What is Auto Enrolment?

SMART BUSINESSES PLAN AHEAD

What is Auto Enrolment?
SMART PEOPLE PLAN AHEAD

6 questions every business must ask itself:

Are you aware that auto-enrolment isn’t ‘automatic’ for employers?

There’s a worryingly common misconception among employers that the ‘automatic’ part of auto-enrolment means that they don’t need to take any action.

This is far from the case; in fact, it’s estimated that auto-enrolment could take as much as 103 working days’ effort to put in place, and then more work every time employers pay their staff. Helping an employer to understand that if anything’s automated for them it’s the fines from The Pensions Regulator can often be the catalyst they need to start working with an adviser.

Source : Professional Adviser magazine

Are you aware that not only staff on the payroll are affected by auto-enrolment?

The definition of ‘workers’ isn’t limited to your payroll and permanent staff.

For example, well-paid contractors invoice for payment and if they’re working at the employer’s offices, using the employer’s equipment to perform key duties, they would be included in the assessed workforce. If an employer gets this wrong, the regulator can pursue them for the missed contributions; imagine if their mistake was only discovered years down the line – there is no expiry date on their obligations for reparation.

Source : Professional Adviser magazine

Do you know that not all payroll systems are compatible with all pension providers?

This is one of the areas of which employers are most unaware and, sadly, it can often trip up those who have prepared adequately in every other way.

Employers need to start off with a simple question; can they get out of their payroll system all the data they need for their scheme? For example, do they even have the latest home address for all of the workers affected? Have they budgeted the time and cost to get their data and processes right?

Source : Professional Adviser magazine

Is your pension fit-for-purpose and available to all employees?

There’s a worryingly common misconception among employers that the ‘automatic’ part of auto-enrolment means that they don’t need to take any action.

This is far from the case; in fact, it’s estimated that auto-enrolment could take as much as 103 working days’ effort to put in place, and then more work every time employers pay their staff. Helping an employer to understand that if anything’s automated for them it’s the fines from The Pensions Regulator can often be the catalyst they need to start working with an adviser.

Source : Professional Adviser magazine

With a 12 months is the optimum amount of time needed, have you already left it too late?

The Pensions Regulator recommends 12 months is the optimum amount of time needed to put an auto-enrolment scheme in place.

However, research from NEST shows that 20% of firms that staged in 2014 took 16 months or more to get all of their ‘ducks in a row’. The dangers for employers of missing staging dates are well publicised; large fines and, potentially, prosecution. Imagine discovering you’re one of the 20% when you have only days instead of months to get things right?

Source : Professional Adviser magazine

Has the idea of postponement lulled you into a false sense of security?

Postponement doesn’t move an employer’s staging date, and they have duties from day one.

If the employer doesn’t deliver personalised communications to each member of their workforce within six weeks of the staging date, they will lose the right to postpone, costing them up to three months’ additional contributions.

If they miss staging by more than three months, then they’re liable to make up all outstanding contributions until they’ve successfully set-up a scheme, back-dated assessments, communicated to staff and enrolled appropriately. Any employee can opt-in to the scheme from the staging date, and the employer will need to be ready to enrol them.

Source : Professional Adviser magazine

Are you aware that auto-enrolment isn’t ‘automatic’ for employers?

There’s a worryingly common misconception among employers that the ‘automatic’ part of auto-enrolment means that they don’t need to take any action.

This is far from the case; in fact, it’s estimated that auto-enrolment could take as much as 103 working days’ effort to put in place, and then more work every time employers pay their staff. Helping an employer to understand that if anything’s automated for them it’s the fines from The Pensions Regulator can often be the catalyst they need to start working with an adviser.

Source : Professional Adviser magazine

Are you aware that not only staff on the payroll are affected by auto-enrolment?

The definition of ‘workers’ isn’t limited to your payroll and permanent staff.

For example, well-paid contractors invoice for payment and if they’re working at the employer’s offices, using the employer’s equipment to perform key duties, they would be included in the assessed workforce. If an employer gets this wrong, the regulator can pursue them for the missed contributions; imagine if their mistake was only discovered years down the line – there is no expiry date on their obligations for reparation.

Source : Professional Adviser magazine

Do you know that not all payroll systems are compatible with all pension providers?

This is one of the areas of which employers are most unaware and, sadly, it can often trip up those who have prepared adequately in every other way.

