Minimum pension contributions will soon be increasing

Posted on 17th August 2017 by Streets What's trending?


Image to represent Minimum pension contributions will soon be increasing

Under the Pensions Act 2008, the minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase as planned.


Does this apply to me?

If you have put your staff into a pension scheme for automatic enrolment you will need to make sure that at least the required minimum amount is paid by you and your staff into the scheme.

When do I need to make the increases?

You must increase the minimum contributions from 6 April 2018 and then again from 6 April 2019. All employers must take action to make sure at least the minimum amounts are being paid into their automatic enrolment pension schemes.

What are the increases?

Date effective Employer minimum contribution Staff contribution Total Minimum contribution
Currently until 5 April 2018 1% 1% 2%
6 April 2018 to 5 April 2019 2% 3% 5%
6 April 2019 onwards 3% 5% 8%

What do I need to do?

From 6 April 2018, the way you calculate and pay contributions into your pension scheme must have been changed to reflect these increases. Your pension provider, and if you use one, your payroll software or payroll provider, may be in touch about these changes before they come into effect. You should also let your staff know about any increases being applied to their contributions.

For all Streets Payroll clients these changes will be made automatically so you do not need to take any further action to implement these increases.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Boost Your Restaurant's Cash Flow with These Top Tips!

Maintaining a healthy cash flow is crucial for the success of any restaurant. Here are five key strategies to get you started: Optimise Menu Prices Ensure your dishes are priced for both competitiveness and profitabilityStreamline InventoryReduce waste and free up cash by using smart inventory management techniquesNegotiate with SuppliersBetter terms ...


Property Finance - unlocking opportunities with confidence and support

Exploring, navigating and understanding the complex landscape of property finance options can not only be time consuming, but hard to understand with the diverse range of financing options that are available in the market. It is essential from the outset for business owners to carefully evaluate their financing and ...


Child Benefit Updates

You may have heard about the recent changes to the High Income Child Benefit Charge which were announced in the Spring Budget. This is something that will affect several of our clients, and the changes can influence whether claims are made for child benefit or whether those that ...


You might also be interested in...