Auto Enrolment for a new business

The 7 Steps to Auto Enrolment for a new business

Any new business from 1^st October will not have a staging date – instead they will have an Auto Enrolment Duties Start Date.

As soon as a new business employs their first worker they will have to comply with their auto enrolment duties and follow the auto enrolment rules immediately. There are certain steps new employers must take:

• Register for PAYE with HM Revenue and Customs (HMRC)

You should register as an employer with HMRC as soon as you start employing staff.  You must register before the first payday.  You can register up to 2 months before your first payday, presently PAYE registration can take up to 2 weeks.  Most new business can register online:  Register as a employer

Alternatively get in touch and we can do this for you.

• Setup an Auto Enrolment compliant Pension Scheme

You will need to choose a pension scheme provider that is suitable for you and your staff. There are a number of things to consider when choosing a scheme, as well as the costs and charges involved and if the scheme is compatible with your payroll software.  The Pensions Regulator (TPR) has more information on this area: what to consider when choosing a scheme

• Assess your workforce

You must carry out a formal assessment of all staff to ensure that they are in the correct category for Auto Enrolment.  This will ensure that employees receive the right communication at the right time, as well as the correct pension contribution amount being deducted from all eligible employees.  This task is carried out from your auto enrolment duties start date and is on-going each time you process your payroll.

• Issue Auto Enrolment communications to all staff

Employers must inform all employees individually in writing (email is acceptable) about:

• the pension scheme they have been enrolled into and details on how they can opt out of the scheme if they wish to do so
• how to opt into the pension scheme as they have not been automatically enrolled

• Automatically enrol all ‘Eligible jobholders’ into your pension scheme

Employers will need to follow the correct process to ensure that their eligible jobholders become members of the pension scheme, as well as supply their chosen pension scheme provider with information about their eligible jobholders.

• Register with The Pensions Regulator (TPR)

This will be done automatically after you have registered as an employer with HMRC.  Once your PAYE registration has been processed TPR will contact new employers with their ‘letter code’.  The Letter Code is the 10 digit code provided to all employers from TPR to enable them to comply with their employer duties and complete the declaration of compliance.

At Johnston Smillie we have a dedicated payroll team who can assist your business in all aspects of Auto Enrolment.  If you would like to find out more about our payroll services and how we can help you with your auto enrolment duties, please contact Julie Hunter 

auto enrolment – next steps

Consider casual workers for auto enrolment