Auto Enrolment for a New Business

From October 1st, any new business will have an Auto Enrolment Duties Start Date rather than a staging date.

When a new business hires their first employee, they must instantly comply with their auto enrolment responsibilities and follow the auto enrolment rules. New employers must complete the following steps:

Register for PAYE with HMRC

As soon as you start hiring people, you should register with HMRC as an employer. Before the first payday, you must register. You have up to two months to register before your first payday; however, PAYE registration can take up to two weeks. The majority of new businesses can register online. Alternatively get in touch and we can do this for you.

Setup an Auto Enrolment Pension Scheme

You’ll need to find a pension plan that works for both you and your employees. When picking a scheme, there are several factors to consider, including the prices and charges associated, as well as whether the scheme is compatible with your payroll software. More information is available from the Pensions Regulator (TPR).

Workforce Assessment

You must conduct a formal assessment of all employees to determine that they are eligible for Auto Enrolment. This will ensure that employees receive the appropriate notification at the appropriate time, as well as that all eligible employees receive the correct pension contribution amount. This task begins on the first day of your auto enrolment tasks and continues each time you process your payroll.

Auto Enrolment Communications to all Staff

Employers must notify all employees in writing (email is acceptable) about the pension scheme into which they have been automatically enrolled, as well as details on how to opt out of the programme if they choose, or how to opt into the scheme if they have not been automatically enrolled.

Registration with The Pensions Regulator (TPR)

After you’ve registered as an employer with HMRC, this will happen immediately. TPR will contact new employers with their ‘letter code’ after your PAYE registration has been processed. The Letter Code is a ten-digit code supplied by TPR to all employers to help them fulfil their employer responsibilities and complete the declaration of compliance.

We have a specialist payroll team at Interface Accountants who can assist your company with all elements of Auto Enrolment. Please contact us to learn more about our payroll services and how we can assist you with your auto enrolment responsibilities.

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