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Hello,

 

With workplace pensions being introduced this month for larger organisations, does anyone know when

Pre-schools have to contribute to these for their staff ?

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Ours is 2016 (6 staff) you can go on the hmrc website and put in your paye ref and it gives your 'staging date'.......anyone with less than 50 employees is between march 2014 and sept 2016 and it's only for employees earning above the personal tax allowance.

Edited by mouse63
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The first site I found said this "Aimed at professional advisers, large employers with in-house pensions expertise and those with a sound knowledge of pensions, our guidance provides detailed help with implementing the new employer duties" so I found another one...

http://www.thepensionsregulator.gov.uk/employers/staging-date-timeline.aspx

Simpler but a tad confusing towards the end unless you know what you're looking for. :D

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I had a long chat on the nest employer helpline to a really helpful chap. It transpires that some of my staff will be inelligible (as earn too little), Some will almost certainly opt out as already close ro retirement age, thus not worth joining, and for the few left, the employer only pays the er contribution on amounts above the threshold ie amounts above £5564. Thus for us this is not going to be anywhere near as expensive as I had anticpated, thank goodness. I have a july 2016 implementation date...for now, I am going to carry on with my head in the sand as 2016 is just too far away to know if we will even still be in business.

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My understanding was also that the threshold was the same amount as a basic rate taxpayers allowance - hence the £8105 figure above - but will be different ( more I assume if the present government carries on with it's increase to £10,000) by the time most of our settings are eligible / required to pay in,

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Just for clarity, let me explain the numbers I gave. Auto enrolement is for those earning at or above £8105. However, those who are not going to be auto enroled are still eligible to elect to join the scheme. For those who elect to join on salaries from £5564, the employer would then still have to make contributions. For those below £5564, the employee can join but there is no obligation for the employer to make contributions. Thus from a budgeting point of you, you should really be prepared for the possibility that all employees earning from £5564 will elect to join and thus budget for your "worst case" scenario.

 

Hope that makes sense.

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