Northampton: 01604 657200    Daventry: 01327 317300

One-to-one personalised advice you can trust

 

[01.05.2018]

After three years of auto-enrolment, it’s time to take stock

Jeanette White of accountancy firm DNG Dove Naish reminds us that many businesses are facing three-yearly reviews of their auto-enrolment process. It’s time to think seriously again about providers and also re-engage with your staff.

Most businesses have become used to the idea of pension auto-enrolment now. However, it’s important to remember it’s an ongoing process. After three years of operating the scheme, it’s essential that you undertake a review.

We contact our clients around four months prior to the date. Reminding them of the window in which they have to take action. This is the period three months either side of the anniversary of the auto-enrolment process being set up.

There are two issues that you really need to address.

The first is to look at your employees again and decide whether any of their circumstances have changed. People who had previously opted out on financial grounds, for example, may now be in a position to opt in. It’s certainly an opportunity for all your staff to reflect once again on their financial planning and focus on the importance of making provision for their retirement. Our payroll team are able to complete this assessment for you, and support you with the next steps.

If you’re receiving support with payroll and pensions from an external supplier, you can make a judgement of whether the service is good value for money.

The second question is whether you may want to change provider. This seems like a big decision, but it’s an important one. For example, you may consider that the pension scheme is being subjected to a higher management charge than you are comfortable with. Employer contributions are set to increase over time, so everyone is inevitably going to become preoccupied with costs. Your accountant will be able to advise you on the pros and cons of changing pension providers.

While it’s not going to be possible for your accountant to recommend a provider, it’s certainly worth talking through your scheme in general terms and forming an opinion about the correct approach for your particular business.

Outsourced payroll services at DNG

Here at DNG Dove Naish we offer payroll outsourcing services. We have dedicated staff who can relieve you of the payroll burden by providing a comprehensive and confidential payroll service. We will also advise and support you with your business’ auto-enrolment compliance. Contact us to discuss how we can help your business.

Jeanette White

 

 

Leave a comment

 

 

Comments left on this post

 

 

 

Next Previous