New employers and Auto Enrolment

I started a new business back in July and I’ve just taken on a new member of staff because things are going really well. Do I have to pay into a pension scheme for them? 

1st August 2017

Due to new workplace pension rules, every employer in the UK must put qualifying staff into a pension scheme and contribute towards it. This is called 'automatic enrolment'.

If you’ve employed someone since 2nd April 2017 or you’re going to employ someone before 30th September 2017, the date that your duties apply will vary but you can check with the Pensions Regulator here.

On the date your duties start you must assess your staff to see if they meet the age and earnings criteria:

  • aged between 22 up to State Pension Age
  • and earning over £10,000 per year (or £833 per month or, £192 per week)

If they do, you must put them into a pension scheme and both of you must contribute. Even if your staff member doesn’t meet the above criteria, you still have responsibilities under the workplace pension rules.

Your local TaxAssist Accountant can help you to meet your obligations under the workplace pension rules, including running your payroll and liaising with your chosen pension scheme. 

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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