• By Malcolm Anderson
• Published 01/25/2012

What is it?

The workplace ISA allows employees to access payroll deduction, as well as the ability to make one-off payments directly into the ISA and consolidate existing ISA savings. Employees will also benefit from significant savings on fund charges and access to over 1200 funds.

Research from the Scottish Widows 2010 Workplace Pensions Report showed individuals are looking for options in addition to regular pension contributions when planning for their retirement, with 46% having taken out a cash ISA and 17% a stocks and shares ISA.

So if you run or manage a business, how does the workplace ISA work for you?

“ We want to help our employees with their savings”

Our company already offered a pension scheme, but we wanted to do more to help our staff save for the future. ISAs were an appealing idea, as they combine tax benefits with easy access. It’s a lot easier persuading people to put some money aside when they know they can get at it before the age of 55! We chose a Workplace ISA because it’s also an easy savings option. There’s often a straightforward online application process – and the money comes out of our employees’ salaries before it hits their bank accounts.

“ Our employees want to save for the future but many need help making their investments”

The Workplace ISA offers appealing tax benefits and time savings. However, we were also interested in the management of the investment range. Instead of confusing people with hundreds of funds, We went with an experienced investments provider who had obviously thought more deeply about the process. Advanced investors can do their own thing, as you’d expect, but those with less knowledge can get a little help with their decisions. It means there’s one less hurdle in getting people to start saving.

“ We want attractive benefits that are easy to manage”

With the Workplace ISA, our provider handles the payroll deduction for us and carries out a full reconciliation and query resolution process every month to ensure that everything is paid correctly.

They also helped us promote the benefits of the Workplace ISA with a free range of communications

and investment guides.

“ It’s a great way to reward our Executives”

The significant reduction in the Annual Allowance for pension schemes (to £50,000) meant we were looking for other ways to recognise the value of our Executives. The Workplace ISA was a great option as it offers valuable tax advantages, plus a competitive fee structure that recognises the buying power of our organisation

About the Author: Malcolm Anderson: independent journalist writing about ISA options.