Workplace Pensions and How Small Businesses Can Adapt

Sep 19, 2014

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Workplace Pensions and How Small Businesses Can Adapt

Posted in : Business Advice, Financial Services on by : admin

Workplace pensions are set to come into place pretty soon, although the full cost of the scheme won’t come into effect until October 2018. The period before the time that they first come into effect, as well as before full start in October 2018, need to be used to readjust your business so that it is better able to afford the change in costs.

Businesses only have to deal with this if they employ people over the age of 22, and pay them above £10,000, and even in those situations, you won’t have to start doing it at the same time as bigger businesses if you employ a smaller number of staff. You can find your own staging date by using your PAYE reference number.

Thankfully, the cost of these policies aren’t actually that high: Until 2017 you only have to pay 1% of the employees yearly wage, where you then begin to pay 2%, until October 2018, where you will have to pay 3%.

This cost itself is relatively small, so the biggest problem for most small businesses will be the task of organising the schemes, something which they have very little experience in. You can find out more through some research, or by hiring a financial advisor.