Changes to Auto Enrolment

September 22, 2014 3:13 pm Published by

Did you know that the law on Workplace Pensions has changed? Every employer (including Service Users or Clients) must automatically enrol workers (this includes Personal Assistants) into a Workplace Pension Scheme who:

  • Are not already in one
  • Are aged between 22 and State Pension age
  • Earn more than £10,000 a year
  • Work in the UK

Employers will gradually enrol all eligible workers into workplace pensions between 2012 and 2018. Click here to find out if you’re likely to be affected.

If you are self-employed or the sole director of your own company, you won’t be automatically enrolled into a workplace pension.

Millions of workers are being automatically enrolled into a workplace pension by their employer. Once you’re enrolled, not only will you pay in to it but so will your boss and the government.

Take John for example…

John puts in £40, his employer puts in £30 and the government adds £10 tax relief.

A total of £80 will be paid into John’s pension.

This is to make it easier for you to start saving. You can opt out if you want to, but that means losing out on employer and government contributions – and if you stay in you’ll have your own pension that you get when you retire.

You can get more information on what your employer can and can’t do here

If you’re an employer, you need to act now to prepare. Visit The Pensions Regulator website.

Fran Tyler

Fran heads up First Call Financials. She has over 40 years’ accountancy experience and is a Fellow Member of the Association of Accounting Technicians.

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This post was written by Fran Tyler

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