Accounting in London: Why Do I Need The UK Auto Enrolment Pension

Royds Accountancy

Accountants in Eltham
43 Lovelace Green,
Eltham, London,
SE9 1LG
UK
Phone: 020 3488 0529

 

 

In 2008 in the UK the law concerning workplace pensions was altered and the Pensions Act of 2008 came into being. This started the UK Auto Enrolment Pension Scheme which all employers must become compliant.

Every employer in the UK, regardless of their size must participate in the scheme as the law requires. Even if you are a hairdresser, a butcher, a draftsman or a barber, if you even employ only one person, you must comply with the law.

It is now required that all employers must contribute to the pension scheme called the automatic enrollment scheme, and the employees will also contribute. The UK auto enrollment pension arrangement calls for a minimum payment of 2% of wages, with the employer contributing at least 1% of that amount.

It is important that the employer understand the law, what the duties of the employer are, and that he or she be compliant in regard to all the duties that are involved in the operation of the plan. It is also a good choice to find an accountant in London who can inform you of the auto enrolment effects and also give you advice on saving and financing.

Each employer has a staging date, which originally was April 1 of 2012 for the then current employers. If an employer is a new employer, then a staging date will be assigned along with a PAYE reference number, which will be used by the employer for identification purposes in the plan.

If the employer uses an automatic pay system to pay employees, the money that is withheld from the employee’s pay will be due on the 22nd of the following month, or if payment is to be made by cheque, it will be due on the 19th of the following month.

accountant in London

The purpose of the UK auto enrolment pension system is to help employees plan ahead for their retirement future. It was discerned that not enough people were really planning ahead and preparing for the inevitable time when they would have to stop working. That being the case, it was also evident that people on the whole would not have enough set aside for that moment.

Thus the action for this legislative effort to have society in general use the mechanism of an employer-based system to accomplish the task. In all, the response from both employers and employees has been positive. It is good incentive for employees, because part of the money that is set aside is going to come from their employer, which gives them quite a nice return on their money.

If an employer, for some reason, does not comply with the act, he or she can be subject to fines, penalties and ultimate court action, if it gets serious enough. Employers on the whole do wish to comply, and it is usually out of misunderstanding and confusion that there is ever a problem.

There is ample guidance that is given from the online website from the government on all of the required procedures, as well as a way to contact someone if you need assistance or have questions.

All of the necessary information is very straight-forward, which makes it easier to comply and be sure that the plan is established properly.

 

Hiring Professional Bookkeeping Services

C&C Accountancy and Taxation Services
Accountants in Essex
88 North Street,
Hornchurch, Essex
RM11 1SR
UK
Phone: 01708 471442

 

Bookkeeping is something that is a necessary element for running any small business. However, there are a great many owners that dread the idea of taking time out of their schedule to tackle their bookkeeping operations, or pulling a staff member in to take care of it. This is why it is a good idea to look into your options in professional bookkeeping services that you can hire to take on the tasks for you.

Free Up Time

If you are able to outsource the bookkeeping for your business, you will have a lot more time that you can use for running your business. This is a process that takes time if it is to be done right, so hiring a professional service will free up time and keep you from having to worry about tackling your bookkeeping on your own.

Save Money

When you hire a professional bookkeeping service, you will have the ability to save money because you are only paying for what services you need. You will not have to pay any sort of salary or offer benefits for employees that you need to hire for bookkeeping. Someone who is offsite will have a better chance at focusing on your business, free from any distractions that a normal office setting may pose.

bookkeeping

High Quality Work

Hiring the professionals will offer you access to some of the best bookkeeping tools that are available today. Such tools will follow along with all of the most recent regulations and laws, keeping complete records and even backing up data on a frequent basis so that your records are both precise and always available when you need them.

Scalability Freedom

Outsourcing your bookkeeping will give you a team that will help to advise you on all of the various options to meet whatever goals that you may have. Whether you are looking to cut back on spending or expand your business, the professionals in the world of bookkeeping can be a true asset.

No matter what kind of small business you have, there are a number of incredible benefits that come along with hiring professional bookkeeping services to tackle your books and make sure that everything is running smoothly. The end result will be you saving a great deal of time while not having to stress about taking on the bookkeeping tasks on your own for your company. It is all a matter of finding the right bookkeeping professional to take care of your needs.