Is Your Pension Scheme Up to Date?
April 2019 marked the
final changes to the government’s workplace pension scheme. After being
introduced in 2017, the minimum contributions for employers and staff have
risen year on year. With The Pensions Regulator finally cracking down on
non-compliance, it’s more important than ever to make sure your pension scheme
is up to date.
In this post, we’ll
look at what’s changed, how they’re cracking down and how to keep yourself
Changes to minimum
When the Government
introduced the Workplace pension, they outlined three increases over three tax
years. On 6th April 2017, it became obligatory for all employers to
automatically enrol employees on a pension scheme. Employees had to contribute
a minimum of 1% of their wages to the pension scheme, which was matched by
employers, on top of their wages.
In 2018-19, the
minimum employer contribution rose to 2%, with employees contributing at least
3%. Finally, on 6th April 2019, the minimum rose to 3% and 5% for
employers and employees, respectively:
||Minimum employer contribution ||Minimum employee contribution |
|6th April 2017 – 5th April 2018 ||
|6th April 2018 – 5th April 2019 ||
|6th April 2019 onwards ||
Cracking down on
According to the Financial Times, The Pensions Regulator (TPR) has begun seeking out companies that don’t comply with their duties. They’re comparing data with HMRC to find which employers aren’t making the right contributions. TPR will check any companies who aren’t making the right contributions, or those who haven’t enrolled staff on a pension scheme at all.
started in mid-May and will continue throughout the summer. Those found to be none-compliant
could face court action and fines. Needless to say, any obstruction to their
investigations will also be penalised.
“We know the vast
majority of employers are doing the right thing for their staff,” said Darren
Ryder, TPR’s director of automatic enrolment. “However, there are a small
minority who persistently ignore their responsibilities. They can expect a
knock at the door from us and enforcement action.”
How to make sure you’re
To be compliant with the
workplace pension regulations, employers need to automatically enrol employees
onto a compliant pension scheme, as long as they are:
least 22 years old
- Below state
more than £10,000 per year (or a monthly / weekly equivalent)
Need a hand?
If you’re struggling to keep
track of the changing regulations, or don’t have the systems in place to
automatically enrol employees, UWM offers comprehensive auto enrolment services for UK
which workers are eligible
the appropriate pension scheme
up systems for ongoing assessments and changing circumstances
accurate records of compliance, opt outs and contributions
In short, our team of Leeds-based accountants can take all the legwork out of auto-enrolment – keeping your employees
happy and your business 100% compliant.