Transcript Document

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About Argentis
 Financial Planning and Wealth Management Business
 Independent and whole of market advice
 Argentis has Chartered Status – Chartered firms must ensure staff
members acquire and retain the necessary knowledge and skills to
deliver the highest quality advice
 Offices – Canterbury, London, Salisbury & Cobham
 20 highly qualified advisers
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Auto-Enrolment
• The process of automatically enrolling employees into a
qualifying workplace pension or similar scheme has begun.
• The largest UK Employers are now past their staging dates
having auto enrolled all non pension scheme workers.
• SME’s to auto enrol over the next 12 to 18 months.
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Auto-Enrolment
• Auto Enrolment is less about pensions and more about
business planning, processes and systems
• Planning ahead is essential
• If you have less than 6 months until staging and have not
started planning immediate action is required
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What will employers have to do?
Employers will be required by law to:
• Set up & register a suitable pension scheme.
• Provide Pension/Auto-Enrolment information to employees.
• Enrol all eligible employees into a qualifying scheme.
• Confirm all relevant steps taken to The Pensions Regulator.
• Pay contributions for all eligible employees, unless they choose
to opt-out of the scheme.
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When will this affect employers?
Every employer has been allocated a ‘Staging Date’, when they must comply with the new legislation.
Employer PAYE Size (April 2012)
Staging Date
350 to 499
01 January 2014
250 to 349
01 February 2014
160 to 249
01 April 2014
90 to 159
01 May 2014
62 to 89
01 July 2014
61
01 August 2014
60
01 October 2014
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01 November 2014
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01 January 2015
54 to 57
01 March 2015
50 to 53
01 April 2015
The key Staging Dates have been amended slightly with a delay for employers with less than 50 workers.
You can find your staging date via
http://www.thepensionsregulator.gov.uk/employers/tools/staging-date
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Staging dates cont.
PAYE scheme size or reference
Staging date PAYE scheme size or reference
Staging
date
Less than 30 with PAYE no. 92, A1-A9, B1-B9, AA-AZ, BA-BW, M1-M9, MA-MZ,
Z1-Z9, ZA-ZZ , 0A-0Z, 1A-1Z or 2A-2Z
01-Jun-15
01-Oct-16
Less than 30 with PAYE reference number BX
01-Jul-15
40-49
01-Aug-15
Less than 30 with PAYE reference number BY
01-Sep-15
Less than 30 with PAYE no. 70-83, X1-X9, Y1-Y9, XA-XZ or YA-YZ
01-Feb-17
30-39
01-Oct-15
Less than 30 with PAYE no. P1-P9 or PA-PZ
01-Mar-17
Less than 30 with PAYE reference number BZ
01-Nov-15
Less than 30 with PAYE no. 84-91, 93-99
01-Apr-17
Less than 30 with PAYE no. 02-04, C1-C9, D1-D9, CA-CZ or DA-DZ
01-Jan-16
Less than 30 unless otherwise described
01-Apr-17
Less than 30 with PAYE no. 00 05-07, E1-E9 or EA-EZ
01-Feb-16
Employer who does not have a PAYE scheme
01-Apr-17
Less than 30 with PAYE no. 01, 08-11, F1-F9, G1-G9, FA-FZ or GA-GZ
01-Mar-16
Less than 30 with PAYE no. 12-16, 3A-3Z, H1-H9 or HA-HZ
01-Apr-16
Less than 30 with PAYE no. I1-I9 or IA-IZ
01-May-16
Less than 30 with PAYE no. 17-22, 4A-4Z, J1-J9 or JA-JZ
01-Jun-16
Less than 30 with PAYE no. 23-29, 5A-5Z, K1-K9 or KA-KZ
01-Jul-16
Less than 30 with PAYE no. 30-37, 6A-6Z, L1-L9 or LA-LZ
01-Aug-16
Less than 30 with PAYE no. N1-N9 or NA-NZ
01-Sep-16
Less than 30 with PAYE no. 38-46, 7A-7Z, O1-O9 or OA-OZ
Less than 30 with PAYE no. 47-57, 8A-8Z, Q1-Q9, R1-R9, S1-S9, T1-T9, QA-QZ,
01-Nov-16
RA-RZ, SA-SZ or TA-TZ
Less than 30 with PAYE no. 58-69, 9A-9Z, U1-U9, V1-V9, W1-W9, UA-UZ, VA01-Jan-17
VZ or WA-WZ
New employer (PAYE income first payable between 1 April 2012 and 31
March 2013)
New employer (PAYE income first payable between 1 April 2013 and 31
March 2014)
New employer (PAYE income first payable between 1 April 2014 and 31
March 2015)
New employer (PAYE income first payable between 1 April 2015 and 31
December 2015)
New employer (PAYE income first payable between 1 January 2016 and 30
September 2016)
New employer (PAYE income first payable between 1 October 2016 and 30
June 2017)
New employer (PAYE income first payable between 1 July 2017 and 30
September 2017)
01-May-17
01-Jul-17
01-Aug-17
01-Oct-17
01-Nov-17
01-Jan-18
01-Feb-18
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Capacity Issues?
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Auto-Enrolment: The First Steps
• Assess your workforce (working or ordinarily working in the UK).
(HR/Legal )
Argentis can help
• Determine what contribution basis will be used.
(Finance/HR)
Argentis can help
• Determine what qualifying pension scheme(s) will be used.
