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 [email protected] or call Helen on 01527 558539 for some clear advice on this issue.