Guide to enrolling your first employee for automatic enrolment

  • by Carole Jordan
  • 09 Oct, 2017
enrolling your first employee for automatic enrolment businessheads brighton accountants and consultants

Taking on your first employee can be an exciting time but there are some responsibilities you need to be aware of. One of them is compulsory pensions these are your auto-enrolment responsibilities. Find out what this means below.

So, you're thinking of taking on your first employee?

If that’s the case, then you’ll need to consider the auto-enrolment implications on your business. We’ve talked a lot about auto-enrolment for small businesses, you can find our series of blogs on our free support pages . If you don’t know what auto-enrolment is, then check out our auto-enrolment fact sheet first.

From October 1st 2017 your auto enrolment duties start from your employees first day of work. So you need to be thinking about this long before taking on a new member of staff. Firstly, you need to consider if the employee would be eligible for an auto-enrolment pension scheme.

Will your new employee be…

  • aged between 22 up to State Pension Age
  • and earn over £10,000 per year or £833 per month or £192 per week

If your employee fits these criteria then you’ll need to choose and setup an appropriate pension scheme, which you and your employee will contribute to each month. The percentage of contribution will go up each year, see our blog about compulsory pension contributions increasing .

If your employee won’t be eligible, then you’ll just need to write to the Pensions Regulator, and your employee, detailing how you’ve met your auto-enrolment duties. We would suggest having a plan in place for future, in case they become eligible, or you’re considering taking on more employees. See our blog on choosing a pension scheme for more advice.

The Pensions Regulator has a wealth of information on this subject, see their Automatic Enrolment for Employers page . This will give you a deeper understanding of what’s required and help you get things started.

Non-compliance comes at a heavy price and the first company has been prosecuted for non-compliance by not putting their staff into a scheme. You can read more about this here .

Compulsory pensions and auto-enrolment is not as complicated as it first looks so don’t be daunted by the task. As business advisors and consultants we’re able to advise on this topic, and help you understand the implications for your business. Give us a call on 01273 882200.


If you're looking for more auto-enrolment advice then head over to our auto-enrolment knowledgebase

If you enjoyed the blog, why not leave us a comment, or share it with a friend...

Free advice delivered to your inbox

Browse our other blog posts...

Our latest blog

by Carole Jordan 19 Jan, 2018

It’s always nice to reward your employees, especially those who may have worked for your business for a long time. Find out how you can do this and still reap the tax benefits.

by Carole Jordan 12 Jan, 2018
Now, more than ever, exporting across the world offers an opportunity not seen for many decades. 

If you want to grow your exports then the government want to help you on your way with Finance, Insurance and opportunities to meet potential customers. Yippee!

by Carole Jordan 08 Jan, 2018

There’s a hidden gap in skills and knowledge between those of us who are qualified Accountants, and those who refer to themselves as Accountants.  Every day we make an investment in your business to ensure you receive the quality of advice you need to protect your business.

by Carole Jordan 03 Jan, 2018

It’s January and its ‘National Pay Your Self-Assessment Tax Month’!
Your tax return should be safely in the HMRC net now but if you didn’t file before 12th December you will not receive a statement and payslip in the post. In any case, it’s best to brace yourself for making the payment as the statements are drip feeding very slowly through the postal system as I write.

by Carole Jordan 15 Dec, 2017
An easier way to pay your impending tax bill could be through your PAYE tax code. Find out if you qualify and how you can go about setting this up.
More posts
Share by: