The document discusses auto enrolment, a UK government scheme where eligible employees are automatically enrolled into a workplace pension. It requires employers to contribute to employees' pensions, as do employees through deductions from their pay. The scheme aims to boost retirement savings as not enough people were saving for retirement. It will affect all UK businesses by 2018 as it began with large companies in 2012. The document provides information on eligibility, contribution requirements, and responsibilities for employers in setting up a qualifying auto enrolment pension scheme with their employees. It also promotes the services of True Potential Investor, who can help employers comply with auto enrolment requirements through an online system that makes setup and management easy.
ARE YOU READY ?
EMAIL brianboyd.thefinancialfactory@live.co.uk
Upcoming dates
PAYE Scheme Size
Staging Date
60
1 Oct 2014
59
1 Nov 2014
58
1 Jan 2015
54-57
1 March 2015
50-53
1 April 2015
40-49
1 August 2015
30-39
1 October 2015
Fewer than 30
1 June 2015 - 1 April 2017
Employers without PAYE
1 April 2017
New employers
1 May 2017 - 1 Feb 2018
An Introduction to Auto Enrolment by Qtac
Be confident with:
Work Place Pensions
Auto Enrolment
The Pensions Regulator
Pension Providers
Auto Enrolment Functionality in QTAC Payroll
Planning for Success
What is Auto Enrolment?
‘Workplace Pension Reform’ is the term used to describe the changes to pensions in the UK, where employees are automatically enrolled into an ‘Automatic Enrolment’ pension scheme, as long as they ‘qualify’.
A workplace pension, which is arranged by the employer, is a way for employees to save for retirement. Some workplace pensions are also called ‘occupational’, ‘works’, ‘company’ or ‘work-based’ pensions.
If a company already has a pension scheme they will need to check that it ‘qualifies’ if their plan is to use that scheme as their ‘Workplace Pension’.
Companies who do not currently have a pension scheme setup will need to set up an ‘Auto Enrolment’ scheme. The pension scheme must ‘qualify’ - meaning the employee and employer contributions match or exceed the minimum contributions (detailed later in this document) and also that no restrictions are placed on membership.
Every company will be required to offer employees the chance to join a pension scheme, which both the ‘employee’ and ‘employer’ will contribute in to. The employer has to contribute at least the minimum contribution into the scheme in order for the scheme to qualify.
In most cases the government also add money into the pension scheme in the form of tax relief.
Employees need to be automatically enrolled if they:
Are aged between 22 and State Pension Age
Earn more than £10000 a year (2014/15 limit)
Work in the UK
If a company does not have a qualifying pension scheme then it must introduce one. If the employer doesn’t currently make a contribution to the pension, they will have to by law when they ‘automatically enrol’ entitled workers.
Employers are responsible for ensuring they have a compliant pension scheme in place and that the correct employees and employers contributions are paid into the scheme.
One Year in into the Pension Reform
More than 750,000 members
Over 2,350 employers
Opt outs around 8 per cent
Staging Dates
Each company will have their own staging date, your auto enrolment staging date is determined by the size of your PAYE scheme on the 1st April 2012. Staging dates will be staggered, with larger employers starting sooner and small employers starting later.
How do I find it out? Visit The Pensions Regulators website
Use the Staging Date Calculator
www.thepensionsregulator.gov.uk/
A company can choose to move it’s staging date to an earlier date but it cannot be moved to a later one.
A pension scheme can be setup for employees at any time. You do not have to wait until auto enrolment is introduced.
We recommend that you give yourself plenty of time to prepare for auto enrolment.
Automatic Enrolment functionality has been elegantly integrated into Qtac. Setting up your pension scheme, enrolling employees, issuing communication, making contributions and viewing reports – it's all seamless and simple.
Employees need to be automatically enrolled if they:
Are aged between 22 and State Pension Age
Earn more than £10,000 a year (2014/15 limit)
Work in the UK
If a company does not have a qualifying pension scheme then it must introduce one. If the employer doesn’t currently make a contribution to the pension, they will have to by law when they ‘automatically enrol’ entitled workers.
Your clients are responsible for ensuring they have a compliant pension scheme in place and that the correct employees and employers contributions are paid into the scheme.
What’s the reason for auto enrolment? The average life span has increased and people are living a lot longer. These changes to pensions are because the current state pension will just not be sufficient when retiring and therefore trying to encourage people to save for retirement.
