Staging Date has gone and so has Extension. From 01 Oct 2017 Auto Enrolment compliance is stricter
With the onset of second phase of Auto Enrolment from October 1st, 2017, there are some major changes which are going to affect all the new employers from the date they have employed their first staff member.
Earlier all the employers were issued with a staging date based onto their PAYE scheme. This is the date from when their legal duties have started. However, the legal duties for all the employers employing a person for the first time after October 1st, 2017, will start as soon as they employ their first staff member. There will no longer be a staging date for such employers, and hence their duties start from the very first day the employee joins the workplace.
If you are planning to employ your first staff after October 1st, 2017, this is what you should look for.
Duties for new employers with a PAYE Scheme
First and foremost thing to do is inform The Pension Regulators who should be their point of contact for automatic enrolment. Followed by other duties like conduct a formal assessment, write to your staff, set up a pension scheme, enrol all eligible employees and so on.
Even if your staff does not earn as per the current threshold of £833 a month or £113 a week, you are required to formally write to them and if the employee asks to be put into a scheme, it is your duty to set it up for him and complete the Declaration of Compliance
Duties for new employers without a PAYE Scheme
If your staff earn £113 per week (£490 a month) or below, HMRC may not require you to set up a PAYE scheme but you still have certain automatic enrolment duties and you must start to complete them as soon as you employ your first member of staff:
- you must write to your staff to tell them how automatic enrolment applies to them
- if your staff then ask in writing to be put into a pension scheme, you must set this up for them but you do not have to pay into it
When your staff member starts earning more than £113 per week, you must set up a PAYE scheme with HMRC. You must also conduct a formal assessment to work out if they need to be put into a pension scheme that you must also pay into.
As the penalties for non-compliance is huge, it is advisable to plan things ahead of time. DNS has the expertise to help you deal with all the auto-enrolment requirements so as to keep you one step ahead of the taxman by ensuring full compliance.
Contact DNS now to help you with all your compliance requirements of Auto enrolment and you continue to focus on your business.
To know more about changes in Auto-Enrolment, email us on firstname.lastname@example.org or call us on 02089036330 Ext. 127