Now listen up, if you're setting up a new business, there are a ton of things you need to think about

And one of the most important is getting your pension scheme sorted. But there are some common mistakes we see businesses make time and time again. So let’s walk you through them, and show you how to avoid them.

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1. Not having a pension scheme at all

First up, the biggie – not having a pension scheme at all. Now we know it might seem like a hassle, but the law is clear. It’s a legal requirement to set up a workplace pension even if you have just one eligible employee. It’s called auto enrolment, and it was brought in to make sure more people are saving for their retirement.

2. Not enrolling the right people

Next, not enrolling the right people. You need to check which of your workers qualify. They need to be aged between 22 and State Pension age, and earning more than £10,000 a year.

Even if they don’t qualify straight away, you need to keep checking, as the rules may change.

Look, we know pensions can be a real headache

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3. Not paying the correct amount of money

If your employee contributes, you’ll need to contribute at least 3% of their qualifying earnings (though you can contribute more). If you contribute 3%, your employee will need to contribute 5% (or more, if they want). Remember – this also applies for any other employee who earns at least £6,240 and hasn’t been automatically enrolled but has chosen to join your scheme.

4. Not telling your workers what their rights are within the required timescales

You also need to tell your workers about their rights within required timescales. They have the right to opt-out if they want to. And if they earn less than £10,000, they can ask to join, and you have to put them in.

5. Missing deadlines for paying money in

Don’t forget the deadlines for paying the money into the pension scheme either.

To keep everything above board and legal, pay your workplace pension provider by the 22nd of the month following pay day. If you miss this, your provider has to report this to The Pension Regulator.

6. Not telling The Pensions Regulator you’ve done your auto enrolment duty

Even if you think you’re doing everything right, make sure you tell The Pensions Regulator that you’ve set up your scheme. This is called a ‘declaration of compliance’, and you have to do it within 5 months of employing anyone.

Now we know it might seem like just another bit of paperwork, but trust us, you do not want to skip this last step. If you don’t submit your declaration of compliance on time, you could be hit with a fine from the Regulator. And that’s the last thing your new business needs.

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Learn why workplace pensions are important for your business

Pension basics for new business owners

Finding staff, checking they can work at your business, paying them, taxes, insurance - the list goes on.

Read on to learn more about pension basics, so you aren't in breach of the law for not having a workplace pension sorted when you should.

Payroll explained - what is it and why does it matter?

Love your business but don’t even know where to start with payroll? No worries, we've got your back.

Read on to find out the simplest ways to set up and manage your business' payroll.

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