Jobholders
Eligible jobholder
The employer must
automatically enrol and make contributions
if using postponement, provide a notification to the eligible jobholder
process any opt-out notice
automatically re-enrol approximately every three years
keep records of the automatic enrolment process
Non-eligible jobholder
The employer must
arrange pension scheme membership if the non-eligible jobholder decides to opt-in, and also make contributions
provide information about the right to opt-in, unless using postponement
if using postponement, the employer must provide a notification to the non-eligible jobholder & keep records of the enrolment process
Entitled worker
The employer must:
arrange pension scheme membership if the entitled worker decides to join
provide information about the right to join, unless using postponement
if using postponement, provide a notification to the entitled worker
keep records of the joining process
A clients choice of automatic enrolment pension scheme could have an impact on the payroll processing time and costs involved.
Some of your clients may have an existing scheme, in this scenario they should ascertain with their pension provider whether it meets automatic enrolment requirements and is therefore classed as a qualifying scheme.
A summary look at the effects the 2014 Australian Federal Budget may have on you and your businesses as well as the economy. Post Budget presentation by Hanrick Curran, Chartered Accountants in Brisbane Australia
ProAktive's approach to Auto Enrolment (pensions).ProAktivePeople
Here's a copy of our presentation from the free breakfast briefing we held in January 2014. Auto Enrolment is mandatory legislation to all companies in the UK, starting from October 2012. If you have questions that need answering or would like us to help you with this process, please get in touch. 01302 341 344.
ARE YOU READY ?
EMAIL brianboyd.thefinancialfactory@live.co.uk
Upcoming dates
PAYE Scheme Size
Staging Date
60
1 Oct 2014
59
1 Nov 2014
58
1 Jan 2015
54-57
1 March 2015
50-53
1 April 2015
40-49
1 August 2015
30-39
1 October 2015
Fewer than 30
1 June 2015 - 1 April 2017
Employers without PAYE
1 April 2017
New employers
1 May 2017 - 1 Feb 2018
An Introduction to Auto Enrolment by Qtac
Be confident with:
Work Place Pensions
Auto Enrolment
The Pensions Regulator
Pension Providers
Auto Enrolment Functionality in QTAC Payroll
Planning for Success
What is Auto Enrolment?
‘Workplace Pension Reform’ is the term used to describe the changes to pensions in the UK, where employees are automatically enrolled into an ‘Automatic Enrolment’ pension scheme, as long as they ‘qualify’.
A workplace pension, which is arranged by the employer, is a way for employees to save for retirement. Some workplace pensions are also called ‘occupational’, ‘works’, ‘company’ or ‘work-based’ pensions.
If a company already has a pension scheme they will need to check that it ‘qualifies’ if their plan is to use that scheme as their ‘Workplace Pension’.
Companies who do not currently have a pension scheme setup will need to set up an ‘Auto Enrolment’ scheme. The pension scheme must ‘qualify’ - meaning the employee and employer contributions match or exceed the minimum contributions (detailed later in this document) and also that no restrictions are placed on membership.
Every company will be required to offer employees the chance to join a pension scheme, which both the ‘employee’ and ‘employer’ will contribute in to. The employer has to contribute at least the minimum contribution into the scheme in order for the scheme to qualify.
In most cases the government also add money into the pension scheme in the form of tax relief.
Employees need to be automatically enrolled if they:
Are aged between 22 and State Pension Age
Earn more than £10000 a year (2014/15 limit)
Work in the UK
If a company does not have a qualifying pension scheme then it must introduce one. If the employer doesn’t currently make a contribution to the pension, they will have to by law when they ‘automatically enrol’ entitled workers.
Employers are responsible for ensuring they have a compliant pension scheme in place and that the correct employees and employers contributions are paid into the scheme.
One Year in into the Pension Reform
More than 750,000 members
Over 2,350 employers
Opt outs around 8 per cent
Staging Dates
Each company will have their own staging date, your auto enrolment staging date is determined by the size of your PAYE scheme on the 1st April 2012. Staging dates will be staggered, with larger employers starting sooner and small employers starting later.
How do I find it out? Visit The Pensions Regulators website
Use the Staging Date Calculator
www.thepensionsregulator.gov.uk/
A company can choose to move it’s staging date to an earlier date but it cannot be moved to a later one.
A pension scheme can be setup for employees at any time. You do not have to wait until auto enrolment is introduced.
We recommend that you give yourself plenty of time to prepare for auto enrolment.
