Auto-enrolment can’t get any easier with The Accounts Centre by your side… saving you from hefty fines and hours of unnecessary extra work.
With on the spot penalties starting at £400 and daily penalties ranging from £50-£10,000 (depending on how many staff you have) it’s imperative your business has the correct pension auto-enrolment procedures in place.
According to government statistics, over 7 million people in the UK aren’t saving anything (or enough) for when they retire.
The new auto-enrolment laws aim to make sure that more people are saving more money for when they do finally retire.
Does it affect my business?
Every business in the UK that employs at least one member of staff will be obligated to auto-enrol eligible staff members into a qualifying pension and will have to make a contribution into that scheme.
You’ll need to assess your workforce to decide who exactly will be eligible for auto-enrolment.
‘Eligible jobholders’ must be…
Working in the UK (or usually working in the UK).
Between the ages of 22 and the SPA (State Pension Age).
Earning above £10,000*p.a
Walk you through the tricky tax traps that could catch you out and that most business owners don’t know about.
*This threshold is reviewed and subject to change on a yearly basis.
As an employer, you will be required to give your staff prior warning about the scheme (via written letter) and to allow non-eligible jobholders to opt in too.
You should start considering auto-enrolment right now, but at the latest, 18 months prior to your staging date.
The staging date will depend on what the size of your PAYE scheme was in April 2012 (the more people, the earlier your staging date over the six years).
If you require any assistance in finding your staging date, or would like further information on auto-enrolment, feel free to give our wonderful team of accountants a call today on:
0151 3800104 (Liverpool) 01829 332010 (Chester)
So what is required to avoid hefty fines and get my employees on this compulsory scheme?
The Planning Stage:
1. Find out your business’s staging date.
2. Evaluate who’s eligible for auto-enrolment out of your employees, based on age, salary and location.
3. Organise your records using your current payroll software, making sure that they’re up to date and easily accessible. Including: D.O.B, NI Number and the latest contact details for the pensions regulator and scheme provider.
4. Choose a pension scheme. If you already provide a pension scheme, double-check to see if it qualifies under the auto-enrolment regulations. If not, you need a new one and quick.
Your Staging Date:
5. Let your staff know via a formal letter, informing them how it works and how they can opt out if they wish to.
6. Inform your pension scheme provider.
7. Let the Pensions Regulator know and complete a declaration of compliance to inform them that you’ve met the auto-enrolment regulations.
8. Start contributing between 2% and 8%, depending on your business.
9. Maintain your records ensuring that employees who become eligible (e.g. those who turn 22) are opted in automatically.
10.Re-enrolment. Every 3 years, you need to re-enrol eligible staff members, whether they’ve previously opted out or not) – you will have to start at step 1 again.
A real pain, right?
Unfortunately this is compulsory, but it doesn’t have to be something you need to think about…
At The Accounts Centre we’re more than happy to give you a helping hand.
Set up and support you through the entire process.
Find your staging date
Inform your staff
Keep your records up to date with advanced software.
Save the grief, time and hassle out of the whole process, so you can focus on the important aspects of your business.
Whether you’ve got a pensions auto-enrolment already in place, or not, give us a call today on 0151 3800104 (Liverpool) or 01829 332010 (Chester) – and find out how The Accounts Centre can improve and take the hassle out of your pensions auto-enrolment scheme.
You wouldn’t want to get a penalty would you?
“I continue to recommend The Accounts Centre for sound and reliable business advice”
“I have known Liz for well over a decade and when I set up my business there was no doubt who I would turn to for business advice. The team at The Accounts Centre is always on hand to respond to queries and continues to provide my business with a first-class tax & accountancy service. It is a relief to know a team of professionals are working for you and thus helping you to focus on your customers. I continue to recommend The Accounts Centre for sound and reliable business advice.”
Patrick Ralison Patrick Ralison 19th July 2018
“Professional and dedicated service.”
“As a client for some years, The Accounts Centre have always provided me with a professional and dedicated service.”
Neil Pownall 19th October 2016
“They will help you to save money on your tax”
“We have worked with The Accounts Centre for over a year now and they offer very good professional advice not only to my business but also those of my clients. They will help you to save money on your tax and are very approachable and helpful. We fully recommend them.”
Helen LucyDirector, Prosper (NW) Limited19th October 2016
Who is Liz Aspin?
Liz is founder and Chief Executive of The Accounts Centre; a world-class, accountancy firm in the North West, (serving local SMEs in Liverpool, Wrexham and Chester).
With over twenty years’ experience and almost ten years’ running her own business, Liz is a prime example of someone who’s ‘been there, done that’ and knows all of those tricky little tax traps that business owners fall into and how to avoid them.
Liz uses her innate gifts for finance, tax strategy and entrepreneurship to provide a unique perspective on business and far from the ‘stuffy’ and ‘formal’ introverted accountants of old, spouting financial jargon and gobbledygook, focuses on getting to know her clients and their accounts and proactively seeking ways to save them money.
It’s not just about tax-strategy and accounting; it’s about adding real value to local businesses.
If you have any questions or would like further advice on how to avoid overpaying your tax this January, give Liz a call on 01513 800 104 (Liverpool) or 01978 600 103(Wrexham) or 01829 332 010 (Chester)