner, every business client will also have a client liaison assistant on hand to answer day-to-day queries.  

    Our business services include:

    • Business protection means that when unexpected things happen, your business can continue operating without a hitch. We can advise on business loan protection, key person protection and shareholder protection
    • Employee benefits are vital for ensuring your employees feel valued and improving team morale. In today’s competitive market, it’s also essential to attracting new talent. Our financial planners will work alongside your business to create a package that benefits both your business and your employees – whilst also looking at ways we can offset some of the costs
    • Workplace pensions are about more than doing the basics. With our help, you can make sure your employees benefit from the best pension scheme your company can offer. We can work with you on occupational pensions, group pensions and master trusts
  • Our Business Services

    Salisbury is a historic city that hosts many of the UK’s top companies, with a huge range of international and independent local businesses, Francis Clark Financial Planning’s tailored approach to financial planning means we know what it takes to provide services completely unique to a business.  

    Every Francis Clark Financial Planning Salisbury based business client has a dedicated financial planner who acts as a partner to your business – taking the time to fully understand you, your situation and what your goals are. As well as a dedicated financial planner, our business clients also have access to a client liaison assistant to answer day-to-day questions, making sure your needs are met at all times. 

    Our business services include:

    • Business protection including business loans protection, key person protection and shareholder protection, makes sure your business is prepared for all eventualities
    • Employee benefits don’t only make sure your employees know how valued they are, it helps you attract new talent as your business grows. Our financial planners help create a tailored employee benefit plan that works for your business and employees
    • Workplace pensions to benefit both your business and employee, including occupational pensions, group pensions and master trusts
  • Our Individual Client Services

    As an individual, financial planning is a liberating experience, helping you to take control of your financial future and giving you the tools needed to take control of your money.

    If you live in the Salisbury area, working with a financial planning expert at Francis Clark Financial Planning gives you the opportunity to ask questions about your finances, set realistic goals and begin to take proactive steps. 

    Our individual client services include:

    • Inheritance tax is important to take into consideration when planning the inheritance you want to leave to your loved ones. Our financial planners can help you create a well-drafted and up to date will – making sure the right people benefit from your estate and understand what reliefs and taxes will be necessary 
    • Investment planning helps individuals understand what investment options are available, allows you to build a personalised investment strategy, as well as providing ongoing assessments and adjustment advice 
    • Later life planning makes sure you have plans in place for your later life like funding care fees and care needs annuities
    • Lifetime financial forecasting gives you an assessment of your current financial situation and creates attainable long-term plans for your future showing the steps you need to take to achieve them
    • Pensions and divorce are a life-changing experience that can be made less stressful with the help of our professional expert advisors
    • Personal protection gives you peace of mind that if something unexpected happens, you and your family can continue to cover the bills
    • Personal tax advice to make sure you have all the information you need when it comes to personal tax, allowances and what you should be paying
    • Retirement planning has never been more important. We can help you plan private pensions and retirement plans, for both self-employed and those with a pension from their employer
  • Our Business Services

    Known for its lively business hub, Poole is home to a wide mix of companies – with expanding sectors in marine technologies, inbound tourism, manufacturing and creative industries to name a few. We fully appreciate that a wide range of businesses requires a wide range of services and all have very unique needs when it comes to planning their finances. 

    Francis Clark Financial Planning’s Poole team of chartered financial planners pride themselves on their tailored approach. All their advice and planning will be specific to your business, its needs and your goals. 

    We’ll partner every Poole based business client with a dedicated financial planner as well as a client liaison assistant to answer any day-to-day questions –  making sure you always have a member of Francis Clark Financial Planning available for your business. 

    Our business services include:

    • Business protection including business loan protection, key person protection and shareholder protection. This makes sure your business is prepared and ready for any unplanned situations
    • Employee benefits are vital for top talent acquisition and retention. There is no single employee benefit plan that will suit every business. Our financial planners will help you create a tailored plan as well as look at where you may be able to offset some costs
    • Workplace pensions with options including occupational pensions, group pensions and master trusts, ensure pension benefits suit both your business and employees
  • Our Individual Client Services

    It’s becoming increasingly important to take an informed approach when it comes to your financial situation. While the idea of personal financial planning can seem intimidating, it can actually take away many concerns and give you a feeling of control when it comes to planning your financial future. 

    If you live in the Poole area, working with a financial planner will give you a clearer view of your current financial situation and ensure you’re heading in the right direction. Our financial planners can help you deal with major life events like divorce, retirement and inheritance as well as long-term financial decisions like investment and lifetime planning. 

