Barratt, the house builder firm, has introduced a company individual savings account (Isa) for employees.
The Barratt Isa, which is provided by Legal and General, will offer employees the same tax efficiency as a personal Isa, but with lower management charges and the ability to make payments via payroll deductions.
The Barratt Isa is one of the first regular savings Isa plans to be launched following the increase in Isa allowances, which came into force on 6 April this year.†
It is a stocks and shares Isa with an annual allowance of £10,200 for the 2010/2011 tax year and has no income tax or capital gains tax, enabling employees to potentially save substantially on investment returns.
Jayne Mee, people and customer experience director at Barratt Developments, said: “We are continually looking to improve the benefits and rewards we offer to our employees and that is why we are excited to be launching the first ever corporate Isa.
“They will be able to take advantage of low management fees and make payments from payroll deductions as part of this highly competitive way of saving for the future.”
Chris Noon, partner at Hymans Robertson, which advises Barratt on its benefits strategy said: “Corporate Isas offer employees the convenience of regular saving through the payroll along with the benefits of lower fees through company-negotiated rates and improved governance.
“We expect such arrangements to become a regular feature of leading employers’ benefits provision, as companies’ benefits strategies evolve to suit the needs of today’s employees.
“Recent changes to high earners pension taxation has made such products more attractive, as there could be an advantage from employees being able to allocate employer pension funding to an Isa rather than to their pension scheme. However, they are equally relevant for any employees with short-term savings needs such as saving for a house deposit.”
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