Recent changes to Pensions legislation require all employers to provide a pension scheme for their employees. This “Auto Enrolment” is now an obligation for all businesses with exception of one-man band companies.

New Businesses will be required to auto enrol relevant employees as at the date that the business makes its first payment to the employees. There are exceptions and additional procedures for businesses to follow so please contact us for further information.

For automatic enrolment there are minimum contributions you must pay in order to comply with your duties. These are a percentage of earnings and are shown in the table below.

Date Employer minimum
Contribution		 Total minimum
contribution
Before 05/04/18 1% 2%
06/04/18 – 05/04/19 2% 5%
06/04/19 onwards 3% 8%

Your worker may also wish to pay additional pension contributions, which you will need to make sure you deduct and pay to the scheme on time. Ongoing automatic enrolment responsibilities: www.tpr.gov.uk/ongoing

After you have automatically enrolled your staff members, they may ask to ‘opt out’ of the pension scheme. You must then stop deductions of contributions and arrange a refund of any contributions they have paid to date.

You must set up a workplace pension scheme before your staging date if you don’t already offer one. If you already have a pension scheme,  you may be able to use that scheme. TWP Insight can advise you on your obligations and assist you in complying with the new rules.