Auto-Enrolment Pensions: What Coventry Accountants Say Employers Must Do
If you employ even one person, workplace pension rules apply to you. Auto-enrolment is one of the most common compliance traps for small businesses, and The Pensions Regulator does not accept "I didn't know" as an excuse. That is why so many business owners turn to Coventry accountants for help. This guide explains what employers need to do, what it costs, and how to avoid penalties.
What Is Auto-Enrolment?
Auto-enrolment requires employers to automatically place eligible staff into a workplace pension scheme and contribute to it. Employees can opt out, but you must enrol them first. It applies to every UK employer, whatever the size of the business.
Workers are split into categories depending on their age and earnings. The group that matters most is "eligible jobholders": employees aged 22 up to State Pension age who earn above £10,000 a year. Anyone in this group must be enrolled. Other workers may have the right to ask to join, and you may have to contribute for them too.
Minimum Contributions for 2026/27
The minimum total contribution is 8% of qualifying earnings, made up of 5% from the employee and 3% from the employer. For 2026/27, qualifying earnings sit between £6,240 and £50,270 a year, and the £10,000 earnings trigger is unchanged.
Many employers get caught out here. A common error is calculating on basic pay rather than qualifying earnings, which should include overtime, bonuses and commission. A good accountant Coventry businesses rely on will set up your payroll to calculate this correctly from day one.
Your Key Employer Duties
Auto-enrolment is not a one-off task. These are the duties a coventry accountant will typically help you manage:
Choose a qualifying pension scheme. Popular providers include NEST, The People's Pension and NOW: Pensions, as well as insurance company schemes.
Assess your workforce. Check each employee's age and earnings every pay period to see who must be enrolled, particularly part-time and variable-hours staff who may cross the earnings trigger later.
Enrol eligible staff and deduct contributions. Contributions must be taken through payroll and paid to the pension provider on time.
Write to your employees. Formal written pension information must reach workers within six weeks of their becoming eligible.
Declare your compliance. You must submit a declaration of compliance to The Pensions Regulator within five calendar months of your duties start date.
Re-enrol every three years. Staff who opted out must be put back into the scheme, and you must re-declare compliance each time.
Keep records. Maintain details of enrolment, opt-outs and contributions.
Employers can also postpone assessing new starters for up to three months, which can be useful for managing temporary staff.
The Cost of Getting It Wrong
The Pensions Regulator can issue compliance notices and a £400 fixed penalty notice, followed by escalating daily penalties from £50 to £10,000 depending on the size of the employer. Late or missing contributions can also lead to enforcement action. For a small Coventry business, that is a significant and entirely avoidable cost.
Why Use Accountants in Coventry for Auto-Enrolment?
Handling auto-enrolment yourself means monitoring every employee, every pay period. Specialist accountants in Coventry take that burden away. They can:
Select a suitable scheme and set up your payroll software correctly
Calculate contributions on the right earnings basis
Track staff who cross the earnings trigger or turn 22
File your declaration of compliance and re-declaration on time
Advise on salary sacrifice arrangements, which may reduce National Insurance costs for both employer and employee
Keep your pension and payroll records consistent for HMRC
Working with local accountants Coventry employers already trust also means you have someone who understands the practical realities of running a business in the area, from restaurants and retailers to manufacturers and care providers.
Practical Tips for Employers
Add your re-enrolment date to your calendar well in advance.
Review your workforce whenever someone is hired, changes hours or has a birthday that takes them to 22.
Check pension contributions are being paid over by the deadline set by your provider.
Review thresholds each April, as the government can change the figures.
Get Expert Help with Your Pension Duties
Auto-enrolment does not need to be stressful. With the right payroll set-up and a proactive adviser, it becomes a routine part of running your business.
At Cheylesmore Chartered Accountants, our Coventry team handles payroll, pensions and compliance so you can focus on running your business. If you'd like support with auto-enrolment, book a free consultation and we'll make sure you stay on the right side of The Pensions Regulator.
