Can I have a business energy contract if I work from home?
The gig economy is showing no signs of slowing down and micro businesses are thriving, with 76% of UK business...Read More
‘That’s an age away’, I hear you cry. But the Pensions Regulator recommends employers start preparing for auto enrolment nine to 12 months in advance. So you could be on the back foot already.
And with many small businesses lacking a dedicated payroll team, it’s up to owners to gen up on their auto enrolment responsibilities – or risk fines.
Here’s what you need to know about auto enrolment and key dates for your diary.
Auto enrolment requires all employers, large and small, to enrol eligible employees into a work pension. Eligible employees are those aged between 22 and State Pension age, who earn more than £10k a year and work in the UK. Both employers and employees must contribute to the pension, plus there is tax relief. Tax relief means that some of the employee earnings that would have gone to the government as tax go into the workplace pension instead. Employers must make a minimum contribution of 1% of employee earnings, rising to 2% from October 2017 and 3% from October 2018.
To work out your circumstances try the free government-backed Money Advice Service’s handy workplace pension contribution calculator.
It’s the government’s bid to get more of us saving for old age, with workers retiring with an income from their workplace pension as well as their State Pension.
Auto enrolment is well underway. The first workers were enrolled in 2012 starting with the largest employers. The rollout extends to the smallest firms by 2017.
The auto enrolment period for firms with up to 49 employees runs from 1 June 2015 to 1 April 2017, starting with businesses with 30-49 workers, then employers with fewer than 30 staff. Your firm’s exact date to start auto enrolling employees within this period is called your staging date and is based on the number of staff on your PAYE scheme as at April 2012. Business established after April 2012 will start auto enrolment from May 2017 onwards.
The Pensions Regulator will write to alert you 12 months and three months before your staging date. If you have your firm’s PAYE reference you can check your staging date on the Pension Regulator’s website. PAYE reference doesn’t work? Have certain types of staff but no PAYE scheme? Find auto enrolment staging date exceptions here.
Information on these three points and more can be found in The Pension Regulator’s clear, concise, must-read guide ‘The essential guide to automatic enrolment – Information for employers’.
The Pensions Regulator’s executive director for automatic enrolment Charles Counsell has urged employers to act now.
He says: “More than 43,000 employers have automatically enrolled their staff into a pension and nearly half of them said they wished they had left more time as it took them longer than they thought.
“We encourage all employers, however small, to learn from the experience of other employers – leaving extra time is better than leaving it too late.”
"Very easy. Bea Luseni very efficient & knowledgeable."This review was posted by Alan Duffy on the 31st of March 2017
Super helpful and easy to work with
"Recommend this company in a heartbeat - Nicole Borneuf was super easy to talk to, was not pushy in the slightest, very helpful and replied with all my questions very professionally and did all she could to help. I had to deal with a few companies to sort my business energy out, all but Nicole were too pushy for my liking and I refused to follow through with them. Thank Nicole - you are a credit to your company, thank you for making the stressful energy change so easy."This review was posted by Mia Drew on the 29th of March 2017
An Extremely Competent Company
"Switch my business has not only helped my SME secure a good energy deal for the second year running but Jessica swiftly found a alternative supplier for me when I was let down on the day of switching by the new contractual provider I had chosen some 4 months previously. Being suddenly out of contract and without provider is everyone's energy nightmare. Greatest thanks."This review was posted by S McMillan on the 29th of March 2017
Helpful, friendly and we saved lots of money!
"Jessica Purnell was helpful and friendly, she made the whole process easy and simple AND we saved lots of money thanks Jess"This review was posted by Melanie Baker on the 23rd of March 2017
Quick & Easy
"Kabibi was very helpful and the whole process was very efficient. The one small reservation I had was that I was phoned up by Kabibi almost immediately having received my online quote - which wasn't enough time for me to finish reading the quotes! Fortunately she was able to assist me in a greater savings on both Gas & Electricity, and so as long as the switchover is seamless I will remain very happy with the service."This review was posted by Amanda Brown on the 21st of March 2017