Government reviews automatic enrolment triggers

The government will review the current link between the auto enrolment trigger and the income tax threshold.

The current threshold stands at £10,000 with this due to increase to £10,500 from next year.

However, the Department for Work and Pensions consultation published today has identified a further three alternatives for 2015/16.

The options under consideration are:

• Increasing the trigger to £10,500, in line with the income tax threshold (the current practice)
• Freezing the earnings trigger at the current level of £10,000
• Raising the trigger by CPI or earnings indexation
• Using the Pensions Commission benchmark replacement rate to determine the trigger

Auto enrolment was introduced in 2012, with the largest companies staging first. As more and more companies at the lower end of the employee scale begin enrolling their workforce, businesses will be watching this review closely. The impact of these changes will affect the number of employees enrolling and possibly the choice of solution they are considering.

With the huge complexities involved in auto enrolment, preparing your business early is essential as well as enjoying a solution that has the flexibility to keep up to date with any changes that are introduced once you’ve staged.

IRIS has now helped over 1500 companies to assess over 400,000 employees using the IRIS AE Suite™. This complete solution makes auto enrolment easy by assessing eligible employees and sending the right communications at the right time whilst linking your P60s and payslip distribution as well!

To learn more about IRIS, auto enrolment and the IRIS AE Suite™ click here

See the IRIS AE Suite™

Visit the automatic enrolment insight page

This concern is something that IRIS shares and we are helping accountants and businesses every day understand sufficiently the existence or implications of workplace pensions. 
The campaign also raises concerns over the volume of businesses needing to deal with automatic enrolment. IRIS is well equipped with scalable automatic enrolment solutions but good quality and appropriate advice is likely to come at a premium as the volume of businesses staging increases. 
The ‘No-one gets left behind’ campaign highlights the eight things you need to know to be ready for auto enrolment including communications, data management skills, scheme selection and sheer manpower required
The campaign also raises concerns over the volume of businesses needing to deal with automatic enrolment. IRIS is well equipped with scalable automatic enrolment solutions but good quality and appropriate advice is likely to come at a premium as the volume of businesses staging increases. 
To find out how IRIS are helping businesses and accountants stage visit iris.co.uk/aeinsightIRIS are proud to be supporting the ‘No-one gets left behind’ campaign launched by Accounting Web. The campaign has been launched to alert as many accountants as possible to the obligations implied by automatic enrolment.