Auto-enrolment: what you need to know
All you need to know about workplace pensions
Auto-enrolment requires employers to automatically enrol eligible employees into a workplace pension. The rules apply to all employers, including limited companies with a single director.
Director-only companies
A company where the sole director has no employment contract and there are no other employees is generally exempt from the main auto-enrolment duties. However, you must still submit a Declaration of Compliance to The Pensions Regulator. We submit this on your behalf as part of our Standard or Scale plan.
When you hire your first employee
As soon as you employ a non-director worker earning above £10,000 per year, auto-enrolment obligations begin immediately. You must enrol them in a qualifying pension scheme, make minimum contributions (3% employer, 5% employee on qualifying earnings), and write to them confirming enrolment. Tell us before hiring so we have the pension scheme in place before their first pay date.
Minimum contributions for 2026/27
- Employer minimum: 3% of qualifying earnings
- Employee minimum: 5% of qualifying earnings (including tax relief)
- Total minimum: 8% of qualifying earnings
💡 Good to know: Employer pension contributions paid through the company are a fully deductible business expense for Corporation Tax. They are also one of the most tax-efficient ways to extract value from the company. Contact us when considering pension planning as part of your remuneration strategy.
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