Auto-Enrolment Pensions

Auto Enrolment will land heavily on the doorstep for the majority of small businesses in 2016 and 2017. Do not bury your head in the sand! It is real and it is here. Take action sooner rather than later!

Regardless of the size of your business and who gets paid, if you have a PAYE scheme in place you will have a Pension Staging date. It is as simple as that. Even if it is simply a payroll for Directors only - it still applies and you still need to do something about it. You will receive, or already have, a letter from the Pensions Regulator.

Do not ignore it as there are no acceptable excuses - You will be fined heavily and could even face prosecution!

What do i need to do?

  1. Find the letter from the Pensions Regulator and make sure your contact details are correct. If you have lost the letter call the Pension Regulator straight away. They will issue a duplicate.
  2. Find out your pension staging date – you cannot be late in getting ready for the staging date as you will incur both a one-off and then daily fines.
  3. Identify a Pension provider as soon as possible. And remember that a lot of the pension companies are overwhelmed and are not accepting smaller companies into their schemes. You may have to choose some of the “capture all” pension providers like, among others, Simply Pensions, Now Pensions, Nest, Peoples Pensions, etc. Make sure you shop around for the best deals for your employees and get independent  advice if need be.If you have employees, you must check your workforce status. Gather together all their details like name, date of birth, hours, salary, etc. Make sure all your employees records are up to  date.
  4. Identify your employee’s eligibility, it is  based on age and earnings – and beware. Eligibility can change at each pay period as age changes and earnings can too!
  5. Familiarise yourself with jobholder definitions:     
    • Eligible jobholder:  Must be automatically enrolled into auto enrolment scheme and both employer and employee contribute.
    • Non-eligible jobholder:  Employer must provide the employee with information about the auto enrolment scheme, and if the employee chooses to opt in both the employer and employee contribute.
    • Entitled worker:  Employer has to write to employee to inform them of the pension scheme. If the employee chooses to opt in the employer does not have to contribute.
  6. Each stage of the process involves a letter-writing exercise and an employer should keep a record of this. This is vital, as an employer will rely on this documentation as evidence if an employee says they knew nothing about a pension scheme and were never offered one. There are serious fines for not communicating with your employees about Auto Enrolment initially and ongoing.

It is an employer’s legal obligation to issue a statement of main terms within 2 months of an employee commencing employment – employers without contracts need to get them in place now. Statement of main terms needs to include the pension details. Policies need to include mention of pensions, rollout and communication process, including opt-out procedures.

If you are unsure, have any questions or require our help, please do not hesitate to call us on 0208 858 4303 or email on info@finsburyrobinson.co.uk.

Looking for an Accountant who is Auto-Enrolment Ready?  See our Service:   Auto Enrolment

Find out how much April's rise in Auto Enrolment Contributions will cost your business

Regardless of the size of your business and who gets paid, if you have a PAYE scheme in place you will have a Pension Staging date. It is as simple as that. Even if it is simply a payroll for Directors only - it still applies and you still need to do something about it. You will receive, or already have, a letter from the Pensions Regulator.

Regardless of the size of your business and who gets paid, if you have a PAYE scheme in place you will have a Pension Staging date. It is as simple as that. Even if it is simply a payroll for Directors only - it still applies and you still need to do something about it. You will receive, or already have, a letter from the Pensions Regulator.

Do not ignore it as there are no acceptable excuses - You will be fined heavily and could even face prosecution!

Automatic ENrolment Compliance

What do i need to comply?

Find a Provider

Identify a Pension provider as soon as possible. And remember that a lot of the pension companies are overwhelmed and are not accepting smaller companies into their schemes. You may have to choose some of the “capture all” pension providers like, among others, Simply Pensions, Now Pensions, Nest, Peoples Pensions, etc. Make sure you shop around for the best deals for your employees and get independent  advice if need be.If you have employees, you must check your workforce status. Gather together all their details like name, date of birth, hours, salary, etc. Make sure all your employees records are up to  date.