Automatic Enrolment functionality has been elegantly integrated into Qtac. Setting up your pension scheme, enrolling employees, issuing communication, making contributions and viewing reports – it's all seamless and simple.
Employees need to be automatically enrolled if they:
Are aged between 22 and State Pension Age
Earn more than £10,000 a year (2014/15 limit)
Work in the UK
If a company does not have a qualifying pension scheme then it must introduce one. If the employer doesn’t currently make a contribution to the pension, they will have to by law when they ‘automatically enrol’ entitled workers.
Your clients are responsible for ensuring they have a compliant pension scheme in place and that the correct employees and employers contributions are paid into the scheme.
What’s the reason for auto enrolment? The average life span has increased and people are living a lot longer. These changes to pensions are because the current state pension will just not be sufficient when retiring and therefore trying to encourage people to save for retirement.
Jobholders
Eligible jobholder
The employer must
automatically enrol and make contributions
if using postponement, provide a notification to the eligible jobholder
process any opt-out notice
automatically re-enrol approximately every three years
keep records of the automatic enrolment process
Non-eligible jobholder
The employer must
arrange pension scheme membership if the non-eligible jobholder decides to opt-in, and also make contributions
provide information about the right to opt-in, unless using postponement
if using postponement, the employer must provide a notification to the non-eligible jobholder & keep records of the enrolment process
Entitled worker
The employer must:
arrange pension scheme membership if the entitled worker decides to join
provide information about the right to join, unless using postponement
if using postponement, provide a notification to the entitled worker
keep records of the joining process
A clients choice of automatic enrolment pension scheme could have an impact on the payroll processing time and costs involved.
Some of your clients may have an existing scheme, in this scenario they should ascertain with their pension provider whether it meets automatic enrolment requirements and is therefore classed as a qualifying scheme.
A summary look at the effects the 2014 Australian Federal Budget may have on you and your businesses as well as the economy. Post Budget presentation by Hanrick Curran, Chartered Accountants in Brisbane Australia
ProAktive's approach to Auto Enrolment (pensions).ProAktivePeople
Here's a copy of our presentation from the free breakfast briefing we held in January 2014. Auto Enrolment is mandatory legislation to all companies in the UK, starting from October 2012. If you have questions that need answering or would like us to help you with this process, please get in touch. 01302 341 344.
I came across general queries on Income taxation issues from employees and I tried to help them to understand basic taxation rules and better financial plan for middle level salaried employees.
The much-awaited Budget is finally out.Finance Minister Shri Arun Jaitley announced the Union Budget 2018-19 on 01st February. Overall, the government in an effort to achieve its objective of reducing poverty, expediting infrastructure creation and building a strong, confident and a New India, in its Budget, has retained its focus on giving a push to the rural economy and the agricultural sector.
Corporate India shall be majorly benefited by rationalization of corporate Income Tax to 25% whereby 99% of the corporate tax payers who clock turnover below.
Rs. 250 Cr in the previous year will be benefited.
We at APMH are determined to demystify the budget from a compliance angle and are excited to present our "Union Budget E - Booklet 2018-19 on various developments in Direct & Indirect Taxes announced in the Union Budget and their implications for Businesses.
Understand how Union Budget 2018 will impact you with in-depth analysis and insights from our tax and industry experts.
We are sure that it will prove as a useful reference material for you and your team throughout the year.
If you're a small business owner and worried about the new pension rules and regulations this comprehensive guide will help you set-up and manage your new auto-enrolment workplace pension scheme.
I came across general queries on Income taxation issues from employees and I tried to help them to understand basic taxation rules and better financial plan for middle level salaried employees.
The much-awaited Budget is finally out.Finance Minister Shri Arun Jaitley announced the Union Budget 2018-19 on 01st February. Overall, the government in an effort to achieve its objective of reducing poverty, expediting infrastructure creation and building a strong, confident and a New India, in its Budget, has retained its focus on giving a push to the rural economy and the agricultural sector.
Corporate India shall be majorly benefited by rationalization of corporate Income Tax to 25% whereby 99% of the corporate tax payers who clock turnover below.
Rs. 250 Cr in the previous year will be benefited.
We at APMH are determined to demystify the budget from a compliance angle and are excited to present our "Union Budget E - Booklet 2018-19 on various developments in Direct & Indirect Taxes announced in the Union Budget and their implications for Businesses.
Understand how Union Budget 2018 will impact you with in-depth analysis and insights from our tax and industry experts.
We are sure that it will prove as a useful reference material for you and your team throughout the year.
