Summary of Threat
All employers to provide a pension scheme to workers earning over £10,000 by February 2018
The initial employers contribution rate will start at 1% and rise to 3% in 2019
Fines for non-compliance will range between £400 and £10,000
Get the right advice & ensure you are protected
Speak To Colette
Specialist Construction Payroll Advisor
THREAT IN DETAIL
Automatic enrolment began in October 2012 and by February 2018 all employers will have to provide a pension scheme to workers earning over £10,000 a year. Both setting up and operating these schemes is time intensive and costly.
The initial employers contribution rate will start at 1%, rising to 3% in 2019, with fines for non-compliance ranging between £400 and £10,000.
What are the less obvious risks?
Contractors that find, according to HMRC that their self-employed tradesman should, in fact, be treated as employees face massive bills for NI plus fines and opportunistic claims for holiday pay. With the new auto-enrolment legislation this too will leave contractors exposed to pension related fines from the regulator, not to mention the increase in payroll costs for pension contributions planned for the future.
The government are expected to follow the model adopted in Australia, where employer pension contributions are currently 5%.
What is the solution?
By appointing EEBS as an intermediary your sub-contractors are engaged directly through us, there is no direct employment relationship between you and your sub-contractors, therefore, removing all of your employment responsibilities, including the need for Pension Auto-Enrolment for these workers, and the associated costs both current, and future.