FOR NEW EMPOLYERS :
Date on which PAYE income was / will be first payable |
‘ Staging date ’ |
1 Apr 2012 to 31 Mar 2013 |
1 May 2017 |
1 Apr 2013 to 31 Mar 2014 |
1 Jul 2017 |
1 Apr 2014 to 31 Mar 2015 |
1 Aug 2017 |
1 Apr 2015 to 31 Dec 2015 |
1 Oct 2017 |
1 Jan 2016 to 30 Sep 2016 |
1 Nov 2017 |
1 Oct 2016 to 30 Jun 2017 |
1 Jan 2018 |
1 Jul 2017 to 30 Sep 2017 |
1 Feb 2018 |
Minimum levels of pension contribution
Small businesses must pay a certain minimum percentage of salary , and there is also a minimum total contributed by the firm plus the worker , towards a workplace pension scheme . These minima rise progressively during 2017 / 18 ( see below ). The split of contributions is to some extent up to you , so long as you at least abide by these floor percentages :
Periods Minimum firm ’ s contribution Minimum total contribution ( firm + worker )
Up to 30 Sep 2017 1 % 2 % 1 Oct 2017 to 30 Sep 2018 2 % 5 % From 1 Oct 2018 3 % 8 %
Opting out – not an option
Whereas your workers do have a limited opt-out window , normally the first month after validation of their enrolment , you as an employer do not have such a right – your obligation is to operate a pension scheme .
The penalty for failing to do so can reach £ 5,000 – you may merely get a warning for a minor infringement but you cannot simply ignore the new regulations .
That is why we at Odiri Tax Consultants are ready and able to help you set up your new scheme . We are expert in providing all payroll services for small businesses . Let ’ s talk about your needs .