Existing businesses that previously had no employees are also affected
From October, new employers, which will include all new limited companies, will have instant pension duties and obligations. These businesses will need to put pension plans in place. Advisers should update new company checklists for the requirements and consider using the new online suite of information and tools made available by The Pensions Regulator.
The extension also includes companies that take on an employee where previously the directors have not been classified as workers and the company has been exempt from duties under automatic enrolment. There is a risk that these businesses may inadvertently miss this obligation.
The Pensions Regulator has said: ‘If you are employing staff for the first time after 1 October 2017, your legal duties for automatic enrolment begin on the day your first member of staff starts work. You should start preparing early for this to work out what you’ll need to do.
It is important to remember that even those businesses with no employees in a pension scheme will still have a legal requirement to complete a declaration of compliance online within five months of their duties’ start date.
The Regulator is hosting a free webinar for business advisers at 2.30 pm on 6 July. The webinar will focus on the legislation changes that come into effect during 2017/18, and include the duties that new employers have from 1 October 2017. You’ll also have a chance to get your automatic enrolment questions answered live on the day. Register for the webinar now.