ENTREPRENEUR HANDBOOK

No Result
View All Result
  • Finance
  • Technology
  • Marketing
  • Human Resources
  • Insurance
  • Legal
  • Procurement
  • eCommerce
  • Leadership
Advertisement
ENTREPRENEUR HANDBOOK
No Result
View All Result
ENTREPRENEUR HANDBOOK
No Result
View All Result
Accounting & tax

Pension auto enrolment: What small businesses need to know

Workplace pensions have become mandatory for small businesses, learn how it affects you

By Editorial team | Updated July 27, 2021 (Published 10/3/2016)

Related posts

  • Top 13 marketing automation software tools for small businesses
  • Why small businesses need to take cybersecurity more seriously
  • How to do accounts for small businesses

If you haven’t seen it across the news, UK small businesses are now required by law have to offer and contribute to workplace pensions for employees earning above £10,000 a year in the year, in practice that means pretty much every employee.

Related posts

Tax Investigation – How HMRC is linking it all together

Restructuring options to help distressed businesses

Do you need a business bank account as a sole trader?

In the age-old words of The Hitchhiker’s Guide to the Galaxy: “Don’t Panic!” but you should be on top of this to avoid any penalties or fines. So what exactly is this, what do you have to do and by when? Deadlines for automatic enrolment have now passed, meaning you need to be enrolled or enrol as soon as possible.

Decide on a pension scheme

It’s key that once you know the date, you select a pension provider and scheme. There’s a good number of pension providers out there, with a few of the biggest players being Hargreaves Landsdown and Fidelity.

Pensions are a new area for many entrepreneurs (us included), and we highly recommend you do exactly what we did and either speak with your accountant who should understand this and know options or take a look yourself using tools like Unbiased for finding independent financial advisers that can help.

There’s a big difference in pensions schemes regarding cost, benefits and investments. It’s well worth taking a look yourself and speaking with someone who knows the score and has your best interest at heart because you’re paying them because they think you’re awesome or both!

Create your pension budget

Don’t worry, the UK government isn’t making you contribute 1700% of your employees’ salaries to a pension, the minimum workplace pensions contribution must be 8% with employers paying a minimum rate of 3% towards this total (2019/2020). Still, if you’re a small business, are growing and employing a bunch of people that’s not a small amount of money. You can work out your exact contributions here at the pension regulators site.

Now, that likely isn’t in your budget, and you don’t want to close down the Friday startup beer fund, so it’s important you build in your pension costs into your financial plan. On the plus side, your national insurance bill will be lower, as contributions for employee pensions will come out of gross earnings, so NI pay will be less.

Speak to a financial adviser

Now if you know an extraordinary amount of pensions you probably don’t need an advisor but we highly recommend you get one if you don’t or research and use comparison tools/ speak to companies to find the right fit for your needs. As with anything related to the HMRC the standard line is to put it off to the last. With pensions auto-enrolment, we recommend you get on it now, as demand is increasing as more small businesses come on board and thus options are lowering, and prices are going up!

Related topics

Tags: HMRCSmall business pensions

Related Posts

Accounting & tax

Tax Investigation – How HMRC is linking it all together

Since the beginning of lockdown preserving the UK economy has been a top priority for the Government, which has been...

Published by Simon Smith
27th July 2021
Read more
Finance

Restructuring options to help distressed businesses

If your business is deteriorating, whether this is at a slow or rapid pace, it is instrumental to act fast...

Published by Keith Tully
24th October 2020
Read more
Banking & payments

Do you need a business bank account as a sole trader?

As a sole trader, you are not legally required to have a business bank account – and like many, you...

Published by Daniel Tannenbaum
30th March 2021
Read more
Advertisement
Advertisement
Entrepreneur Handbook

Copyright © 2013 – 2025 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, UK.

Sections

  • Finance
  • Technology
  • Marketing
  • Human resources
  • Insurance
  • Legal
  • Procurement
  • eCommerce
  • Leadership
  • Luxury
  • Start a business

Information

  • Advertise with us
  • Privacy policy
  • Terms of use
  • Contact us

Copyright © 2013 – 2025 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, UK.

  • Finance
  • Technology
  • Marketing
  • Human resources
  • Insurance
  • Legal
  • Procurement
  • eCommerce
  • Leadership
  • Advertise with us
  • Privacy policy
  • Terms of use
  • Contact us

Copyright © 2013 - 2025 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, United Kingdom.