Come April - Pension Contributions are Increasing

Automatic enrolment was first launched back in 2012 and since October 2017 its the law for every UK business with employees. 

April will bring the first big change to automatic enrolment since October, with the amounts that you and your employees contribute going up. Currently most businesses are paying 1% of monthly earnings between £490 and £3,750 into a pension scheme, and their employees are paying 2%.  This is set to increase, with employers paying a minimum of 2% and employees paying 3%. This will increase again from April 2019. 

What this means for you as a business is an increase to your payroll bill each month, which can end up being a big problem for cash flow if you haven't planned ahead. 

We can help you forecast the costs of this increase, or help you get your head round the world of pensions if its all still making no sense.