Blog Article

Does your pension scheme qualify for automatic enrolment?

By Stephanie Wardle

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By Stephanie Wardle

Author

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Updated 11th January 2023 | 3 min read Published 15th July 2014

One of the biggest obstacles for many businesses is identifying whether your current pension scheme or the one you’re thinking of choosing is actually eligible to use for auto enrolment. Companies mustn’t assume that a pension scheme is compliant.

Ensuring that your company or practice has a qualifying pension scheme is essential. The Pensions Regulator [TPR] has specific criteria that schemes have to match, so whilst your current pension scheme may qualify, you may have to carry out more checks against additional criteria to ensure that you can automatically enrol new members.

The changes brought about by auto enrolment are complex and far ranging. The pension landscape is unlikely to stay the same, especially as smaller businesses begin to stage with the expectation that it will become less commercially viable for many pension companies to stay in the market and the introduction of large joining fees.

The best way to gain a better understanding of how this legislation will change your business is by attending a training course.

IRIS run auto enrolment legislation courses to help familiarise businesses and employers with the changes. Whether you’re an accountant or bureau running payroll for a variety of companies, a payroll professional looking to familiarise yourself with the changes or even if you’re a small business owner where running payroll is just one of a number of your main duties this course is right for you.

If you’re an IRIS customer or using IRIS payroll, there is also payroll specific training to help you familiarise yourself with the complex changes, your key duties as an employer and how this can all be managed with your software.

Contact the IRIS team to find out more or to book your place on a course today.

0843 357 1806

If you provide any taxable benefits to employees then you must submit to HMRC a P11D form (or P9 for employees earning less than £8,500 per year) for each employee receiving benefits. You must also submit one additional form, P11D (b), to declare the overall amount of Class 1A National Insurance contributions (NICs) due on all the expenses and benefits you’ve provided.

Examples of taxable benefits include:

• Private medical insurance

• Company cars

• Gym membership

You must also provide a P11D form to each of your employees which details the benefits they have received over the year and tax due.

Time is of the essence!

The deadline for submissions is 6th July 2014 and payment of Class 1A NICs should reach HMRC by 22nd July. The HMRC will impose fines for late submissions – currently £100 per 50 employees for each month or part month that a return remains outstanding.

Submitting returns

Many companies ignore their P11Ds as they are unsure what to do and how to go about working out the tax that is due for each employee but with the fines mentioned above you could end up with a nasty surprise by not staying on top of this once a year task.

The fastest, easiest and most secure way to submit your returns is electronically. Quality of returns is extremely important to ensure they are not rejected by HMRC. Using a specially designed software such as IRIS P11D Organiser will ensure that the often complex calculations are performed correctly and that the returns contain accurate information so are accepted first time. Things get even easier after year one as benefits can be rolled forward and items inputted throughout the year as necessary (preventing the last minute rush!)

Click here for more information on IRIS P11D Organiser. To arrange a free online demonstration please call the IRIS team on 0344 815 5677.