Do you as an employer understand your legal responsibility when it comes to Auto Enrolment?

Financial Advice Brighton

Do you as an employer understand your legal responsibility when it comes to Auto Enrolment?

Auto Enrolment

More than 5.4 million workers have been automatically enrolled into a workplace pension by almost 61,000 employers by 2012. By the time the process is complete in 2018, it is estimated that around 9 million workers will either be newly saving or saving more into a workplace pension thanks to the policy.

The latest round of advertising from The Pensions Regulator (TPR) focusses on ‘micro’ employers; such as families who hire a nanny or a Ltd company with one employee other than a Director. Furthermore, the same rules apply to these employees as to those from bigger businesses. If you don’t enrol them into a suitable pension scheme – you will be liable for a fine from TPR. Around 26,000 late compliance notices have been handed out. However, only 5% of these have escalated to tribunal stage. Reasons given for non-compliance include a member of staff being ill, relying on someone else to do the work, not receiving any information and companies making a mistake. For clarity, none of these are valid reasons and will not count in your favour at a tribunal!

Avoid the fine

First of all, the only way to avoid a fine is to ensure you are ready to enrol your employees in time for your staging date. We advise a minimum of 6 months preparatory time to look into your options and discuss with your employees the process and your plans. Below is a reminder on the enrolment criteria:

  • Aged between 22 and state pension age.
  • Earn at least £10,000 a year.
  • Work in the UK.

Now, for more information on Auto Enrolment or to have one of our advisers present to you and your employees; please email [email protected] or call 01273 208813.

Our Auto Enrolment key fact guide can be found here.

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IEP Financial is authorised and regulated by The Financial Conduct Authority (FCA)

The value of investments can fall as well as rise and past performance is not a guide to the future.  The content of this publication is for information only. It does not represent personal advice or a personal recommendation, and should not be interpreted as such. Please do not act upon any part of it without first having consulted an Independent Financial Advisor.