MSE News: Automatic pension enrolment - what it means for you

Eellogofusciouhipoppokunu

thriftymanc wrote: »

Aren't they supposed to let you know before they enrol you so that you have the chance to opt out?

I looked at the timetable based on the size of the business.

You are not allowed to opt out until at least 1 pension payment has been made. Then you can opt out and the company refunds you the money. Crazy.

Trevor_Durham

thriftymanc wrote: »

Aren't they supposed to let you know before they enrol you so that you have the chance to opt out?

I looked at the timetable based on the size of the business.

Yes, the employer is required to notify all staff who are about to be auto enrolled (and also those who are not about to be auto enrolled but may choose to join) that they have a pension scheme and what is about to happen.

The mechanism for opting out will be equivalent to the 'cooling off' period that already exists for most financial products in the UK.

Debt_Free_Chick

thriftymanc wrote: »

Aren't they supposed to let you know before they enrol you so that you have the chance to opt out?

You can't opt out beforehand. The process is

Employer assesses you (via Payroll records)

Employer sends you confirmation that you are being put in the pension scheme

You go in the pension scheme and the first contributions - employee and employer - are paid

You can then opt-out
If you do so, that first contribution is repaid to you via your next payslip

So - no - sorry. You can't opt "not to be auto-enrolled". You have to be enrolled first and then opt-out

tunnel

Is the employers contribution tax deductable for their company?. I ask as i'm an employee of my own ltd company. What this is saying is In effect i would pay in to a pension and then, as my own employer be forced to contribute,can i claim the contribution back through my accounts?

dunstonh

tunnel wrote: »

Is the employers contribution tax deductable for their company?. I ask as i'm an employee of my own ltd company. What this is saying is In effect i would pay in to a pension and then, as my own employer be forced to contribute,can i claim the contribution back through my accounts?

No rule changes there. Same as it always have been. The "employer" contribution is paid gross and reduces corporation tax with no NI to pay on it.

tunnel

No rule changes there. Same as it always have been. The "employer"
contribution is paid gross and reduces corporation tax with no NI to pay on
it.

Thanks Dunstonh,

Its now a toss up whether to draw it out as divi's or to actually look at a pension,something i've never considered as i've several BTL investments and have never felt the need.

Tunnel

scooby75

What it means for you:

You will pay into a fund run by the private sector and most of your payments will be eaten up by their administration charges.

And the government endorses this.

Eellogofusciouhipoppokunu

scooby75 wrote: »

What it means for you:

You will pay into a fund run by the private sector and most of your payments will be eaten up by their administration charges.

And the government endorses this.

What's the alternative?

lemontart

I have not had any communication from my employer about this scheme at all , then again they struggle to get my wages right in the first place so perhaps a good thing as they are bound to mess it up....... rant aside when should this actually start for us what date and how much notice should I get about planned deductions so I can allow for it in my monthly budget

Debt_Free_Chick

lemontart wrote: »

I have not had any communication from my employer about this scheme at all , then again they struggle to get my wages right in the first place so perhaps a good thing as they are bound to mess it up....... rant aside when should this actually start for us what date and how much notice should I get about planned deductions so I can allow for it in my monthly budget

How many employees in the company? The date on which this applies depends on the number of employees