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Pension Auto Enrolment

What is Pension Auto Enrolment?

Pension Auto Enrolment is registration with pension scheme as effect of pension reform (the Pension Act 2008) which obliges employees and employers to save money for additional pension.

Does every company need to be registered with the new system?

Yes, if your company has an active PAYE system for employees paid a regular salary.

When a company must be registered with the new system?

When a company receives a letter from the ‘the Pensions Regulator’ with ‘staging date’ notification, it starts an obligation process to register its employees with a new pension scheme should they not already have one in place. This date cannot be changed.
If the company did not receive such a letter, it is still their duty to check when their ‘staging date’ will be.
If you are employing staff for the first time from 1 October 2017, your automatic enrolment duties began on the day your first member of staff starts work.
Registration must be completed only once and a ‘Declaration of Compliance’ filed with the pensions regulator in the specified time scale.
The automatic enrolment procedure must be reviewed every 3 years.

Are any penalties for late registration?

Penalty is for late registration or for lack of registration – £400 and depends of numbers of employees and can be charge £50 daily.

Does every employee have to be enrolled on the Workplace Pension Scheme?

No. Only employees who:

  • are aged between 22 and 67
  • earn at least £10,000 per year i.e. over £833 per month

Employees who meet the above criteria must be enrolled in the system.

How much do I need to pay as a premium?

Date effective Employer minimum cobtribution Staff contribution Total minimum contribution
6 April 2019 onwards 3% 5% 8%

How I get my money back?

You can take 25% of your pension (increased by interest) tax free when you reach age 55. This is optional.
The remainder of 75% (increased by interest) you will receive by monthly payments. You can take all of your accrued pension in one lump sum, but 75% of your funds will be taxed.

Prices for Registration + Declaration of Compliance.

1. You have received letter from the Pensions Regulator, but you do not have, or your employees are aged below 22 and earn less than £10,000 yearly:
£100 – for our customers
£150 – for other clients
2. You have received letter from the Pensions Regulator and you have employees who are aged 22 – 67 and earn £10,000 or more yearly :
£100 + £5 monthly per employee for our customers
£150 + £5 monthly per employee for other clients

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