Pensions Regulator informs employers of impending changes

Pensions Regulator informs employers of impending changes

The Pensions Regulator has recently been writing to employers informing them that the minimum contributions are increasing from 2% to 5% from 6th April 2018 and then 5% to 8% from 5th April 2019.  See the table below:

Date Employer minimum contribution Total minimum contribution
Employer’s staging date to 05/04/18 1% 2% (including 1% staff contribution)
06/04/18 — 05/04/19 2% 5% (including 3% staff contribution)
06/04/19 onwards 3% 8% (including 5% staff contribution)

 

Additionally many employers who have been through the automatic enrolment process within the last three years have been contacted about their cyclical re-enrolment duties whereby they are legally bound to reassess their workforce and automatically enrol employees again. This means any earlier opt-outers will be automatically enrolled again.

New employers do not escape either.

If you set up your PAYE scheme before your staff started working for you:

Your duties will start on one of two dates:

  • 1 January 2018, if you first pay your member of staff between 2 April 2017 and 30 June 2017

or

  • 1 February 2018, if you first pay your member of staff between 1 July 2017 and 30 September 2017

If you set up your PAYE scheme after your staff started working for you:

Your duties start on the date your first member of staff started working for you. However, for simplicity we will treat your duties as starting on:

  • 1 January 2018, if you first pay your member of staff between 2 April 2017 and 30 June 2017

or

  • 1 February 2018, if you first pay your member of staff between 1 July 2017 and 30 September 2017.

Complacency is not an option. A growing number of employers who have stuck their heads in the sand have been fined.

Penalty notices

The TPR have the power to issue penalty notices if you fail to comply with a statutory notice, or to address particular kinds of breach.

Fixed penalty notice

If you don’t comply with statutory notices, or if there’s evidence of breaches of the law, you may be sent a fixed penalty notice. The fine is fixed at £400 and must be paid within the period set out in the penalty notice.

Escalating penalty notice

If you still don’t comply with a statutory notice you may be sent an escalating penalty notice. This gives you a new deadline to comply, after which you will be fined at a daily rate of £50 to £10,000, depending on the number of staff you have. The fine will continue to grow at the daily rate until you comply with the statutory notice, or until the TPR stops it.

If you need any help or guidance to get through the process, please contact us on 01223 275 172 or email enquiries@dartingtonbenefits.co.uk

Meanwhile, feel free to download one of the following TPR guides:

automatic-enrolment-when-do-employer-duties-start

essential-guide-to-re-enrolment-and-re-declaration

re-enrolment-detailed-guidance-11

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