Have You Sorted your Auto Enrolment Yet? If Not then Watch Out!
The Pensions Regulator (TPR) has very recently reported that County Court Judgements (CCJs) have been issued to a number of employers who have failed to pay penalties levied in connection with their Auto Enrolment (AE) obligations . If your business has so far ignored the notices that have been sent to you by TPR, then this is something that you really ought to take note of!
At THP, we always try to do all we can to advise clients of potential issues that may affect their business and feel that it’s important for all to be aware of the implications that ignoring Auto Enrolment compliance can have. According to TPR, CCJ’s have been issued to a number of employers who have repeatedly ignored the penalty notices sent to them. If you as an employer fail to pay up within 30 days of receiving a CCJ, the details of this will appear on your credit record which will likely harm your reputation.
It’s also important to realise that these CCJs will then stay on your record for six years, and are likely to affect your business’ ability to get credit on favourable terms or at all in the future – something that could have a seriously negative impact should you be looking to expand, for example.
Burying your head in the sand and ignoring the responsibilities that you have an as employer also means that your staff are losing out on pensions they are legally entitled to. To avoid this happening, we’ve put together a couple of useful tips to help get you started in ensuring that your business complies with the AE rules – ignore them at your own peril!
- Make sure that you know when your staging date is, and get a plan sorted for getting everything in place by visiting TPR’s website (make sure you register with TPR online within 5 months of this date too)
- Know which members of staff are eligible for AE – they need to be aged between 22 years old and the state pension age, have qualifying earnings above the earnings trigger for automatic enrolment, are working in the UK and are not already a member of a qualifying pension scheme.
- Decide on the most suitable (and cost effective) pension scheme that you will offer eligible staff and have it set it up.
- Write to your eligible members of staff to communicate what AE means for them
- Enrol eligible staff in your chosen pension scheme within the ‘joining window’ (a one-month period from the eligible member of staff’s AE date
- Make the correct contributions to your staff’s pensions – this will need to be at least 3% of their qualifying earnings by October 2018
If your business is concerned about the rules for Auto Enrolment, then please get in touch, as we have our own specialist Auto Enrolment specialists who are very happy to talk through your options. Alternatively just enter your contact details here to download our detailed guide to all things Auto Enrolment.
To find out more about THP and the accountancy services that we offer, call 0800 6520 025 to speak to a member of the team today – we look forward to hearing from you!