Pension Auto-Enrolment Legislaton

Pension auto-enrolment legislation

Pension auto-enrolment does apply to contractors working under an umbrella company. This means that employers will be automatically enrolling contractors into a workplace pension. The pension contributions are based on age and income.

The amount you and your employer pay towards the pension depends on:

  • what type of workplace pension scheme you’re in
  • whether you have been automatically enrolled or if you have opted in
How your take-home pay changes (from the Government Site)

Joining a workplace pension scheme means that your take-home income will be reduced. But this may:

  • mean you’re entitled to tax credits or an increase in the amount of tax credits you get (although you may not get this until the next tax year)
  • mean you’re entitled to an income-related benefit or an increase in the amount of benefit you get
  • reduce the amount of student loan repayments you need to make
Workplace pension contributions

Date

From April 2018

From April 2019

Employer pays (min)

2%

3%

You pay

3%

5%

Total min contribution

5%

8%

These contributions could be higher for you or your employer depending on your specific pension scheme rules.

In some schemes, your employer has the option to pay in more than the legal minimum. In these schemes, you can pay in less as long as your employer puts in enough to meet the total minimum contribution. Check all details with your umbrella company.

Your Umbrella Company Must Comply

As an employer, all umbrella companies will have to comply with the legislation over the coming months.

The legislation states that contributions from employers must be a minimum of 1% of qualifying earnings. This will rise to 3% in 2018.

Contractors i.e. the employees of umbrella companies must also contribute at least 1% of their earnings which will increase to 5% by 2018.

See: Government Information about Workplace Pensions.

Read the full pensions auto-enrolment legislation.

Read More

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the best take home pay

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Pension Auto-Enrolment Legislaton

Pension auto-enrolment legislation

Pension auto-enrolment does apply to contractors working under an umbrella company. This means that employers will be automatically enrolling contractors into a workplace pension. The pension contributions are based on age and income.

The amount you and your employer pay towards the pension depends on:

  • what type of workplace pension scheme you’re in
  • whether you have been automatically enrolled or if you have opted in
How your take-home pay changes (from the Government Site)

Joining a workplace pension scheme means that your take-home income will be reduced. But this may:

  • mean you’re entitled to tax credits or an increase in the amount of tax credits you get (although you may not get this until the next tax year)
  • mean you’re entitled to an income-related benefit or an increase in the amount of benefit you get
  • reduce the amount of student loan repayments you need to make
Workplace pension contributions

Date

From April 2018

From April 2019

Employer pays (min)

2%

3%

You pay

3%

5%

Total min contribution

5%

8%

These contributions could be higher for you or your employer depending on your specific pension scheme rules.

In some schemes, your employer has the option to pay in more than the legal minimum. In these schemes, you can pay in less as long as your employer puts in enough to meet the total minimum contribution. Check all details with your umbrella company.

Your Umbrella Company Must Comply

As an employer, all umbrella companies will have to comply with the legislation over the coming months.

The legislation states that contributions from employers must be a minimum of 1% of qualifying earnings. This will rise to 3% in 2018.

Contractors i.e. the employees of umbrella companies must also contribute at least 1% of their earnings which will increase to 5% by 2018.

See: Government Information about Workplace Pensions.

Read the full pensions auto-enrolment legislation.

Read More

The quickest way to get
the best take home pay

Stop losing your hard earned cash!

Fill in your details below and start saving now!

Your information is safe: Privacy Policy