From 6 April 2019, the minimum amounts that both employers and employees must pay into the automatic enrolment pension scheme will increase. These changes are as follows:
- Currently, an employer is required to pay a minimum of 2% with the employee adding 3% to make an overall total of 5%.
- From 6 April 2019, the employer will have to add a minimum of 3% and the employee 5% making a total of 8%.
Does this apply to you?
- If you have eligible staff in an automatic enrolment pension scheme then you will have to make sure that at least the minimum is paid by you and your staff into the scheme.
- If you don’t already have the automatic enrolment pension scheme set up and have employees, please make sure you are aware of your responsibilities.
What do you need to do?
- It is your responsibility under the Pensions Act 2008 to make sure that you are contributing the correct amount for your staff.
- You should let your staff know about any increases being applied to their contribution.
- Continue your ongoing automatic enrolment duties – this means assessing each employee each time you pay them and put into their pension scheme if they meet the criteria (unless they have opted out).
- Monitor your obligations – if an employee’s hours, days, salary changes then your obligations may change too.
If you require any more information or would like any advice please contact Andrew on 01763 289607 or drop him an email firstname.lastname@example.org.
We strongly advise you to seek appropriate advice before taking action on any of the points listed above.
If you are in any doubt, please call us for clarification.
About us: Leggate Associates Limited was formed by Andrew Leggate LL.B FCMA FCA CGMA who has over 35 years of tax and accountancy experience in industry and practice, and the practice is managed by Joanne Leggate FMAAT ATT. Our clients range from building subcontractors to multi-million pound concerns and high net worth individuals all over the UK. Please see our website www.leggateassociates.co.uk or follow @LeggateAssoc on Twitter for occasional updates.
© 2018 Leggate Associates Ltd