Auto Enrollment 

Over a three year period effective 2012 the face of UK pensions will change forever. Employers will be legally obliged to auto enroll their staff into a pension plan - instead of presenting them with information or leaving them to ask to join one. It is hoped that inertia will encourage the huge numbers with no pension provision to start saving for their retirement.

The key point is that once fully implemented the employer will have to contribute at least 3%, the employee 4% and the govenment will offer a 1% tax break equivalent to basic rate relief on employee contributions. It is also worth noting that the employer will receive corporation tax relief on their element of the contribution and that NI is not charged on pension contributions.

The rules are employees must be auto enrolled into a pension not auto enrolled into Nest. We regard Nest as unsuitable for many employers.

We offer a consultancy service on implementing auto enrollment and a support & administration service for those employers who need to review existing or implement a new company pension.

Call Simon on 01233 722922 for further information.