Skip to main content

CH Accountancy
CH Accountancy

01245 791164 | hello@chaccountancy.co.uk

What is auto enrolment and how will it affect my business?

Auto enrolment is a massive change to the business world.  Each employer with employees between 22 and state pension age earning over £10,000 pa will need to enroll their employees on a pension scheme.  The employer and the employee will both make contributions into a pension fund.  The contributions are being staged in, but will be up to a minimum of 3% employer and 5% employee contributions.  Employees can opt out if they wish, and other employees who don’t meet the auto enrollment criteria can opt in.

Sole Director companies are exempt from auto enrollment, but will need to declare the exemption. 

You will receive a letter from The Pensions Regulator with your letter code.  You will need this and your PAYE reference to register with The Pensions Regulator, and complete your Declaration of Compliance.  The requirements of auto enrollment are quite indepth - check what you are required to do and the process here www.thepensionsregulator.gov.uk/en/employers.

It is worth mentioning that if you are a sole director it is beneficial looking into a pension.  You can set it up through your company so both your company and you personally contribute.  Whether it’s through auto enrollment or a separate pension the employer’s contribution is always tax deductible.

 

CH Accountancy are offering a fully managed set up and ongoing service using NEST (www.nestpensions.org.uk), who were set up by the government specifically for auto enrolment.  For more details please contact me on hello@chaccountancy.co.uk

Return to index