According to The Guardian as employer pension contributions are scheduled to rise to 3% by 2018, working out how to use auto-enrolment is a vital tool for small businesses

With there being a large retired population that’s only going to increase, there’s a need for action to ensure a sustainable economic future for the UK. What could be the solution for it? Legislators think it’s auto-enrolment. But what does that mean for small businesses?

Across the world, companies are responsible for providing funds specifically for retirement. In the UK, auto enrolment signals a compulsory starting point for businesses and employees to contribute towards pension funds. It’s a great moment for employees, who’ll benefit in the long run. But for many small business owners, auto enrolment represents another compliance hurdle to clear. And with employer contributions being additional to wages, employers will need to find the extra resources for their payroll. Many people there for seek independent financial advice on what is the best way to do it, we at Hutt Professional have financial advisers who would be able to offer you that independent financial advice.

Its important to know that employer contributions start at 1%, but will rise to 3% by 1 October 2018. Employees will need to make a 1% contribution at first, rising to 5% by 1 October 2018. It’s a big deal for small business, and as we approach the last of the initial staging dates (1 April 2015), many are preparing for immediate upheaval. However, if your business meets certain criteria, you may be jumping the gun by up to two years.This is why you should seek independent financial advice, this way you can have all your questions answered in which will help you then have a better understanding.

If you wish to seek independent advice on how auto-enrolment will affect your small business or you are unsure about what it means and how its going to affect all your individual employees , we at Hutt Professional have financial advisers with years of experience who would be happy to offer you independent financial advice.

 

source: http://www.theguardian.com/small-business-network/xero-partner-zone/2015/mar/11/pension-auto-enrolment-guide-small-businesses  12/03/2015