You may have seen the recent TV advert from DWP regarding Pension Auto Enrolment for businesses. The cuddly character in the image above is being used to drive home the message.
The government is trying to encourage more of us to save for our future and have additional income to the state pension.
Through Auto Enrolment if you employ at least one member of staff then you will have to create a Pension scheme and enrol your staff onto it.
If you are a director of a business that has no employees then the rules don't apply to you. If you are a husband & wife company then providing neither of you has a contract of employment the rules don't apply to you.
Up until September 2017 a minimum of 2% of qualifying income has to be paid into the scheme. By October 2020 this will have increased to 8%.
Whether this contribution comes solely from the business or is split between employer and employee is up to the employer to decide.
All employees have the right to opt out of the pension if they so wish. But as an employer you can not force your employee to opt out.
We provide a number of services for our clients surrounding pension auto enrolment and payroll.
If you would like to find out more about pensions and whether your business has to set-up a scheme get in touch with us:
Member since: 8th October 2015
Working at Bradleys Accountancy Practice in Hednesford. A family run accountancy firm since 1991.