When Does The Automatic Enrolment Law Come Into Action?

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The UK Automatic Enrolment Retirement Plan

In 2008, the UK initiated legislation that make possible an automatic enrolment retirement and pension programs for all eligible employees. Under the Pension Act of 2008, all employers are required to implement the scheme so that eligible employees will have sufficient money set aside to assist them when they retire.

 

It was determined that the population as a whole was not taking their retirement needs seriously enough to have adequate funds available when they retire. Given the fact that most people do live until retirement time, and the are tending to live much longer too.

 

No matter how large or how small, if a business employs anyone whether it is just one employee or thousands, they are required to participate in this act. The total required contribution is a minimum of 2% of wages in which the employer must contribute a minimum of at lease 1%.

 

The automatic enrolment factor makes the process more likely to create the desired results, as people are forced by the legislation to at least do something for themselves in this endeavor. The response from the public has been very favorable, especially from employees since the employer is kicking in at least 1% of their wages. Of course, the employer can contribute more than that amount if he or she wishes.

 

Employers were given staging dates starting, starting with April 1, 2012 when the time to start their plans began. This date was for existing employers, and those that are just going into business are given their staging dates accordingly.

 

automatic enrolmentOther duties include an accurate system for keeping records of who is participating among the employees, the percentages of contribution, the amounts contributed and the dates. This is to simply have a record so that if there are any problems or disputes that occur, the record can be referred to.

 

Employers are given PAYE reference numbers for the purpose of identification and ongoing ease of compliance. If an employer does not comply or does not participate in the plan, there are fines and penalties to ensure that it is done, and if that becomes an ongoing problem, the a court date is the answer.

 

The vast number of employers do want to do the right thing, and in most cases where there is no participation it is simply a matter of misunderstanding. The objective is to help employers work things out if they do not quite “get it” and to provide any assistance that is needed.

 

There is ample information of the government website along with a step-by-step walk through from beginning to end. This is a very well defined guide that anyone can follow in order to set up their scheme and come into compliance with the Act.

 

It is a comforting feeling for employees in knowing that there is a plan in place for them to systematically set aside money for their later years. Employees have a real advantage in the matter too, since there is employer money going into their account, it is especially attractive.

 

How To Fund Your Business Idea

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One of the first challenges you will have to face when launching a business is funding your business idea. The amount you need depends on the project you want to launch, but it is usually impossible to launch a business without having access to any funds.

Start by creating a detailed business plan with FIRSTavenue Partners and determine how much money you will need to fund your business idea. You need to know exactly how much you need and how the money will be used. You should run different scenarios to determine how you will generate money, especially if you think that borrowing money is your best option.

Finding investors for your business idea can be a good way to get started. Your friends and relatives might want to invest in your business, but you should attend local business networking events to find other investors. Finding investors will be easier if you can offer something in return, such as a partnership.

Using your own savings is another option you should consider. Look for another source of income or for ways to save on your different expenses so you can put some money aside. You can use your own savings to fund at least a part of your project and taking some time to save up money will give you more time to improve your business plan.funding-your-business-idea

Applying for a business loan is probably the most common way to fund a business project. You should contact different local banks to find out about the business loan programs they participate in. Small business owners can usually apply for loans with low fees and interests. The downside of financing your project with a loan is that you will need to generate a profit right away to keep up with the loan payments. You might also have to use an asset as collateral for your loan or find someone who can co-sign the loan.

Crowdfunding is another option you should consider, especially if you plan on selling a product. There are several websites where startups can raise money by pre-selling their product. This is a good way to fund your business if you have an innovative product that is likely to generate an online buzz and can offer something original and valuable to the people who participate in your crowdfunding campaign.

Consider your different options and figure out how much money you need to launch your business. You should consider using more than one option to raise the capital you need.