Workplace pensions

As an employer, you are required to ensure both you and your employees are making the correct workplace pension contributions into a qualifying scheme.

The minimum amount of workplace contributions is 8 per cent; of which a minimum of 3 per cent must come from the employer, with a minimum of 5 per cent from the employee.

You also need to provide certain statutory information to your employees, in writing, regarding their automatic enrolment.

There are limits to the amount which can be held in a pension fund and the amount that can be paid in each year without certain tax charges being imposed by HMRC.

You must keep information and records of the contributions you pay to your pension scheme for six years (in most cases). This will help you ensure the correct contributions are paid and provide evidence if there’s a dispute.

Re-enrolment and re-declaration must be completed every three years. You must re-enrol staff who left your workplace pension scheme, or reduced their contributions, back into the scheme and complete a re-declaration of compliance.

The declaration must be completed within five calendar months of the third anniversary of your staging date.

There are strict penalties for failing to follow workplace pension rules, with the Pensions Regulator having the power to issue escalating penalty notices of up to £10,000 a day.