Pension Auto-Enrolment
By law all employers have to provide a pension scheme to workers earning over £10,000
Employers contribution rate is currently at 5% and set to rise
Fines for non-compliance will range between £400 and £10,000
The threat in detail
Automatic enrolment began in October 2012 and by February 2018 all employers had 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 started at 1%, rising to 3% in 2019, and is currently set at 5% with fines for non-compliance ranging between £400 and £10,000.
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.
What is the solution?
Why work with EEBS?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.
By partnering with EEBS, we remove:
All pension auto-enrolment responsibilities and costs
The risk of HMRC reclassifying sub-contractors as employees
Exposure to employment rights claims including holiday pay and unfair dismissal
The administrative burden of CIS compliance
“We are confident that we can rely on EEBS to keep us up to date with any changes and ensure we continue to comply.”
Christine Shearing, Kenwood Groundworks
“We have used EEBS for 7 years now and we cannot fault their service. They keep us up to date with new legislation and regularly carry out compliance reviews. Their staff are friendly and knowledgeable and the processing rates are fair.”
Google Review
“Superb service from EEBS. They handle all our HMRC verification, CIS tax is always calculated correctly, and wages are always paid on time. Couldn’t recommend them highly enough.”
J&J Windows & Doors
“I couldn’t recommend EEBS enough! They are really informative, helpful and understanding. The whole team go above and beyond and they are really approachable and friendly too.”
Katy Jupp-Flower, Trustpilot Review
“I have worked with EEBS for over 3 years now and I cannot recommend them highly enough. Great people, great service, and they really know their stuff when it comes to contractor payroll.”
Stuart Hilton, Trustpilot Review
“Working with EEBS has been an absolute pleasure. Their team is friendly, approachable, and professional, with an exceptional understanding of CIS payroll. Their quick responses to queries and personalised service make the entire process smooth. Outstanding service backed by lovely, highly knowledgeable people.”
Will Nixon, Trustpilot Review
“The company I work for has traded with EEBS for over a decade. All personnel at EEBS are very polite, knowledgeable and very helpful. Great people to deal with who resolve any queries promptly and efficiently. I would recommend them to anybody.”
Maria Torrisi, Trustpilot Review
“Would highly recommend EEBS, we have used a few payroll companies in the past but by far these guys are the best. Always so helpful and very knowledgeable, such a great company to work with.”
Google Review
