The Pensions Regulator has delayed the introduction of automatic enrolment (NEST) for smaller companies with less than 3,000 workers. Their staging dates will be confirmed in 2012. Investors can now carry forward unused pension allowances from 2008/09, 2009/10 and 2010/11, allowing some to contribute more than the annual £50,000 limit. Chartwell Financial Services offers advisory services to help employers and advisers prepare for automatic enrolment reforms.

1. January 2012 Pensions Update
The Pensions Regulator has announced that the introduction of automatic enrolment (NEST) will
be delayed for smaller companies
2012 was to see the introduction of ‘Auto-Enrolment’, key pension reform designed to ensure that all employees gained
access to pensions whilst also setting minimum contribution levels for both employers and employees alike.
The date of the requirement for the new pension law that applies to an employer is known as their ‘staging date’. Staging
dates for the largest employers who are part of PAYE schemes with 3000 or more workers are unchanged. These employers
will still have a staging date between October 2012 and July 2013.
Employers who are part of PAYE scheme of 2999 workers or less will be advised of their staging date in 2012 when these
dates have been confirmed by the Government.
Payroll Businesses
Although research carried out by the pensions regulator suggests that awareness, understanding and activity relating to
workplace pension reforms amongst small and medium sized employers’ is increasing, they are calling on payroll software
developers and advisers to speed up the sharing of details of planned product offerings and delivery timescales.
With this in mind Chartwell Financial Services offer a review and analysis service designed to help both employers and their
advisers prepare for the introduction of automatic enrolment. Our detailed report will provide information on:
 The likely cost that reform will have on your/your clients business
 Guidance on key employer responsibilities
 Advice on an appropriate implementation strategy
A recent amendment to pension tax rules will allow some investors to pay more into their
pensions by carrying forward any unused allowance from 2008/09, 2009/10 and 2010/11 tax years
In April of last year the annual pension allowance reduced from £255,000 to £50,000 and the government introduced a ‘Carry
Forward’ mechanism which allowed investors to exceed this limit providing that total average pensions contributions did not
exceed £50,000 over the previous three year period.
So, where no contributions had been made in the previous three tax years, carry forward allows investors to contribute an
additional £150,000 on top of the £50,000 they can contribute in the current tax year.
This is an important change for investors who have made large contributions in the past and would like to make additional
sizeable contributions.

2. As an extreme example, an investor who contributed £150,000 in 2010/11 would previously have been unable to make use
of the Carry Forward rules in respect of 2008/09 and 2009/10 and therefore restricted to a maximum contribution of
£50,000 in the current tax year. Under the new rules Carry Forward is now available meaning that, theoretically, they could
contribute a further £100,000 in addition to this year’s allowance of £50,000.
HMRC’s previous interpretation of the rules meant that an investor who had contributed more than £50,000 in any of the
previous years raised their average using some or all of their allowance from earlier years. The new interpretation of the
rules means that the annual allowance from earlier years is not used up where the £50,000 limit has been exceeded in
2009/10 or 2010/11.
This is an important change for investors who have made large contributions in the past and would like to make additional
sizeable contributions.
Previous Carry Forward Rules
Annual Allowance Used by Annual Allowance
Contributions Paid
2010/11 Contribution Available
2008/09 £0 £50,000 £0
2009/10 £0 £50,000 £0
2010/11 £150,000 £50,000 £0
Carry Forward
£0
Available
New Carry Forward Rules
Annual Allowance Used by Annual Allowance
Contributions Paid
2010/11 Contribution Available
2008/09 £0 £0 £50,000
2009/10 £0 £0 £50,000
2010/11 £150,000 £50,000 £0
Carry Forward
£100,000
Available
If you have any questions about anything you Important note
have read, please contact: The information in this bulletin is based on our understanding of
tax law and practice at the date of publication, which may be
affected by future changes and individual circumstances. It is
Jon Fisher/Richard Clarke issued as general information and is not intended to be advice to
Chartwell Financial Services Limited any specific person named or otherwise.
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If the information refers to a specific product, it may be based on
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of this publication you are recommended to seek professional
advice. The Financial services Authority (FSA) does not regulate
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Chartwell Financial Services Limited is authorised and regulated by the
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Registered Office: Lindley Court, Scott Drive, Altrincham, Cheshire WA15 8AB
Chartwell Financial Services Limited is authorised and regulated by the Financial Services Authority. Registration number 189602.
Registered Office: Lindley Court, Scott Drive, Altrincham, Cheshire WA15 8AB
January 2012