Auto Enrolment for Employers
What and Who From sometime between 2013 and 2017 (dependent on the size of business from largest to smallest), employers will have to automatically enrol all eligible employees in a qualifying pension scheme and make contributions to their plan. Eligible employees fit the following criteria: Are not already in a qualifying pension scheme Are aged 22 and over Are under State pension age Earn more than £10,000 per year and work in the UK When Medium employers (50 – 249 workers) April 2014 to April 2015 Small employers (49 workers or less) June 2015 to April 2017 How Much The government has set a minimum amount that must be paid into a pension scheme for eligible and non eligible jobholders.This is 8% of qualifying earnings, phase in over several years: Now – 30/09/2017 – Employers 1% Employees 1% 1/10/2017 – 30/09/2018 – Employers 2% Employees 3% 1/10/2018 onwards – Employers 3% Employees 5% Safeguarding Employees Fixed penalty of £400 to an employer, for non…
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Budget 2014 Highlights
The Government certainly pulled an enormous unexpected Rabbit out of that hat yesterday with a series of unparalleled pension reforms. There was also good news for savers with a more than anticipated boost to the annual ISA allowance. Pensions Highlights Immediate changes: Capped drawdown – increase the maximum you are able…
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