Whether you employ one member of staff or a factory-full of staff, a cleaner, carer, gardener or bookkeeper… you MUST provide the opportunity for a workplace pension; you have no choice on this. The government has rolled out Auto Enrolment and you’re caught up in it if you employ anyone. Sorry this is not nicer news and sorry too that the cost impact will hit SMEs and individuals hardest.
Here at our office, staff have been absorbed in training, software has been updated and every nook-and-cranny of the rules and penalties examined. We know how to handle this and will help you. Even if we don’t currently do your payroll, we will offer you free advice and provide your all-important STAGING DATE (this is what starts you along your journey of obligations to HMRC). Just get in touch.
An insight that may be useful for now is to know who in your employment, needs what action from you (or your Accountant/HR etc)
Eligible Jobholders:
(they will be ALL of the following)
- Are not already an active member of a qualifying scheme
- Work or usually work in the UK
- Earn more than £10,000 a year*
- At least 22 years of age but under State Pension age
*The figure of £10,000 applies to the 2014/15 tax year and will be reviewed every year by the government.
Non-eligible Jobholders:
Non-eligible jobholders are workers in the UK aged between 16 and the State Pension Age and earning upwards of £5,772 but not fitting into the category above.
A non-eligible jobholder is entitled to opt into a Qualifying Workplace Pension Scheme from the Staging Date and so must be provided with information on how to do this in advance. If they do opt in, then employers must pay contributions to this scheme for them at a level set out in the legislation.
Entitled workers:
Entitled workers are workers in the UK aged between 16 and 74 and who earn less than £5,772
(2014/15 figures).
An entitled worker is entitled to access to a pension scheme and the employer must provide them with information in relation to this in advance of their staging date. The scheme that they are given access to, does not have to be the same scheme that eligible and non-eligible jobholders are given and the employer does not have to pay any contributions to the scheme in relation to them.
So that’s a start; look into your employment records as soon as possible and establish which category each staff member falls into. Then get in touch if you don’t already know your Staging Date and we’ll sort it for you. We’d recommend popping in for an entirely free consultation so we can be sure you aren’t going to get hit by fines and worse, for non-compliance. Really, you CAN’T IGNORE THIS. Sorry.
Ilyas & Team
info@taxexpert.co.uk
01772 788200
www.taxexpert.co.uk