    Our individual client services include:

    • Inheritance tax (IHT) planning helps you plan for how IHT may impact your loved ones after you’ve gone. Our financial planners will guide you on gifting, trusts and all other areas of inheritance
    • Investment planning works to help you create an investment portfolio that suits your investment objectives with regular advice and adjustments to maximise your finances 
    • Later life planning makes sure you are fully prepared for your next steps and have plans in place like how to fund care fees and care needs annuities
    • Lifetime financial forecasting has always been a common term in business but now individuals are seeing the benefits it can have on personal finances. Lifetime financial forecasting helps you create goals for your future and work on plans to achieve them
    • Pensions and divorce takes a lot of planning and preparation and the help of a professional can make it a much more manageable experience
    • Personal protection makes sure that if you die or are suddenly are unable to earn an income, you have protection in place to look after your family
    • Personal tax will help you understand and reduce your personal tax liabilities
    • Retirement planning gives you control, and relaxation, in your later years. Whether you have an employee pension or are self-employed, exploring pension and long term investment options can help you make the most of your golden years
  • Our Business Services

    As a port city, known for its maritime heritage and historic Barbican district, it’s of no surprise that Plymouth is a huge draw for many businesses. Plymouth has an especially diverse range of businesses spanning many specialisations – working on both a national and international scale. 

    All of these businesses will have their own individual needs and goals when it comes to financial planning and the Plymouth financial planning team understands this. This is why we will work with businesses to offer completely tailored solutions. 

    Acting in partnership with your business, you’ll have a financial planner dedicated to your account who will advise you on your financial plans and implement your next steps. You’ll also have a client liaison assistant to quickly deal with day-to-day enquiries – making sure you always have a dedicated member of the Francis Clark Financial Planning Plymouth team available whenever you need them. 

    Our business services include:

    • Business protection to make sure you are prepared for all circumstances. Our business protection includes business loan, shareholder and key person protection 
    • Employee benefits are essential to make sure your team understands how valued they are in your business. Every company will need its own tailored benefits package that works for employees as well as employers. We can help you create a tailored package and even help you to offset some of the costs
    • Workplace pensions that suit your business, whether it’s an occupational pension, group pension or master trust
  • Our Individual Client Services

    Financial planning is as important for individuals as it is for businesses. Financial planning is about helping you understand, and take control of your life. 

    Personal financial planning gives you the opportunity to understand your current financial circumstances and make realistic financial plans for your future. From making retirement plans to helping you deal with a divorce; our Plymouth financial planners are on hand every step of the way. 

    Many find working with a financial planner a liberating experience as it gives you the opportunity to ask all of the questions you have. You can ask about what position your finances are in, and the steps you need for a healthy retirement. If you’re in the Plymouth area, we can help you understand investment opportunities, build your portfolio, and much more. 

    Our individual client services include:

    • Inheritance tax planning is an important step to making sure your loved ones are cared for. Our inheritance tax (IHT) planning will help you understand how IHT could impact your estate and how to plan for this
    • Investment planning will walk you through your investment options, devise an investment strategy and help build your investment portfolio – balancing your approach to investment risk with your financial capability 
    • Later life planning gives you the opportunity to make plans towards your future, including lifetime financial forecasting and planning for future care needs
    • Lifetime financial forecasting is well-known in business but individuals can use it to great effect, too. Lifetime financial forecasting helps you create goals around how much money you should be saving to plan the retirement you want and to leave an inheritance
    • Pensions and divorce A life-changing event, which is why a professional can help you work through your options and assist you in making fully informed decisions
    • Personal protection will help make sure your family is protected if you are suddenly unable to earn an income
    • Personal tax will help you understand and minimise your personal tax liabilities
    • Retirement planning helps you take control of your golden years. Whether you work for an employer and receive a pension from them or are self-employed, we can work you through your pension options
  • Our Business Services

    Bristol is the proud home to over 50,000 businesses with over half of them being SMEs. With our tailored financial planning services, we will go above and beyond the basics to work with your Bristol-based business. We appreciate that every business has different goals, own resources and time with which to achieve them. That is where Francis Clark Financial Planning steps in. 

    We are not just a service, we are a partner to your business. As a business client, you’ll benefit from a dedicated business financial planner who will be able to advise and improve your financial planning. For day-to-day enquiries, you’ll also have a client liaison assistant so we’re always available to talk when you need us – whether in person or over the phone. 

    Our business services include:

    • Business protection including shareholder protection, key person protection and business loan protection. With our help, whatever the circumstances, you’ll have a plan for peace of mind 
    • Employee benefits will help make sure your team feels valued and make it easier to attract new talent. There’s no one-size-fits-all solution, so our financial planners will help you find the benefits that best suit your company and, where possible, help you offset some of the cost
    • Workplace pensions that go beyond the basics. We’ll help you find the best pension type, whether it’s a group pension, master trust or occupational pension
  • Our Individual Client Services

    Working with a financial planner gives you the opportunity to ask all the questions you have but are never sure who to ask – What is the most efficient way to plan for retirement? How do you begin to plan investments? What steps can you take to improve your current financial situation? 