If you're a small business owner and worried about the new pension rules and regulations this comprehensive guide will help you set-up and manage your new auto-enrolment workplace pension scheme.
We’ve compiled a list of questions that we’re commonly asked by our clients about automatic enrolment, and answered them on the following slides.
From 'What is automatic enrolment,and does it apply to me?' to 'How do I choose the right pension supplier?' you'll find the most frequently asked questions - and the answers you need.
Three presentations looking at the things to consider when taking on your first employee, or moving from being self-employed to an employer.
Accountancy and tax pitfalls
HR and legal considerations
PAYE
Making your employees your brand ambassadors and examples of where it works
The Future of Auto Enrolment for Bookkeepers
Presented by Karen Bennett at ICB Bookkeepers Summit 2017
For more information visit https://www.brightpay.co.uk
Auto Enrolment - Are your clients Ready - BrightPay
How to Price so you can earn more and work less - Steve Pipe
For more information visit www.brightpay.co.uk.
WORK OPPORTUNITY TAX CREDIT: HOW EMPLOYERS CAN MAXIMIZE HIRING INVESTMENTCost Management Services
Brian Kelly hosts an interactive online workshop on the Work Opportunity Tax Credits “WOTC” for CPA Academy. The 1 hour session will focused on How Employers Can Maximize Hiring Investment. The webinar, was targeted at the accounting community, CPAs, CEOs and CFOs, and CPE Credits were available for attending.
Attendees learn how to add value to CPA service and take advantage of the billions dollars that are available today through the WOTC Tax Credit program. #WOTC
Visit our website www.cmswotc.com to learn more.
3. It’s a Government scheme
where every employee
(who is eligible) is opted
into a work based pension
scheme to save for
their retirement.
4. Your company is required to
contribute to the scheme as
well as the employee.
Government tax relief will
also boost contributions.
5. Employee pays
Minimum 0.8% of
qualifying earnings
rising to 4% by 2018.
Employer pays
Minimum 1% of
qualifying earnings
rising to 3% by 2018.
Government pays
0.2% of qualifying
earnings rising to
1% by 2018.
How it works:
6. Find out your staging date:
Upcoming dates
PAYE Scheme Size Staging Date
60 1 Oct 2014
59 1 Nov 2014
58 1 Jan 2015
54-57 1 March 2015
50-53 1 April 2015
40-49 1 August 2015
30-39 1 October 2015
Fewer than 30 1 June 2015 - 1 April 2017
Employers without PAYE 1 April 2017
Auto enrolment
began in 2012 with
large companies
and will affect all UK
businesses by 2018.
7. Your responsibilities:
• Set up a qualifying auto enrolment scheme
• Establish which of your employees are eligible
• Communicate with all employees
• Choose a pension provider with a default
investment fund
8. You need to consider:
• How long will the scheme take to set up?
• How much does the scheme cost me and
my employees?
• How easy is the scheme to use?
• Is this the best solution for my employees?
10. Employees must be auto enrolled
and begin to make contributions to
your work based pension if they:
Earn more than
10k per year Work in the UK
Your employees who fall outside these criteria can choose to join a work based pension scheme.
Are aged
between 22 and
State Pension Age
12. The True Potential LLP group
of companies is one of the
fastest growing financial
services and technology
firms in the UK.
13. We are a well respected
financial force who provide
investments, technology and
support services to 22% of
all UK Financial Advisers
and their clients.
15. Administrators of
£88bn of assets
on behalf of True
Potential end clients.
(as of 31 December 2013)
The Group had a
turnover of £27.5M
for 2013, an increase
of 112% on the
previous year
Net profit for 2013,
increased by 47%
over 2012 (£5.3m)
16. Launched a first-of-
its-kind impulseSave®
investment top-up
technology to the
public in March 2014.
There are over
18,000 users and
32,000 private
clients using our
single intergrated
wealth platform.
(As of 31 December 2013)
One of 74 UK
companies to apper
withing the Deloitte
Technology Fast 500
EMEA for 2013.
17. Why do employers choose
True Potential Investor
for auto enrolment?
