Pension Reform – Your obligations

In October 2012, the UK Government introduced workplace pension reforms, known as Auto Enrolment. Over the course of a phasing-in period, all employers were required to auto-enrol all eligible employees into a Qualifying Workplace Pension Scheme.

As a company director or business owner, it’s your obligation to understand which schemes qualify, the process involved, how they’re structured and the regulations you must comply with.

Since April 2019, employer contributions have been a minimum of 3%. Member contributions are at least 5% (this includes 1% rate tax relief). This gives a total pension contribution of 8%.

To help you meet your obligations, we will take the time to understand the finer details of your business, as well as your personal plans and ambitions for the future. We will carefully explain the issues and requirements around workplace pensions and offer guidance to help ensure your business is fully compliant and working within the rules.

Why act now?

  • Your existing scheme might be poor value or might even be unfit for purpose. You might need to change it or make it more efficient.
  • Budgeting in advance will allow you to prepare for and minimise costs.
  • Strategic Planning will let you find the best solution for your staff.
  • Employee communication – they need to know what’s going on
  • Consider Salary Exchange – it could save you money
  • Making sure you meet your regulatory requirements can protect you from penalties of up to £10,000 per day for larger companies.
  • Be one step ahead and beat the rush

There are plenty of solutions available, and it is important to note that the most obvious one might not be the right one for you.

Many companies outsource their VAT returns. Automatic enrolment is much more complex than this and can carry greater penalties. But it’s something we can help with. Contact us to talk through your pensions needs.

The value of a pension will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Auto-enrolement pensions are not regulated by the Financial Conduct Authority.