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Can you afford the increased Auto-Enrolment payments?

Can you afford the increased Auto-Enrolment payments?

On 6th April 2019 your business and your employees must pay more into the auto-enrolment pension scheme operated by your business. Your business must increase minimum pension payments from 2% of qualifying earnings to 3%; plus, your employees must increase their minimum payments from 3% to 5%. Those increases represent yet another blow to profitability and to take-home pay.

Can your business afford to pay those increased contributions?

At ad+ Chartered Accountants we see that profit margins have been squeezed by several factors during the past few years. In some cases, businesses are trading close to break-even. We are also aware that many employees are experiencing a similar squeeze on household budgets.

Add to the turnover-less-expenses mix, the uncertainty caused by Brexit, and many business owners are in need of cash-flow advice. A quick review by an experienced accountant will indicate whether your business needs a thorough analysis and detailed one-on-one advice.

Get in touch with David Charles to arrange your initial discussion with one of our Chartered Accountants.

E:  dcharles@adplus.co.uk

T:  0141 643 9200

 

Notes.

A good source of information about auto-enrolment is the Government web site:

https://www.gov.uk/employment/automatic-enrolment-in-workplace-pensions

ad+ has discussed this topic in previous Blog posts, and may find these of interest as background reading:

A Guide to Auto Enrolment

Sacrifice for the greater good

Pension Fund Auto Enrolment

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