19. Qualifying auto enrolment scheme:
• Our auto enrolment scheme has a default L&G
‘balanced’ fund that meets the Government’s
pricing criteria
• You can also choose from a range of five risk-
based L&G funds to suit your employees, all
under the Government’s price cap
20. Simple setup:
• You receive a one-to-one service to seamlessly
intergrate the new system
• Set up your scheme to suit your business
and employees
21. Easy to manage:
• The system helps you, or your accountant, stay
on top of your auto enrolment obligations with
alerts and messages when you need to act
• After you’re set up, our dedicated support team
is here to help with any questions
22. Mr J Smith
1 Random House
Durham
DH7 7ZK
Dear [insert name]
To help people save more for their retirement, the government now requires all employers in the public
and private sector to enrol eligible workers into a qualifying workplace pension scheme.
To comply with the new legislation, all eligible workers will be enrolled. We are enrolling you into the
True Potential Pension Scheme. To find out more information about the Scheme, visit TP Landing page.
What does this mean for you?
[Employers name] and you will both pay into it every month. The payments into your pension will be
taken directly from your monthly pay and will include your contributions including tax relief and our
contribution as follows:
• Our contributions of [insert exact percentage].
• Your contributions of [Insert exact percentage].
• You can choose to opt out of the Scheme if you want to but if you stay in, you will have your own
pension which you get when you retire.
• You will receive tax relief on your contributions.
• Your pension belongs to you, even if you leave our employment in the future.
What you need to do now?
This depends on what you want to do. You have two options:
1. If you want to join the pension scheme on [insert Auto Enrolment date], you don’t have to do anything
and your personal details will be passed on to True Potential.
2. If you do not want to join the pension scheme, you can opt out from [insert start date of opt out
period]. You cannot opt out until after you have been enrolled into the scheme. The end date of your opt
out period will be either one month or three months later, depending on the scheme rules and the Auto
Enrolment Regulations 2010.
Yours sincerely
[Insert name of signatory]
a b c
Because there aren’t enough of us saving for our retirement the Government have launched a
new scheme called auto enrolment. The initiative means that every employee (who is eligible) is
automatically opted into a work based pension. It’s an excellent way to grow your savings because
not only do you contribute yourself, so does your employer while the Government tax relief also
boosts contributions which makes for greater savings and a far brighter future.
Powered by
If you’re in, you’re infor a nice surprise.
Auto enrolment is coming.
Because there aren’t enough of us saving
for our retirem
ent the Government have launch
ed a
new scheme called auto enrolm
ent. The initiative means that every employee (who is eligible) is
automatically opted into a work based
pension. It’s an excellent way to grow your savings because
not only do you contribute yourself, so does your employer while the Government tax relief also
boosts contributions which makes for greater savings and a far brighter future.
Powere
d by
If you’re in, you’re infor a nice surprise.Auto enrolment is coming.
Because there aren’t enough of us saving for our retirement
the Government
have launched a
new scheme called auto enrolment.
The initiative means that every employee
(who is eligible) is
automatically
opted into a work based pension. It’s an excellent way to grow your savings because
not only do you contribute
yourself, so does your employer while the Government
tax relief also
boosts contributions
which makes for greater savings and a far brighter future.
Powered
by
Join the people saving
for a better future.
Auto enrolment is coming.
• The system generates all mandatory
communications for you
• All employee documents are stored in your
employees’ online account
Employee communication:
25. Your employees can:
• Choose a target retirement date
• Set a realistic goal amount for their pension
using our income calculator
• Choose from a range world-class investment funds
27. • Decide how much risk they are willing to take
• Top-up their pension from £1 at any time using
our first-of-its-kind impulseSave® feature
Your employees can:
29. What’s next?
• Any questions?
• Agree and sign the service contract
• Implementation team will be in touch to
guide you through setup
• Register with ‘The Pensions Regulator’ no later
than five months after your staging date
30. Disclaimer
Your capital is at risk, investments can fluctuate in value and investors may not get the amount back they
initially invest. Past performance is not a guide to future performance. Tax rules can change at any time.
TPI Pension eligibility and tax rules apply.
True Potential Investor is a trading name of True Potential Investments LLP which is authorised and regulated
by the Financial Conduct Authority. FSR no 527444. Registered in England and Wales
No OC356027. www.fca.org.uk.
True Potential Investor and this website together with the relevant documents do not represent personalised
advice and is not confirmation that any of the products/funds match your financial requirements. If you should
have any doubt about whether something meets your needs you should seek financial advice in order that
your individual circumstances can be considered. If you do not already have an adviser, financial advice is
available from our sister firm, True Potential Wealth Management.
Registered Head Office: Newburn House, Gateway West, Newburn Riverside, Newcastle upon Tyne, NE15 8NX
London Office: 42-44 Grosvenor Gardens, Belgravia, London, SW1W 0EB.