We offer independent, whole of market advice on auto enrolment into a workplace pension throughout London & the South East from our bases in Ashford Kent and central London. We are here to help! White Paper on Auto Enrolment
Facts & Figures MD Simon Webster hosts a weekly radio show on www.channel radio.co.uk called Money Talk he did a show on Auto Enrolment in 2015, two useful segments are linked below. Please remember to turn on your computer’s speakers…
From October 2012 the face of UK pensions changed forever. Employers became legally obliged to auto enrol their staff into a workplace pension plan – instead of merely presenting them with information or leaving them to ask to join one. Auto enrolment is being phased with the largest employers going first with smaller firms “staging” somewhat later – dependent on company’s PAYE reference number.
Advance planning is essential – particularly for those firms setting up long term supply contracts. A 3% payroll levy half way through a contract could have a major impact on contract profitability. In addition employers will have re enrol their eligible workers every three years and keep records to prove they did! The onus will be on employers to keep comprehensive records and the fine for non compliance could be anything from £500 – £50,000 plus £10,000 a day!
The idea is that once in inertia will encourage the huge numbers with no pension provision to start saving for their retirement as a result of being automatically enrolled into a pension. The key point is that once fully implemented the employer will have to contribute at least 3%, the employee 4% and the government will offer a 1% tax break equivalent to basic rate relief on employee contributions. It is also worth noting that the employer will receive corporation tax relief on their element of the contribution and that NI is not charged on pension contributions.
The rules are employees must be auto enrolled into a workplace pension – not auto enrolled into Nest. We regard Nest as unsuitable for many employers.
We offer a consultancy service on implementing auto enrolment into workplace pension as well as a support & administration service for those employers who need to review existing or implement a new workplace pensions.
Call Simon on 01233 722922 for further information.