Changes To Auto-Enrolment In 2018
Boring, but important ...
POSTED BY JONATHAN VOWLES ON 27/03/2018 @ 8:00AM
Workplace pension auto-enrolment is one of those boring, but essential things that every employer needs to know. In particular, every employer needs to get it right or face a nasty fine ...
There are some boring but important changes coming to auto-enrolment in 2018!
copyright: andreypopov / 123rf stock photo (licensee)
When auto-enrolment was introduced, the contribution was set at a base level of 1%. On 5th April 2018 that is going up; and it will increase again on 5th April 2019. So this week's blog post is all about what to do next.
"There are two issues that you
need to address!"
Firstly, making sure that you comply with the auto-enrolment rules and getting this April's changes right. Secondly, making sure that you budget for this year's change, and for next year's too, and review the impact on your costs and margin. There is a silver lining here: what opportunity does this give you within your business?
So what are the changes? This table sets out the rates:
The rules say that the total minimum contribution must be made each month, however, the employer can pay more and the employee less. Equally, the employee can pay more, but the employer must always pay their minimum contribution.
What does this mean for your business? Being in business is often a balancing act. Juggling and balancing your costs and your charges. When was the last time you reviewed your prices? Do you regularly look at your margins and profitability and what does an increase in your staff wages costs mean for your business?
"Finding the silver lining in a change that will increase your costs and your employees take home pay isn't always easy!"
If you need help with either your auto-enrolment and payroll needs, or in budgeting or reviewing costings and profitability then give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and discover how Jonathan Vowles Chartered Accountants can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.