In-Accountancy

News and Views

Am I eligible for automatic enrolment?

We are receiving a lot of enquiries from new businesses and employees about auto enrolment pensions, so for those of you who aren’t sure whether this impacts you, your business, or your employees we have prepared the below guide:

For automatic enrolment, employees fall into three categories depending on age and salary. Employees who already belong to a qualifying workplace pension scheme are not eligible for automatic enrolment.

Here’s a table to show which category you could fall into:

     EARNINGS AGE
16 – 21 22 – State pension age State pension age – 74
Less than or equal to ÂŁ5,876 Entitled worker
Over ÂŁ5,876 and up to ÂŁ10,000 Non-eligible jobholder
ÂŁ10,000+ Non-eligible jobholder Eligible jobholder Non-eligible jobholder

 

So, what do these terms actually mean??

Eligible jobholder

Eligible jobholders will be automatically enrolled into their workplace pension scheme.

If you choose to remain in the scheme, you will benefit from contributions from your employer. You will both need to meet the minimum contribution levels.

If you’ve previously opted out of the scheme, you will be re-enrolled again every three years if you are still eligible.

Non-eligible jobholder

Non-eligible jobholders will not be automatically enrolled into their workplace pension scheme but can ask to join.

If you opt to join the scheme, you will benefit from contributions to your pension from your employer. You will both need to make minimum contributions.

Entitled workers

Entitled workers will not be automatically enrolled into their workplace pension scheme but can apply to join a company pension scheme.

Your employer will contact you to give you the opportunity to join a pension scheme but is not obliged to contribute on your behalf.

 

If you do have any further questions about auto-enrolment or payroll and pensions in general, please do drop us a line or give us a call and one of the team will be happy to help.

0161 456 9666 / askus@in-accountancy.co.uk

Related articles

Accountants for Amazon Sellers
Limited Companies

Amazon Sellers – top tips to ensure your long term success

Have you ever considered selling on Amazon or eBay, setting up an eCommerce business, or a little side hustle?

If this sounds like you, it seems you are not alone.

More and more people these days are selling online to boost their income, sometimes just for a bit of fun and with no higher plans, and other times in the hopes of turning this so called side hustle into their dream job and their very first foray into entrepreneurship…

We have been receiving lots of enquiries recently about accounts and tax for Amazon sellers, so I’ve recorded a little video outlining our top tips if you are thinking about giving it a go yourself…

Read More »

Find out how we can help?

Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.

 

Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy

    IN-ACCOUNTANCY