    If you live in the Bristol area, our financial planners are on hand to assist you with pensions, investment planning, later life planning, retirement planning and personal protection. It’s not just about planning for the here and now, we can help you understand your options for other big life events too, such as dealing with divorce and inheritance tax. 

    Our individual client services include:

    • Inheritance tax planning which can involve gifting, trusts, life insurance and investments attracting business property relief
    • Investment planning to help you understand your investment options and then create a personalised investment strategy and portfolio to meet your objectives
    • Later life planning will help you build a financial strategy that plans for your future care
    • Lifetime financial forecasting is a common occurrence in business but it’s just as important for individuals. It will help you understand goals like how much you should be saving and, when you’re likely to be able to retire 
    • Pensions and divorce divorce is a huge change to a person’s life and professional help makes sure you understand your options 
    • Personal protection will help make sure your family is protected if you are no longer around earning income or looking after the children and running the household 
    • Personal tax will help you understand your personal tax allowance
    • Retirement planning has never been more important. We can help you plan private pensions and retirement plans, for both self-employed and those with a pension from their employer
  • Our Business Services

    Exeter is home to many thriving businesses and at Francis Clark Financial Planning, we recognise each will have its own individual needs and goals. That’s why all  our financial planning services are specifically tailored to every business we work with.

    As one of Francis Clark Financial Planning’s Exeter based business clients, your company will have a dedicated financial planner on hand for all of your financial planning needs. 

    Our business services include:

    • Business protection that covers shareholder, key person and business loan protection. This makes sure that you’re prepared if a key person dies of suffers a critical illness
    • Employee benefits make sure your team knows they’re valued – making it easier to retain top talent. But we understand every business will have its own budget and limitations, so our financial planners will help you organise the most suitable employee benefit scheme for your company and offset costs where possible 
    • Workplace pensions make sure you find the pension scheme that works best for your business. This can involve group pensions, occupational pensions or master trusts. Making sure your employees understand how vital they are to you by looking after their future
  • Our Individual Client Services

    Financial planning is about taking control of your financial future. At Francis Clark Financial Planning Exeter, our goal is to help you realise your financial aspirations and what it is you need to do to reach them. 

    Do you want to find out more about when you’re going to be able to retire, and how much you’ll have to live on? Are you looking to make sure your loved ones are taken care of with an inheritance? Perhaps you’re ready to start investing but want personalised advice on how to maximise your assets. If you live in the Exeter area, our financial planning team can assist you every step of the way.

    Our individual client services include:

    • Inheritance tax we’ll help you understand how your estate will be impacted by inheritance tax (IHT) and the steps you can take to reduce it
    • Investment planning will give you the tools to understand your investment options and begin to build a personalised investment strategy and portfolio to meet your goals
    • Later life planning will help you build a financial strategy that plans for future care
    • Lifetime financial forecasting is a well-known term in business but individuals tend not to pay as much attention to it. Lifetime financial forecasting will help you understand your current and future financial position and help build realistic goals
    • Pensions and divorce advice can help you understand the best course of action for you during these life-changing times 
    • Personal protection makes sure that if you die or are suddenly unable to earn an income, due to a sudden or long-term illness, your family is still protected financially 
    • Personal tax advice to help you minimise your personal tax liabilities
    • Retirement planning is an essential step for every individual who wants to safeguard their future. Whether you’re self-employed or have a pension from an employer, we can help you plan for your retirement
  • Will my investments be covered by the Financial Services Compensation Scheme (FSCS)?

    We contribute to the Financial Services Compensation Scheme, so you can rest assured you are protected in the event of firm or provider failures in our industry.

  • Will I have to travel to meet my financial planner?

    We have the flexibility and technology to meet in a way that suits you. You can visit our office or we can visit you at your home or place of work. Alternatively we can arrange to meet via Zoom, Teams or over the phone if this is preferable.

  • How long will the first meeting last?

    The initial meeting is usually around an hour although this is not limited. We allow plenty of time to discuss the matters that are important to you.

  • What will we cover in the initial meeting?

    We will take this time to get to know you and get a clear understanding of your current financial position and your plans for the future. If we can help, we will explain the next steps and the associated fees which we will confirm in a written Letter of Engagement after the meeting. We will only start any work once we receive a signed Letter of Engagement. If we cannot help, we will signpost the most suitable next steps for you.

  • Want to find out more about how you could benefit from PKF Francis Clark’s Services? Get in touch with us today!

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