Auto Enrolment

8 May 2018

Anyone with any employees should now be familiar with auto enrolment and the need to provide a workplace pension to qualifying staff.

Any new employers will now face their obligations immediately, and all existing businesses will have already met their staging date.

Whilst for many smaller employers, the process of setting up and running a scheme has only just begun, it is worth reminding you that your obligations continue, and the amount you will have to contribute has now increased as of 6 April 2018.

Contributions to auto enrolment schemes were always intended to be phased in, and the first increase to these minimum contributions have now been implemented as follows:

Contribution phasing period

Minimum employer contribution

Minimum total contribution (gross)

Staging date to 5 April 2018

1%

2%

6 April 2018 to 5 April 2019

2%

5%

6 April 2019+

3%

8%

 

The government is also planning on increasing the scope of auto-enrolment in the future. At the moment those under 22 do not automatically qualify, whereas the proposal is to drop this age to 18. Proposals are for this to begin in around ten years and is therefore some way off but it is certainly worth noting for your long-term planning.

If you would like more information on auto enrolment and how Old Mill can help you and your business, please get in touch.

  • For further information please contact:

    Tony Hawes

    Chartered Financial Planner, Commercial, Yeovil

< back