If you’re working your way towards setting up your own business and you’re established as a start-up from October this year you will have instant pension duties.
This warning comes as the current schedule for employers to meet their automatic enrolment obligations comes to an end; all businesses who existed prior to April 2012 will now have passed their staging date.
Should you become an employer for the first time on or after 1st October 2017, you will have legal duties to your staff in respect of pensions, with immediate effect.
Specifically, the duties will apply from the first day that the first member of staff commenced work, referred to as the ‘duties start date’.
To help new businesses, as well as their advisers, understand and fulfil their obligations The Pensions Regulator (TPR) has launched an online bank of information and relevant tools to get them started. TPR will also write to new employers to explain to them what they must do and highlight the deadlines associated with the process.
One exemption that may apply to these new businesses is in respect of PAYE; when it comes to having a PAYE scheme in play, if staff earn £490 a month or less then HMRC may not require the employer to set one up.
If you’d like more information, there is now a new ‘employer’ landing page on The Pensions Regulator website, which can be found here.
At GH Payscheme, George Hay’s specialist Payroll Bureau in Biggleswade, Letchworth and Huntingdon, our team can assist you with administering your chosen workplace pension scheme and help you to ensure that you comply with the requirements of Auto Enrolment.
If you’re a business looking to start employing your first members of staff later this year, or if you’d just like to find out more about the services we offer, talk to one of our advisers today.