You may be aware that HMRC has launched free auto enrolment software aimed at helping businesses with fewer than 10 employees to manage their new pension duties.
However, businesses should be aware that this service, known as Basic PAYE Tools (BPT), has severe limitations to its auto enrolment functionality and could make the process of auto enrolment harder for many employers.
For example, BPT will not support multiple payment frequencies or variable contributions levels, it will assume the legal minimum contributions are used and only work on qualifying earnings. It also has no postponement functionality and most importantly, it will not provide the statutory communications required under auto enrolment.
James Alesbury, head of Payroll, says: “Auto enrolment is a significant undertaking for any business and it is important it is done correctly to satisfy the demands of the regulations.
“The BPT will be far from ideal for many businesses and could potentially make the auto enrolment journey a lot more difficult.”
Having seen the majority of our payroll clients through the transition of setting up auto enrolment already, we are well versed in the potential obstacles and various options that available to the smaller employer.
We have also set up an all-encompassing solution with Legal & General where our payroll team can act as the administration hub for your business, arranging the set-up of the pension scheme and maintaining ongoing compliance, including the necessary assessments, record-keeping, employee notices and uploading of the pension data.
For further information on Auto Enrolment, please contact James Alesbury on 023 8646 1222.