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Updates from the Clayton & Brewill team.
Auto-enrolment duties – changes for new employers
From 1st October 2017, there will be a change to auto-enrolment duties for new PAYE schemes. Sarah Pownall, Payroll Manager at Nottingham chartered accountants, Clayton & Brewill explains the changes and what it means for new employers.
Currently, new employers are given a ‘staging date’, which provides some breathing space before their auto-enrolment duties commence. However, from 1st October 2017 auto-enrolment duties will commence from day one of employing a member of staff. With the 1st October only a matter of weeks away, it’s important that potential employers are aware of the change and their immediate responsibilities.
What are the auto-enrolment duties for new employers from 1 October 2017?
If you become an employer for the first time on or after 1 October 2017, you will immediately have legal duties for your new member(s) of staff. These duties apply from the first day the first member of staff starts working for you. This is known as your duties start date. You must comply with your duties straight away.
When you are about to employ a worker for the first time, there are various things to consider, such as determining whether you need to register as an employer with HMRC or taking out liability insurance. Getting ready for auto-enrolment is another of these steps.
As soon as your new member of staff begins employment, you should be ready to comply with your duties. To ensure you are ready to do so, you will need to:
- Review if your employee is eligible
- Review your payroll processes and procedures
- Select an appropriate pension scheme (if necessary)
- Enrol relevant employees
- Inform employees
- Be aware of your on-going duties
- Complete a Declaration of Compliance
To ensure compliance, it’s important that you have the above in place in advance of your employee’s first pay date.
Auto-enrolment help and advice
The Pensions Regulator website provides lots of useful information and guidance on the tasks you need to complete in order to comply with your duties.