LLPs risk inflated pension levy costs
LLPs mistaken for start ups risk exaggerated levy costs
LLPs mistaken for start ups risk exaggerated levy costs
Newly created limited liability partnerships risk paying larger than
necessary pension levies because they could be mistakenly assessed as beiing
start up businesses, according to Grant Thornton.
The firm said the mistake could be made if risk assessors see there is only
one year’s accounts at Companies House, potentially leading to the conclusion
that the partnership has only been in business for a very short time.
Under the new Pension Protection Fund regime businesses with defined benefit
schemes have to pay a levy from April 2006 to build up the fund’s reserves.
the levy forms a new cash cost and is based on a financial risk assessment.
Roger Zair, head of professional partnerships at GT said: ‘The financial risk
assessment may be incorrectly based on the business being a new start up
because of a recent conversion to LLP status from partnership with only one
year’s accounts having been filed at Companies House.
‘If the facts of its financial history are properly explained to the risk
assessor, the firm may be able to achieve a considerable saving in the levy.’
The numbers you crunch tell a story. Your expertis...
18yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleNationwide acquires Virgin Money for £2.9 billion, becoming the UK's second-largest mortgage lender and significantly altering the financial sector's ...
View articleThe Bank of England maintains the interest rate at 5.25%, reflecting optimism for economic recovery and potential future rate cuts, amidst signs of ea...
View articleUK wage growth cools, sparking debate within the Bank of England. Will a slowdown be enough to tame inflation and avoid interest rate hikes? Household...
View articleWorking parents can save on Easter childcare with the Tax-Free Childcare scheme. Read More...
View articleUK's accounting watchdog, the FRC, eyes a move out of London's financial center by year-end. Canary Wharf or Stratford are potential new hubs, reflect...
View articleSmall businesses within the UK will be allowed to take out loans up to £50k, with all loans guaranteed at the same interest rate Read More...
View articleAmidst cancelled exams and revoked internships, there are concerns that the accountants of the future are being left behind Read More...
View articleData security experts warn accountants that phishing and hacking schemes are on the rise, putting firms at risk of GDPR fines and data breaches Read M...
View article