Contact Us

288 Oxford Road, Gomersal
Cleckheaton, BD19 4PY

Search News


Pension automatic enrolment changes

Source: Pensions Regulator | | 27/11/2018

Automatic enrolment for workplace pensions encourages many employees to start making provision for their retirement with employers, and as a bonus, government also contributes to their pension pot.

The law states that employers must automatically enrol workers into a workplace pension, if they are aged between 22 and State Pension Age, earn more than the minimum earning threshold (currently £10,000), work in the UK and are not already a member of a qualifying work pension scheme.

Employees can opt-out of joining the pension scheme if they wish. However, the government is keen to ensure that most eligible employees are members of a pension scheme. To help encourage this process, there is an automatic re-enrolment process that happens regularly every three years and in some cases on an immediate basis, if an employee or the pension scheme meets certain criteria. If staff members opted out before, or ceased active membership of the scheme, they'll need to be put back in the scheme or to once again opt out.

Under the rules of the scheme, both the employer and employee need to make contributions. Currently, employees who are contributing to a workplace pension must contribute a minimum of 2% of their qualifying earnings. The level of qualifying earnings for 2018-19 is set between £6,032 and £46,350, so the relevant percentage is taken from the pay that falls between these two figures.

From 6 April 2019, the employee contribution will increase to 5%. Employers will be required to contribute a further 3% making for a total minimum contribution of 8%.



 

Latest News

Less is more – MTD regulations relaxed
20/05/2019 - More...
Starting from April 2019, most VAT-registered businesses that have a taxable turnover over £85,000 are required to

Claim for money owed to you
20/05/2019 - More...
If you are owed money by an individual or business, there is a procedure you can use called making a court claim. This

Reasonable excuses for late payment or filing
20/05/2019 - More...
There are a number of options open to taxpayers who disagree with a tax decision issued by HMRC. As a first step, it may

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

Copyright © 2019 - Calvert Dawson

Cookie Policy | Privacy Policy

           ICAEW-White                       

 

Save

Save