Monthly Archives: May 2018

GDPR

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Drummond Laurie Chartered AccountantsThe UK’s Data protection rules are set to dramatically change with the introduction of the EU’s General Data Protection Regulation (GDPR) which comes into force from today’s date.  The new regulations involve significant changes on how organisations collect and process data.  The new restrictions being brought mean that there are now greater penalties for failing to meet data protection regulations.  The introduction of GDPR has a serious impact on employers in terms of how personal data is processed and stored for not just employees but also for contractors and job applicants.

  • Complying with the GDPR is not a choice – it is mandatory.
  • The new regulations affect all businesses that process personal data and they will require to comply with the GDPR as they process such information about their employees, customers, clients and suppliers. 
  • The GDPR directly regulates “data processors” for the first time.  “Data controllers” will continue to be regulated. 
  • Organisations require to tell individuals more about why they are using their information and how they are using it – as well as what rights individuals have in respect of the data held.
  • There will be potential fines imposed for non-compliance of up to 20 million euros or 4% of annual worldwide revenues, whichever is greater.

 

Here at Drummond Laurie we have taken a pro-active approach to these changes to ensure our compliance with the regulations.  Details of our GDPR Privacy Statement can be found here.

 

Barry’s getting Married

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Drummond Laurie Chartered AccountantsAnother celebration in the office this week, this time Barry Evans is getting married this weekend to Laura.  In true Drummond Laurie style we couldn’t let him leave without some balloons and all of our best wishes!

We all wish you both every happiness for the future as Mr. & Mrs. Evans, have a great time on Saturday, enjoy every moment.

 

 

Informed inertia – the new game in town

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Drummond Laurie Chartered AccountantsApril 6th marked the first increase in minimum contributions for auto enrolment since this started back in 2012. Research shows that two thirds of auto enrolled savers were blissfully unaware that an increase was happening!

Perhaps this shouldn’t be a surprise, after all, much of auto enrolment’s success is down to inertia. But crossing our fingers and hoping savers don’t notice that more is being taken out of their pay packet for their pension feels like a high-risk strategy.

The time is right for auto enrolled savers to do what the government campaign is urging and start to ‘get to know’ their pension. We need to move from ‘inertia’ to ‘informed inertia’ with pension providers, employers and the government working together to drive home the benefits of pension saving. In taking this approach, we stand a much better chance of convincing savers to continue to do nothing when the contributions rise.

At the moment, contribution levels are so low that many savers aren’t noticing the small deduction from their pay packet. But, with minimum contributions increasing from 2% of qualifying earnings – with 1% being paid by the employer and 1% by the employee to a new total of 5% – with 2% being paid by the employer and 3% being paid by the employee – the change is likely to be noticed.

For somebody earning £30,000 they’ll see an increase in the amount being paid into their pension from just £40.21 per month (of which they were contributing £20.10) to £100.52 (of which they will contribute £60.31).

These additional employer contributions into a workplace pension are like a pay rise, and it’s unlikely anyone would turn that down. But, if they decide to stop paying in, they’ll lose their employer contribution. Saving into a pension is also one of the most tax efficient ways to save which shouldn’t be overlooked.

Successfully navigating this increase is auto enrolment’s first big test. So far, headline opt out rates have remained low at around 9%, with millennials far more likely to stay in than older age groups.  For the most part, people want to do the right thing and save for their future and auto enrolment makes it easy for them to do so.  But, with member contributions tripling, it will be enough for some people to question their resolve.

Savers need to know about the changes and they need to be reminded that while they’ll be paying more in, their employer will also be paying more.

For more information please visit the Pension Regulator

 

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