Auto Enrolment and Workplace Pensions

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Auto Enrolment and Workplace Pensions

This is the year of workplace pensions – or auto enrolment. It doesn’t help that there are these two terms attempting to address the same issue. All employers, however small have to provide staff (which may be a spouse) a pension.

Strangely, in reality the selection of the pension is very much the least of the problems as in essence all this needs to comply with rules, ensuring that everyone (all staff) are properly assessed and informed about the pension being made available and then automatically enrolled. The employer and employee will both contribute, under auto enrolment terms, employees will pay more than employers.

This is really all about processes and being able to demonstrate compliance, much like VAT or PAYE. We do not set up workplace pensions, but are advising all employers to get and use some rather clever software by AE in Box. This will help you meet the deadlines and avoid fines. This year hundreds of thousands of small firms will need to comply.

January Sales

The software keeps you up to date and requires a minimal outlay. The initial set up fee of £79+VAT is being reduced to £1+VAT this month…. A bit of a January sale. The normal monthly license costs £29+VAT but only begins 9 months prior to your staging date. You will need to insert the promotional code at the online ordering stage which is: AEJANSALE

So it’s time to get cracking….

Please see our dedicated webpage for more information about this.

Here’s a good little video, (not by AE in a Box) but one of the better ones that I have come across.

…and one from AE in a Box

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Auto Enrolment and Workplace PensionsDominic2023-12-01T12:19:37+00:00

Auto Enrolment – the rising tide

Auto enrolment pretty much effects everyone that isn’t yet retired. In a nutshell, having faffed around with pensions for the last 30 years the Government are now forcing employers to offer pensions to their staff. Employers will be required to contribute 3% of salary… employees 5%.

It’s true that this is not a compulsory pension. Employees can opt out. Employers cannot. There are hefty daily fines for those that fail to meet the deadline to implement their new, qualifying staff pension. Everyone has to comply…. not doing so isn’t an option.

All the UKs biggest businesses have now set up their auto enrolment pensions (also called workplace pensions…. helpful eh?). Just pause to think what an administrative nightmare this is… staff coming and going on a daily basis, all needing to comply else suffer fines. What a headache… thankfully technology will reduce the headache, but action still needs to be taken.

Now small and medium-sized firms are gradually reaching their “staging date” (start date) and there will be a massive number of them. Few realise that there are implications for contracts of employment and of course operating costs. However the biggest issue is technology as all staff need to have a working email address… presumably a work email address is easiest to monitor and demonstrate that information has been sent by the employer.

Pain Relief

Most financial advisers and Accountants aren’t getting too involved in auto enrolment. Frankly because the work can be expensive and small firms don’t want that. So we have found a solution – a bit of really good IT. Its called AE in a Box. It isn’t a pension. It’s a project management tool that ensures that you are compliant with the rules, makes it easy to set up a scheme and communicate with your staff.

If you are an employer (even if you run a Limited company with only one other Director or member of staff) you have to comply. So check out the very easy to use tool. It is a monthly license subscription (and you will need the ongoing support) as even those that opt out of your pension, will need to be opted back in every 3 years… the Government hope that inertia will ensure more people join pensions and thus build up their own resources, rather than relying solely on the State Pension… which is already over-stretched.

Are you an Employee?

Do your boss a favour, point them to our tool and earn some brownie points. I promise you that auto enrolment is a headache and leaving it until thousands of employers are trying to do the same thing at the same time will end in tears…. and fines. As an employer myself, I really value people who bring me solutions not problems.

Are you an Accountant?

The tool enables Accountants to assist in the process, providing and checking data. This will make your life much easier on so many levels when dealing with your small firm clients.

Click this link to get more information, its low-cost with a single sign up fee. The monthly fee isn’t taken until 6 months before your scheduled staging date. But whatever you do, now is the time to take action.

Dominic Thomas
Solomons IFA

Auto Enrolment – the rising tideDominic2023-12-01T12:19:57+00:00

Auto Enrolment Fines – Workplace Pensions

As expected, the pensions regulator is taking auto enrolment (workplace pensions) rather more seriously than it took stakeholder pensions. Employers were warned about the prospect of fines and as the number of firms that should have started their pensions has multiplied, so have the fines. This is unlikely to alter as the momentum increases. This year medium sized and some small firms will be expected to comply with the rules. 166 penalty notices were issued in the last quarter of 2014 and over 1,100 compliance warning notices sent to firms.

Avoid the Fines

Employers need to get on with their auto enrolment compliance. In practice this is a project management exercise rather than about finding a good pension. As a result I advise employers and Accountants to use the very low cost software from AE in a Box. It enables you to fully comply in time and avoid fines. Importantly it is an ongoing project – much like PAYE is an ongoing project, so data and processes need to be adhered to strictly.

AE in a Box

AE in a Box is very inexpensive, £79+VAT to set up and then £29+VAT a month thereafter. The monthly subscription will only begin 6 months prior to your staging date. I would urge you to consider this bit of kit. It isn’t a financial product, its a tool to help you do the job yourself, cost-effectively rather than getting a more expensive planner like myself involved.

Dominic Thomas

Auto Enrolment Fines – Workplace PensionsDominic2023-12-01T12:39:55+00:00