WEALTH at work has had considerable demand recently to implement a Workplace ISA following the emergency budget announcement last month.
Paul Bloomfield, Head of Tax at
WEALTH at work comments "The budget brought about many changes such as an increase
in national insurance and capital gains tax. However, higher earners must still be aware of the
previous governments ‘anti-forestalling' legislation for the current tax year. From April 2011, a
reduced annual allowance of between £30,000 and £45,000 may restrict some senior employees - many
of whom have become used to contributing a proportion of their variable pay to a pension.
Therefore, an alternative savings vehicle is needed".
WEALTH at work are currently working with a number of corporate clients to deliver
the
Workplace ISA to their employees, both in isolation and as part of a larger
flexible savings portal which provides short, medium and long term savings choices to employees.
WEALTH at work provide the Workplace ISA but do not recommend it is provided in
isolation.
Jonathan Watts-Lay, Director at
WEALTH at work added, "A
Workplace ISA is the ideal tax efficient savings vehicle. But it should only
be implemented with the support of
financial education, so that employees understand the considerable benefits
available to them. Employees often believe they can achieve the same benefit purchasing an ISA from
the High Street as a
Workplace ISA but this is seldom the case. For example, if transferring Company
shares from a Save As You Earn Scheme, this needs to be done using what is called an in specie
transfer to help mitigate any potential capital gains tax.
WEALTH at work is leading the way to provide a combined offering of
financial education and
Workplace ISA to ensure employees maximise the value of the benefits on offer to
them in the
workplace".
Details of our Workplace ISA can be found
"Financial education is a
key component of Workplace ISA" here.
