We can be your auto enrolment solution

As you may be aware, the government has introduced auto enrolment pensions legislation that means that all employers, regardless of size, have to automatically enrol all their qualifying employees into a suitable pension scheme and make contributions to it from a certain date.

Transfer to us today, and we will set up your auto enrolment scheme for no fee*.   That's right, no set up fee and with charges for payroll processing starting from £3.95 per payslip.

Let us be your nominated advisor, and we will manage the entire process for you.

*From 18 January 2016, the AE providers will charge £20 per month for each employer joining the scheme.


We have researched the market to evaluate the options available to you to help our clients comply with the legislation as part of our service to you. Following this review, our recommendation to you is to use the auto enrolment services provided by our selected auto enrolment provider and unless you object we intend to add this service to your payroll, if we provide you with payroll services.

Our payroll software is all fully compliant and we are already running auto enrolment services for our clients.

Auto enrolment contribution ratesAuto enrloment solution

The employer and employee must normally make contributions, and there is a minimum employer contribution and a minimum total contribution as detailed below.  The employer could pay more and the employee less, as long as the overall minimum is achieved.

Please note how the employers contribution rate increases, and employers may wish to factor this into the way that overall pay for employees is structured.  Employees will be informed of their auto enrolment contribution rates automatically, but these will be potentially significant come October 2018.

Staging date Employers minimum Total minimum
Staging date until 30 September 2017 1% 2%
1 October 2017 to 30 September 2018 2% 5%
1 October 2018 onwards 3% 8%

These are minimum figures, and single-director companies may want to consider making their own pension arrangements.  For instance, a director may wish to set up an auto enrolment scheme where by October 2018 the company pays 10% of the qualifying salary into a pension.  This may affect your personal pay strategy.

Tax savings

The pension contributions are deducted from the gross salary before tax and NI is calculated.

The following tax savings arise:

  • The employee will pay less tax and less NIC
  • The employer will pay less NIC

Benefits of the recommended auto enrolment service

  • No licence fees or other system charges to you
  • All the copious legally mandated correspondence undertaken by the solution provider
  • No complicated decisions about how to comply – the scheme is designed using the options that are usually most appropriate for employers with staging dates in 2015 and beyond
  • Integrated HMRC-approved master trust pension investing in Scottish Widows funds
  • Removes the risk of fines for non-compliance
  • Ability to pay above-minimum contributions if you wish
  • Employee helpdesk to handle any of your employees’ queries

We believe that our chosen auto enrolment solution is the simplest, most cost-effective way for you to comply with the auto enrolment legislation. Payroll clients will receive a brochure outlining the chosen auto enrolment solution and pension scheme details.

Unless you object, we propose to add this service to our existing payroll services to you and simply ask that you complete the authorisation process and the direct debit mandate to pay your pension contributions when requested to do so by our auto enrolment solution provider.  You will be contacted automatically so if you are happy to use their services you need do nothing further to comply – it will all be taken care of for you.

If you intend to use an alternative auto enrolment service or solution please contact me to discuss your preference and to let me know who your chosen provider will be.

If you are a sole trader with no employees or director of a business with no employees, you have no auto enrolment duties but must inform The Pensions Regulator. You can still use our chosen auto enrolment solution if you would like to set up a pension. If your business later takes on an employee you will also need to inform The Pensions Regulator as you will then have auto enrolment responsibilities. If you do not have auto enrolment responsibilities but would like to take this opportunity to set up a pension scheme, you can contact our chosen auto enrolment provider directly.

If you have any questions or comments, please do not hesitate to contact Sue.


Contact us today

Trinity House, 31 Lynedoch Street, Glasgow G3 6EF

71 King Street, Kilmarnock KA1 1PT

49/50 Bayhead, Stornoway HS1 2DZ

Phone us on: 0141 237 3878

Email to: wages@payrollscotland.co.uk