It's the year by which every existing UK business that employs staff will by law ... True Bearing Chartered Financial Pl
AUTO ENROLMENT - ACT NOW! The year 2017 might not mean much at first, but it marks an important deadline for small business owners. It’s the year by which every existing UK business that employs staff will by law have to offer – and contribute to – workplace pensions in a process known as auto-enrolment.
Auto Enrolment in a Nutshell… • What - Auto-enrolment is the name given to the mandatory, automatic process of signing your staff up for a workplace pension scheme • Why - It is happening to ensure that everyone is encouraged to provide for later life during their working career • When - Each company needs to have a pension in place by a certain date outlined by the government and depending on the size of the company • Who - Every UK employer and those with staff in the UK are affected, although your staff can choose to opt out if they wish • How - Both the employer and employee make contributions into the scheme
Non-compliant employers will be fined Every business has to automatically enrol eligible workers into a qualifying pension scheme.
If you don’t, you could face substantial fines. In January 2016 the Regulator stated that a total of 1,594 £400 Fixed Penalty Notice fines had been issued to employers. In one particular case, the Regulator issued a compliance notice requiring them to pay both the employer and employee contribution arrears. They failed to comply and were subsequently issued with a £400 fine. In the end, the employer appointed an adviser but by this point, they had incurred additional fines totalling £10,000 (£2,500 per day for four days). In total, their failure to comply amounted to unnecessary fines of £25,400: £400 fixed penalty fine, a £10,000 fine and up to £15,000 in employee backdated contributions.
Does your firm need to take advice? See overleaf to find out
True Bearing Chartered Financial Planners | AUTO ENROLMENT - ACT NOW!
Does my firm need to take advice? The short answer is YES True Bearing Chartered Financial Planners are auto enrolment specialists completing 11 cases in the last month alone. We will guide you through the auto-enrolment process ensuring we save you time and money, and that you are fully compliant with auto-enrolment legislation.
We can help with: Planning:
Enrolment:
• Inform you of your staging date and develop a project plan
• Assess your workforce
• Perform financial analysis of the likely cost of implementation and contributions • Review your existing pension arrangements • Review your HR and payroll systems, ensure specialist software is in place • Consider your pension scheme design, eligibility and probationary periods
• Communicate the changes to employees at staging • Automatically enrol eligible jobholders • Contribute to your workers’ pension • Keep track of age, earnings and eligibility for existing employees post-staging • Automatically enrol new eligible employees post-staging
• Select a suitable qualifying pension scheme
Sense of URGENCY! The regulator recommends that employers should start preparing for automatic enrolment 12 months ahead of their staging date. Sufficient preparation will allow you plenty of time to adjust, ensure your legal obligations are met and most importantly save you money! Finding the right pension is an intimidating process at the best of times so it makes perfect sense if you are a small business owner to call in some professional help in order to guide you through the process and make you aware of your options and obligations, so that auto-enrolment does not become a financial and administrative nightmare for your business. For more information or a free, no obligation initial meeting please contact us using the details below.
True Bearing Chartered Financial Planners is a trading name of True Bearing Ltd. True Bearing is an Independent Financial Advisory Firm, which is authorised and regulated by the Financial Conduct Authority.
