IQ-Magazine-Issue-14

IQ pensions
Auto Enrolment
Are You Ready?
With auto enrolment in the pipeline, Websters looks at how
businesses can comply with the new legislation
Auto enrolment has been in
the media for a while and
communications are now being
sent out via the Pensions Regulator,
but still many small employers are
unsure of their obligations and what
they need to do to comply with this
new legislation.
Gary Eves (FCCA), at websters,
explains what is happening, as well
as when, and what your duties are as
an employer.
The date your automatic enrolment
duties start is called your staging
date and is when the law comes into
effect for you. If you don’t know
your staging date, you can find it
using your PAYE reference and
referring to The Pensions Regulator
website.
There are several tasks you’ll need
to complete before your staging
date. The smallest businesses will
have a staging date in early 2017; it
is advisable, though, to give yourself
plenty of time, not only to plan for
financial implications but also to
plan your strategy of implementing
and running the scheme. Ideally,
you should create an action plan
which will include the tasks you will
need to complete along the way and
will include a communications plan
for your employees.
Larger employers will probably
seek the assistance of independent
pension providers in order to
administer the scheme; there will,
however, be a cost for this service
and many smaller businesses will
want to minimise additional fees.
If you are a small employer and
do not have access to a company
pension scheme, you may want
to investigate NEST. This is the
National Employment Savings
Trust. It is a pension scheme that
is primarily aimed at low to medium
earners and small employers.
As part of your planning, you will
need to assess your workforce to
decide whether they’re treated as
‘workers’. There are three different
categories you can base your
decisions on, which are determined
by your workers’ ages and how
much they earn.
As with all government schemes,
there are ongoing duties. These will
require you to maintain your chosen
pension scheme and keep certain
records. You will also need complete
a declaration of compliance to show
you have an auto enrolment scheme
in place by at least five months after
your staging date. Further into the
scheme, there are other obligations
which you will need to be aware of.
This is not an optional scheme for
any employer, however large or
small. You are obliged to ensure that
you comply with the duties outlined
in the scheme, and although The
Pensions Regulator states their
approach will be to educate and
encourage compliance, you will face
fines or even imprisonment if you
don’t comply.
If you are unsure as to the next
steps for your company, whether you
employ thirty people or just one,
please get in touch and we can help
you on your way.
More Information
Contact websters on 01223 507080 or go to www.tax.uk.com
issue 14 | page 19