The minimum amount that employer’s have to pay into a workplace pension scheme is increasing from 6th April 2018 to a minimum of 2% of qualifying earnings. Employees will contribute 3% ensuring a combined total minimum contribution of 5%.
More than 9 million employees, so far, have been auto enrolled into a workplace pension scheme, helping people save for their retirement.
The minimum contributions to be paid are required by law and as an employer you must ensure the minimum contribution is made by both yourself and the employee. However, as the employer you can pay both minimum contributions if you so decide thereby the employee pays no contribution.
As an employer you need to ensure that your payroll and pension provider have put steps in place to pay the increased amounts from 6th April. It is recommended that employers write to staff informing them of the said increase in contributions.
These increases apply whether staff are paying into a pension scheme set up through auto enrolment or you are using an existing scheme. No action is required if you have no employees in a pension scheme for auto enrolment or you already pay above the minimum required.
Further minimum increases will apply from 6th April 2019 to 3% for employer and 5% for the employee, making a total combined minimum amount of 8% of qualifying earnings. These rates will then remain unless the government in future make changes to auto enrolment.
Further information on minimum contribution increases can be found by clicking the link.
Source: The Pensions Regulator
Our Services
-
Access to Finance
If your business is growing, then you may need to access some sort of finance product to facilitate your growth. With so many products available, it can be bewildering. How do you work out how much you need, for how long and which product/or products are right for you?
-
Tax Protection
With HMRC becoming more spontaneous with tax investigations we strongly suggest that every business is insured against the cost of investigation. So strongly in fact, that we automatically build it in to our fixed fee agreements. Many of our clients have been very grateful for this insurance when HMRC have come knocking.
Pop in or give us a call
We'd love to hear from you
When it comes to supporting small enterprises, helping them grow whilst avoiding regulatory and commercial pitfalls, we have a weath of experience, expertise and a kettle - a very good kettle. If you think we could be a good fit, get in touch to see how we can add value to your business.
Contact
About us