New businesses offered workplace pension lifeline

The Government has announced that new businesses will be offered a reprieve of up to three months before they must enrol employees onto a workplace pension.

This change will affect businesses entering the market for the first time, similar to the amnesty already afforded to established businesses.

The government said, without such reprieve, employers would have “near instantaneous auto-enrolment (AE) duties apply to them”.

Employers were “likely to benefit most from the ability to have more time to deal with the official administrative requirements around automatically enrolling a new worker”, it said.

The Government also announced new rules which stipulate when an employee should be enrolled.

Under the old rules, an employee’s “trigger date” began on the day on which PAYE income was first payable.

But now, businesses have to comply with auto-enrolment legislation from the date the first worker begins to be employed by the company.

Adrian Boulding, director of policy at pension scheme provider Now: Pensions, said: “Today the government has issued a rather dry notice that tidies up some auto enrolment legislation, including confirmation that new employers setting up in 2017 will be able to postpone new workers joining the pension scheme for three months, as is current standard practice.”

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