(Finance/HR/Payroll)
Argentis can help
• Establish the auto-enrolment process.
(HR/Legal/Payroll/Finance)
Argentis can help
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Assess the workforce
Earnings
16-21
Under £5,772
£5,772 to £10,000
Non-eligible jobholder
(£481 to £833 pm)
(over £833pm)
Eligible jobholders
Non-Eligible jobholders
Entitled Workers
SPA-74
Entitled worker
(£481 pm)
Over £10,000
22-SPA
Non-Eligible
Jobholder
Eligible jobholder
Non-Eligible
Jobholder
Auto Enrol?
Can Opt-in/Join?
Employer
Contribution
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How much will this cost?
The minimum contributions paid to a qualifying scheme is
being phased in as follows:
Staging Date
September 2017
October 2017 to
September 2018
October 2018
onwards
Total Minimum
Contribution
2%
5%
8%
Employer Minimum
Contribution
1%
2%
3%
Employee Contribution
1%
3%
5%
The minimum contributions are a % of band earnings between £5,772 and £41,865
(known as,‘Qualifying Earnings’) for 2014-15.
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TIER ONE, TWO & THREE CAN BE PHASED
Qualifying Earnings
£5,772-£41,865
Tier 1 – basic salary
Tier 2 – basic salary
(85% rule)
Tier 3 – total earnings
Staging Date to
September 2017
October 2017 to
September 2018
October 2018
onwards
1% employer
2% employer
3% employer
1% employee
3% employee
5% employee
2% employer
3% employer
4% employer
1% employee
3% employee
5% employee
1% employer
2% employer
3% employer
1% employee
3% employee
5% employee
1% employer
2% employer
3% employer
1% employee
3% employee
4% employee
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Postponement of Auto Enrolment?
• Postponement enables employers to delay Auto Enrolling some or all eligible
employees by up to 3 months.
• So if the Staging Date is 1 April 2015, Postponement can be any length of time up
until 1 July 2015.
• Postponement can help employers manage short-term contract or temporary staff
and those that have a ‘spike’ in earnings, or, to align with payroll processes.
• Simplicity is often the best strategy, but you can have different dates for different
workers.
• All you need to do is send a postponement notice to each individual within 6 weeks
of staging (or joining), ensuring that all of the relevant information is included.
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What must employers not do?
• Offer Advice
• Discourage Membership
• Encourage jobholders to opt out
• Distribute the Opt Out form
• Use ‘prohibited recruitment conduct’
carries Fixed Penalty Fines ranging from £1,000 - £5,000
• Create barriers to the auto-enrolment process
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Doing nothing is not an option!
Fines from the Pensions Regulator
Stage 1 – A compliance / unpaid contribution notice
Will require remedial action within set timescale
Stage 2 – Fixed Penalty of £400
Notice will include requirement to put right the breach
Stage 3 – Escalating daily penalties
Number of Persons
Prescribed Daily Rate
1-4.
£50
5-49.
£500
50-249
£2,500
250-499
£5,000
500+
£10,000
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Auto Enrolment challenges
• Dealing with initial and ongoing assessment of workforce
• Providing statutory notices to jobholders at Staging and each pay reference
period thereafter
• notice to entitled workers about the ability to opt in
• notice to non eligible workers about the ability to opt in and receive an employer
contribution
• notice to eligible jobholders that they will be auto enrolled
• Postponement notice if applicable
• Arranging payment of the contributions correctly and on time
• Dealing with Opt Outs, Opt Ins
• Dealing with re enrolments (every 3 years!!)
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Typical Data Requirements
for Auto Enrolment Systems
Title
First Name
Last Name
Birth Date
Gender
NI No.
Nationality
Address Line 1
Address Line 2
Address Line 3
Address Line 4
Postcode
In Scope of AE
Telephone No
Email Address
Contractual Scheme Join Date
Requested Scheme Join Date
Opt Out Date
Members Cessation Date
Deceased Date
Employment Terminated Date
Pension Provider Working Group
Employment Start Date
Pay Group
Pay Date
Total Assessment Earnings
Total Pensionable Earnings
Employer Contribution Percentage
Employee Contribution Percentage
Employer Regular Contribution Amount
Employee Regular Contribution Amount
Employer Single Contribution Amount
Employee Single Contribution Amount
Need to consider if this information is up to date, correct and easily assessable.
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Act now (at least 6 months before your Staging Date)?
•Know your staging date
•Assess your workforce
•Review existing arrangements
•Analyse the contribution options
•Make the high level commercial decisions
• contribution basis and phasing
• categories of workers
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Act now (at least 6 months before your Staging Date)?
Once the high level decisions have been made
• Decide on a suitable pension provider
• Establish processes between payroll,
provider and employer to successfully
deliver AE
• Employee engagement and communication
strategy
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The Pensions Regulator
www.thepensionsregulator.gov.uk
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The information contained within this presentation is based on our understanding of present law and HM
Revenue and Customs practice, which may be subject to change. The value of any tax benefits depends on
individual circumstances.
This presentation is directed at professional advisers only. It should not be distributed to or relied upon by
private investors.
A recommendation to invest should not be made on the basis of this presentation alone.
The value of an investment can fall as well as rise. If investments are encashed in the early years the
investor may get back less than the amount originally invested.
Argentis Financial Management is authorised and regulated by the Financial Conduct Authority. The
Financial Conduct Authority does not regulate tax and trust advice.
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