Employers need to start off with a simple question; can they get out of their payroll system all the data they need for their scheme? For example, do they even have the latest home address for all of the workers affected? Have they budgeted the time and cost to get their data and processes right?

Source : Professional Adviser magazine

Is your pension fit-for-purpose and available to all employees?

There’s a worryingly common misconception among employers that the ‘automatic’ part of auto-enrolment means that they don’t need to take any action.

This is far from the case; in fact, it’s estimated that auto-enrolment could take as much as 103 working days’ effort to put in place, and then more work every time employers pay their staff. Helping an employer to understand that if anything’s automated for them it’s the fines from The Pensions Regulator can often be the catalyst they need to start working with an adviser.

Source : Professional Adviser magazine

With a 12 months is the optimum amount of time needed, have you already left it too late?

The Pensions Regulator recommends 12 months is the optimum amount of time needed to put an auto-enrolment scheme in place.

However, research from NEST shows that 20% of firms that staged in 2014 took 16 months or more to get all of their ‘ducks in a row’. The dangers for employers of missing staging dates are well publicised; large fines and, potentially, prosecution. Imagine discovering you’re one of the 20% when you have only days instead of months to get things right?

Source : Professional Adviser magazine

Has the idea of postponement lulled you into a false sense of security?

Postponement doesn’t move an employer’s staging date, and they have duties from day one.

If the employer doesn’t deliver personalised communications to each member of their workforce within six weeks of the staging date, they will lose the right to postpone, costing them up to three months’ additional contributions.

If they miss staging by more than three months, then they’re liable to make up all outstanding contributions until they’ve successfully set-up a scheme, back-dated assessments, communicated to staff and enrolled appropriately. Any employee can opt-in to the scheme from the staging date, and the employer will need to be ready to enrol them.

Source : Professional Adviser magazine

A 30 employee company on average earnings, losing postponement could cost c£1,500 in additional employer contributions. Miss staging by three months and the cost to the employer would be over £3,000…that’s before any fines from the regulator. If employers miss their staging dates or don’t implement a scheme properly, it can be costly. The government has effectively put a price-tag on failure.

Source : Professional Adviser magazine

PEOPLE WHO TOOK ADVICE SEE 53% INCREASE IN RETIREMENT INCOME*
FAIL TO PLAN. PLAN TO FAIL.

NOT SO SMART

Do you know how to meet the challenges of Auto-enrolment?

There continues to be a high level of publicity in the mainstream media, but has it furnished you with the information or tools you need to plan and deliver an Auto-enrolment solution for your business?

For many businesses, the answer is a resounding “No”!

Having overseen many auto enrolment implementations in the past 3 years for varying sizes of firms, Neil Mutton, Partner at Ablestoke Financial Planning, has a forthright opinion on the question of what the three most important requirements are;

“Planning, Planning & Planning.” is his answer.

Question
How big is the task?
Question
How much are the contributions?
Answer

There are hundreds of 000’s of businesses in the UK today who do not have a Pension scheme in place for their staff.
Are you one of them?

Every firm, down to those with just one employee has been set a staging date and should have been sent at least 1 letter from The Pensions Regulator confirming this date.

Answer

There are 4 different options which have differing percentages, rising from the employers staging date to between 7-9% total effective from April 6th 2019.

Get in touch with us, we can help you.

The contributions
Question
How big is the task?
Answer

There are hundreds of 000’s of businesses in the UK today who do not have a Pension scheme in place for their staff.
Are you one of them?

Every firm, down to those with just one employee has been set a staging date and should have been sent at least 1 letter from The Pensions Regulator confirming this date.

Question
How much are the contributions?
Answer

There are 4 different options which have differing percentages, rising from the employers staging date to between 7-9% total effective from April 6th 2019.

Get in touch with us, we can help you.

The contributions

Have more questions about Auto enrolment? Find out more…
The AE Overview

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Ablestoke Financial Planning LLP’s Registration Number is OC367708 and place of registration is England. The Company Registered Office is Admirals Offices, Main Gate Road, The Historic Dockyard, Chatham, Kent, ME4 4TZ.
Ablestoke Financial Planning LLP is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which is authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register under reference 440703 and 440718. The term partner is used to refer to a member of Ablestoke Financial Planning LLP.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

Auto enrolment is not regulated by the Financial Conduct Authority.

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