Choose the right pension scheme

Benefits of having a workplace-based pension scheme

Introducing a pension scheme can have significant and real advantages for your business. One of the main benefits of a workplace-based scheme is that it can boost morale among your staff and help in recruiting and retaining employees.

Employers' contributions to a pension scheme for staff, whether it is an occupational, personal or stakeholder plan, attract tax relief. This makes it a tax-efficient way of increasing employee benefits and remuneration.

In the case of personal and stakeholder plans, HM Revenue & Customs pays a National Insurance rebate plus tax relief directly into the pension scheme. Tax relief is also available for employees' contributions to occupational, personal and executive pensions, making this one of the most tax-efficient ways to save for retirement. Employer contributions are also an allowable business expense and are therefore not subject to corporation tax.

For information about the advantages and disadvantages of the different types of scheme, see the page in this guide on a comparison of pension schemes.

For an explanation of how each pension scheme works, see our guide: know your legal obligations on pensions.

Subjects covered in this guide

• Introduction
• Benefits of having a workplace-based pension scheme
• Choosing an occupational pension scheme
• Choosing a group personal pension
• Choosing a stakeholder pension scheme
• Approved pension schemes for directors and owners
• Unapproved pension schemes for directors and owners
• Comparison of pension schemes
• Organisations that advise on pensions schemes
• Considerations when choosing a pension scheme
• Here's how I selected the best company pension scheme for my business

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