Auto Enrolment Pensions
Auto Enrolment legislation covers all organisations that employ at least one person, how will this impact your business?
An overview of Auto Enrolment Pensions
All companies who have a payroll scheme will be in scope for the new Auto Enrolment legislation. This includes single director companies also.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. If you employ at least one person you are an employer and you have certain legal duties.
When does Auto Enrolment legislation come into force?
Your company will have a date called your ‘staging date’ which is the deadline for you to have a pension scheme in place.
Check your staging date:
What do I need to do, and how do I do it?
Simple. Whether you employ staff is the main consideration, see below for definition. You fall under one of two categories
1) Employ Staff = you need to setup a comparable Auto Enrolment pension scheme (please get in touch with us as we can advise and setup cost effectively)
Definition of “staff”
Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:
- you’re a sole director company, with no other staff
- your company has a number of directors, none of whom has an employment contract, with no other staff
- your company has a number of directors, only one of whom has an employment contract, with no other staff
- your company has ceased trading
- your company has gone into liquidation
- your company has been dissolved
- you no longer employ people in your home (cleaners, nannies, personal care assistants, etc)
Automatic enrolment duties will apply if more than one director has a contract of employment.
What solution do Next Level Business offer?
At Next Level Business we can offer a fully compliant pension setup for you and your business along with the ongoing management of the contributions and payments to the pension provider. We provide a one stop shop service on a low fixed price basis so you can focus on getting back to business.
We recommend this service alongside the operation of our digital payroll service. Get in touch to discuss a tailored proposal for your business.
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