One of the things to happen when Governments change the rules is the unintended consequences of change, and Pensions – AUTO ENROLMENT is one of these things.
I am sure that when the Blair Government got together to put in place the plans, it did not expect those being cared for to be affected, but they sure are and the fines for breaching the rules are going to be hefty.
In order to see if you are going to be affected there are a couple of things you need to check, if you are affected you need take some action.
This change only applies if you employ your carers directly, under the Direct Payment rules.
If direct payment applies to you then you will fall into the employer rule and you will need to put in place an employers pension scheme under the Auto Enrolment rules and comply in full with the legislation.
What you need to do is check a few things in order to determine the next move.
Part one do you have a carer?
Do you pay them under PAYE or as a Freelance worker?
Freelancer – no action.
PAYE – they are an employee and you have to offer them a pension under Auto Enrolment.
Dependent on their salary from you, there will be an employer pension contribution. Based on the 2015/16 tax year these figures these are below along with the minimum level of employer and employee contributions.
At the moment you have no option but to comply with these rules or face a fine.
I can help you solve this admin problem for a fixed cost which is £180 at the moment, for this amount I will deal with all of your initial setting up and arranging the scheme, and provide a process for you to continue complying.
Please get in touch using the form below and tell me a good time to speak.
For my free online MoneyCourse send me your details below.