Can't understand why I've been auto enrolled

sparky0138

I got a letter today to say that I have recently "met the criteria" of earning over £9,400 so I've been auto-enrolled but I only earn just over half that.

When I e-mailed them to enquire they said I'd done enough overtime to trigger it but I found a website that says you have to earn over £787 per month but the most I've earned in the past 12 months is £554.

I took the letter into work today and they're looking into it because they can't understand it either. Any ideas?

Drp8713

You may be an entitled worker?


Either way, why are you not already in the scheme?


Even if you and your employer and only paying 1% each you are still doubling your money instantly. Plus tax relief too.


Free money is free money.

sparky0138

But even as an entitled worker (which I don't think I am because I haven't made a request to join - if that's how it works) my employer is not required to pay any contributions on my behalf. I also don't pay tax so no tax relief.

GeraldineA

Even if you don't pay tax, the government will be contributing the equivalent of 20% tax to your pension contributions. So if you put in £40 and your employer puts in the same, then you will end up with £100 in your pension pot.

Old_Slaphead

GeraldineA wrote: »

Even if you don't pay tax, the government will be contributing the equivalent of 20% tax to your pension contributions. So if you put in £40 and your employer puts in the same, then you will end up with £100 in your pension pot.

Being pedantic, if you put in £40 and employer does the same then you will end up with £90 in fund - tax is only added on employee bit.

elantan

If it's anything like mine my 1% is £8 a month not £40 my employer puts in the same ( ok my £8 includes the tax relief ...I put in slightly less)

If you earn £500 odd a months that's £5 from your employer and £5 including tax relief from you

Just think ... That whole £10 won't be enough to buy you a tin of beans a month when you retire ... But I'm sure it will be enough to just tip you over the edge for any benefits

Don't rely on it being enough to retire on, you need to do more or your going to struggle ... This is where I am and I'm working my backside off to try and get some sort of savings for retirement don't leave it too late

ableandy

Under Auto Enrolment rules you don't get tax relief if you don't pay tax so the Government won't be putting anything into your fund I am afraid.

sparky0138

Sorry, forgot to post an update. Even though I was told it must have been triggered due to overtime I took it further. It was passed on to several people to look into and eventually I was told they could see no reason as to why it was generated as I hadn't earned over the threshold to meet the criteria. I just hope they don't keep auto enrolling me every three years now.

RickyC_IFSWP

ableandy wrote: »

Under Auto Enrolment rules you don't get tax relief if you don't pay tax so the Government won't be putting anything into your fund I am afraid.

I've never read anything about auto enrolment having no tax relief. The tax relief system is the same as for personal pensions.

Well at least OP found out that he was auto enrolled in error.

Your_Hero

RickyC_IFSWP wrote: »

I've never read anything about auto enrolment having no tax relief. The tax relief system is the same as for personal pensions.

Well at least OP found out that he was auto enrolled in error.

This is also news to me. Please feel free to share where you got this information from ableandy.

dunstonh

Auto enrolment tax relief is different to personal pensions. For many it will be similar as their scheme will exceed the auto enrolment minimums (such as a group personal pension which is not based on band earnings or amounts contributed). However, at its minimum level, it is not the same.