Evaluate & Enrol Employees

Identify your employee’s eligibility, it is  based on age and earnings – and beware. Eligibility can change at each pay period as age changes and earnings can too!

Submissions & Ongoing Evaluation

The VAT return is calculated from the digital records maintained in the functional compatible software, and a business will need to confirm the return is correct before sending it to HMRC.

Rates

Auto Enrolment

About Us
Auto-enrolment contribution rates 2018/19

Our table highlights what the different parties must contribute to auto-enrolment pensions.

Period Employer Minimum Contribution Staff Contribution Total Minimum Contribution
Until 5th April 2018 1% 1% 2%
6th April 2018 to 5th April 2019 2% 3% 5%
6th April 2019 Onwards 3% 5% 8%

AE & Payroll Package

Although the Making Tax Digital (MTD) regime has suffered several setbacks and delays, MTD for VAT remains on course to take effect from its planned implementation date of 1 April 2019.

Under the scheme, VAT-registered businesses are required to maintain digital records,complete the VAT return from the digital records and send it electronically to HMRC.

Our Solutions
Payroll & AE Package
FROM
£
102
P/M
Monthly Payroll and Auto Enrolment Pension Management and Compliance Service.
read more
Payroll & AE Package
FROM
£
85
P/M
Monthly Payroll and Auto Enrolment Pension Management and Compliance Service.
read more
Frequently Asked Questions

Auto ENROLLMENT Pensions FAQS

What do I need to get in place?

It is an employer’s legal obligation to issue a statement of main terms within 2 months of an employee commencing employment – employers without contracts need to get them in place now. Statement of main terms needs to include the pension details. Policies need to include mention of pensions, rollout and communication process, including opt-out procedures.

Who needs to be enrolled?

Most workers in the UK are going to be automatically enrolled into a workplace pension scheme by their employer. From the date they’re automatically enrolled they’ll have a month to choose not to join, or ‘opt out’. If they do nothing they’ll be enrolled in the scheme. They’ll make contributions to their retirement pot from their pay for as long as they’re employed or until they take their money out.Workers and employers can both contribute into NEST to build a retirement pot that’s invested on behalf of the worker. Workers who earn over a certain amount are entitled to a minimum contribution into their pot when they’re paid.

  • Eligible jobholder: Any staff member earning over £10,000 PA must be automatically enrolled into the pension scheme and both employer and employee contribute. If the staff member is below 22 or above the state pension age they have the choice to opt in or out.
  • Non-eligible jobholder: Any staff member earning between £6,032 to £10,000 PA  do not automatically need to be enrolled but the employer must provide the employee with information about the auto enrolment scheme, and if the employee chooses to opt in both the employer and employee contribute.
  • Worker without Qualifying Earnings:  Any staff member earning below £6,032 can ask to enrolled in the pension scheme. The employer has to write to employee to inform them of the pension scheme. If the employee chooses to opt in the employer does not have to contribute.
Can I delay enrolment for a probationary period?

You are able to delay a new employee going into the scheme during a three month probationary period. Remember, that if you do this you must have documented it clearly.  Note that whatever the length of the probation period, workers should be enrolled after three months.

Can I opt out of AE if my payroll is just for the directors?

If your payroll is simply for Directors and you all chose to opt out you are able to communicate with The Pensions Regulator and advise them immediately. This is normally accepted by them in the form of an email but you will require the reference number on your Pension Regulator letter. It does also mean that you will not have to source a Pension Provider.

Find Out More about our Auto Enrolment Solutions

We give tailored quotes as every client is different. We make sure you get exactly what you need whilst bringing excellent value. If you are interested in getting a quote, please call us on 0208 858 4303, send an email to info@finsburyrobinson.co.uk or click the link below to fill out our online form.
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Finsbury Robinson
237 Westcombe Hill
Blackheath
London
SE3 7DW