Posts Tagged ‘Auto enrolment’

Pensions – minimum contributions to increase

Thursday, March 15th, 2018

From 6th April 2018, overall minimum contributions into qualifying pension schemes are set to increase. The minimum contributions are set to increase again from April 2019 and could represent a significant increase for some employees.

The current rates and contributions for the next 2 tax years are as follows:

 

Date effective                   Employer min. cont’n                           Staff  cont’n                      Total min. cont’n

 

Until 5 April ’18                  1%                                                          1%                                          2%

6/4/18-5/4/19                    2%                                                          3%                                          5%

6/4/19 onwards                 3%                                                          5%                                          8%

 

Note that the employer must contribute a minimum amount and that overall a minimum level of contribution should be met. There is no requirement for the employee to contribute anything if the employer pays in full the total minimum contribution.

It can be seen however, that in many cases, employees will move from making 1% contributions to 5% in 2019. We are urging people to be aware of this and encouraging them to make provisions for these changes.

Both employers and staff are permitted to pay in more than the minimum contributions if so desired (with an upper limit of £40,000 contributions per annum).

It is important that if you operate a payroll scheme on behalf of your employees, that you ensure the correct rates are applied and the right amounts are paid into the qualifying scheme.

There are rules concerning pension schemes which aren’t qualifying and therefore cannot be used for automatic enrolment. We can help you understand these rules and if desired, ensure that you put measures in place to remain compliant within auto enrolment.

We can advise on your requirements under automatic enrolment and how the new pension rules affect businesses. Please contact Helen.Sewell@curoca.co.uk or Nicola.Lee@curoca.co.uk to understand your requirements and any actions you need to take.

Further information on pensions auto enrolment can be found on www.thepensionsregulator.gov.uk

Take a look at how we can help your business further.

minimum contributions

Top 3 payroll /pension auto enrolment questions

Monday, June 6th, 2016

Top 3 payroll & pension auto enrolment Q&A

We presented on payroll and pension auto enrolment recently at the Herefordshire & Worcestershire Chamber of Commerce Bromsgrove networking lunch. Despite this issue affecting the vast majority of employers, we found that many were still unclear on some points. Here are the top 3 questions we answered:

Question 1

“Can I opt out of auto enrolment via my employer?”

Answer: “Yes, you can. You’ll need to let them know by following the opt out procedures outlined in your auto enrolment communications”

Question 2

“I am a single director company; do I need a pension scheme under auto enrolment?”

Answer: “No, there is no requirement to set up a pension scheme if you are a single director company with no other employees. However you still have employer duties with the pensions regulator”

Question 3

“I am a single director company, am I eligible for the employers allowance?”

Answer: “No, single directors companies with no employees are no longer eligible for the employers allowance from 6th April 2016”

 

We faced other questions which apply to the majority of employers and would be happy to discuss these in more detail with you.  Please contact our payroll and pensions team with your queries – Helen.Sewell@curoca.co.uk or Nicola.Lee@curoca.co.uk or call 01527 558539.

Auto enrolment – act before it’s too late

Monday, June 8th, 2015

Nearly all employers are affected by the new rules around pension auto enrolment (‘AE’) yet recent statistics show that a worryingly high number have still not done anything about it.

It’s called ‘automatic’ because the employee is automatically enrolled onto a workplace pension scheme. Unfortunately, it’s not automatic for the employer – this is an obligation.

Each employer has a ‘staging date’ which is when the AE duties come into force. Smaller businesses ‘stage’ last and each staging date is based on the employer PAYE reference.

If a workplace pension scheme already exists, you’ll need to check it’s compliant with the new rules; if it is, there may be no requirement to set up a new scheme.

Employers are required to complete and submit a ‘Declaration of Compliance’ form to the Pensions Regulator, confirming that it has adhered to the new rules. Non-compliance will result in a fine and hundreds of fines have already been issued.

There are some exceptions – not all employees need to be automatically enrolled.

Our tax professionals are currently working with several clients to ensure they meet their auto enrolment requirements.

We can help you understand your obligations and ensure your business is compliant with the new rules. Please contact Helen.Sewell@curoca.co.uk or call Helen on 01527 558539 for some clear advice on this issue.

Alternatively, visit The Pensions Regulator website for more information..

Pension auto enrolment – don’t leave it too late!

Monday, June 23rd, 2014

You may have noticed that there has been increased coverage in the press recently regarding work place pensions. This is due to new legislation which means that every employer must automatically enrol workers into a workplace pension scheme if the employee:

•  is aged between 22 and State Pension age and
•  earns more than £10,000 a year and
•  works in the UK

Please note that if an individual is a director for a company and has no other employees they will not be covered by the new legislation.

Employers’ obligations

The new legislation is being phased in over a number of years with the largest employers having to comply first. All employers will be allocated a staging date and you will need to ensure that you have a qualifying pension scheme in place by this date. Even if you already have a pension scheme in place, it may not be accepted as a qualifying scheme under the new regime – your pension provider will be able to confirm this with you.

Once a pension scheme is in place, employers will need to enrol qualifying employees into the scheme, ensure the correct premiums are being deducted and paid into the scheme and manage requests from employees to opt in/out of the scheme.

Employers recognise that the administration burden on them is likely to be onerous with fines being levied if it is not done correctly. In view of this, a large number of employers are turning to pension companies and brokers for help and so even if your staging date is a little while away, we would recommend that you get organised sooner rather than later as many pension providers and advisers are likely to reach client capacity.

What to do now?

There is a full range of pension products available for employers ranging from the Government’s own NEST scheme to more sophisticated schemes run and managed by pension companies and brokers. The pension regulator provides some useful information for employers regarding staging dates, planning tools, scheme options, timelines and eligibility etc.

Our payroll department works closely with pension providers which will help ensure that our payroll clients are fully supported during the implementation of the new legislation and that they are fully compliant moving forward.

If you would like any information about our payroll services or the pension providers please contact Helen Sewell who will be happy to advise you.

And……….relax!

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Pension Auto-Enrolment and RTI – Consider Them Together?

Tuesday, October 2nd, 2012

On a phased basis which started on 1 October 2012, employers will be required to automatically enrol employees into a pension scheme, starting with the largest employers first.

If you’ve not already had a letter, the Regulator will write to all concerned 12 months before the ‘staging date’ with details of what is required so in theory there should be enough time to arrange for new software and systems.

Alongside auto enrolment is Real Time Information in which employers report payroll figures in ‘real time’ from April 2013 to HMRC, rather than after the year end. RTI will come in first for most SME businesses but it is still worth considering what payroll and reporting systems you use to ensure data is captured and reported in the most efficient way for both RTI and auto enrolment purposes.

If you’d like to discuss your RTI and auto enrolment requirements and what the new systems mean for your business, please get in touch with Helen Sewell on 01527 558539 or email Helen on helen.sewell@curoca.co.uk

Curo Chartered Accountants
www.curoca.co.uk

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