VouchedFor has launched a new service allowing employers to facilitate the Government’s new pension advice allowance.
The Government upped a tax exemption for employer-arranged pensions advice in April from £150 to £500 per employee per tax year.
A saving of up to £310 per annum can be achieved with the tax break according to the adviser directory.
VouchedFor has set up its own salary sacrifice scheme provider, Pensions Advice Vouchers, in response to a low take-up of the allowance, which it puts down to administrative burdens for employers and advisers when verifying client requests.
VouchedFor conducted a small survey of advisers indicating three quarters knew about the new rules but only one in ten had utilised them.
VouchedFor chief executive Adam Price says the service “removes the hassle of advisers and employers having to verify reimbursement requests with one another”.
He says: “It takes IFAs just seconds to log in to VouchedFor, invite their clients to claim a voucher, and verify that the advice falls within HMRC’s eligibility criteria. The employer simply needs to approve a request, transfer payment, and arrange a one-off salary sacrifice.”