If you are a still in the early stages of business, the obligatory Auto Enrolment workplace pension scheme that the government imposed from 2012 may well be off your radar.
Firms on a PAYE scheme set up after 31 March 2012 are classed as ‘new employers’ under The Pensions Regulator and will be shortly reaching their staging date (see table below), it is imperative that you are ready.
|
New employer – PAYE income first payable between
|
Staging date for Auto Enrolment |
| 1 April 2012 – 31 March 2013 | 1 May 2017 |
| 1 April 2013 – 31 March 2014 | 1 July 2017 |
| 1 April 2014 – 31 March 2015 | 1 August 2017 |
| 1 April 2015 – 31 December 2015 | 1 October 2017 |
| 1 January 2016 – 30 September 2016 | 1 November 2017 |
| 1 October 2016 – 30 June 2017 | 1 January 2018 |
| 1 July 2017 – 30 September 2017 | 1 February 2018 |
The Pensions Regulator are warning firms reaching their staging date that they are ill advised to ignore the ‘workplace pension’.
Non-compliance can lead to fines of £500 a day for employers of 5-49, £50 per day for 1-4 employees. 26,000 compliance notices were issued between July & September 2016, and although only 5% of those progressed to an escalating penalty notice it’s still 1300 over a three month period*
Take action sooner rather than later as there is a lot to prepare and consider. Early action can make the difference in being able to benefit from the most cost effective and appropriate scheme long term.
Clarke Nicklin Financial Planning specialise in Auto Enrolment, and have advised many companies on this. The pension review we perform helps you to clarify all options and implications, whilst advising on the best alternative which could result in significant cost savings or benefits.
We would be delighted to hold a free initial, no obligation meeting. Call 0161 495 4700 and ask for Kath, or email katha@cnfp.co.uk .
Source *http://www.thepensionsregulator.gov.uk/docs/automatic-enrolment-use-of-powers-sept-2016.pdf
