Payroll

Auto enrolment services for employers

Every UK employer has workplace pension duties from the day its first member of staff starts work. HCA supports employers with the auto enrolment process alongside payroll, and explains what you must do, by when, and what happens if a step is missed.

Ask about auto enrolment Call 0113 460 1786

When do your auto enrolment duties start?

Your duties start on the day your first member of staff starts work. This is your duties start date, and the deadlines on this page run from it, so keep a note of it.

Within 6 weeks of that date, or of the day a worker first meets the age and earnings tests, you must put eligible staff into a qualifying pension scheme and write to each of them to explain what you have done.

You can postpone assessing a worker for up to 3 months from their start date, if you write to them within 6 weeks to say so. If they ask to join during that time, you must enrol them. Postponement cannot be used at re-enrolment.

Which staff must be put into a pension?

You must automatically enrol staff who:

Workers aged 16 to 74 who are not automatically enrolled can still ask to join. If they earn more than £6,240 a year you must enrol them and pay employer contributions; if they earn less, you must give them access to a scheme but do not have to contribute. Check each new starter, and check again when someone’s pay or age changes.

are aged between 22 and State Pension age
earn at least £10,000 a year (the 2026/27 earnings trigger)
normally work in the UK, including UK-based staff who travel abroad for work

How much do you have to pay in?

The legal minimums for 2026/27 apply to qualifying earnings: the part of a worker’s pay between £6,240 and £50,270 a year.

You can pay more than the minimum, including the whole 8% yourself. Some schemes use a different definition of pay with its own minimums, so check the basis your scheme uses.

Minimum contributions on qualifying earnings for 2026/27
Who pays	Minimum share of qualifying earnings
Employer	3%
Member of staff, including tax relief	5%
Total	8%

Worked example: one employer’s first year (hypothetical)

Bright Bakes Ltd (hypothetical) takes on its first employee, Sam, on 1 May 2026. Sam is 30, normally works in England and earns £24,000 a year, so Sam must be enrolled. The company’s duties start date is 1 May 2026.

Contributions: qualifying earnings are £24,000 less £6,240, which is £17,760. The 8% minimum is £1,420.80 a year: £532.80 from the company (3%) and £888 from Sam (5%). If the scheme uses relief at source, Sam pays £710.40 from take-home pay and the scheme claims £177.60 of basic-rate tax relief from HMRC to make up the £888.

Dates: the company must complete its declaration of compliance by 30 September 2026, 5 months after its duties start date. Its first re-enrolment date is 1 May 2029, the third anniversary, though it can choose any date from 1 February 2029 to 1 August 2029. The re-declaration is due by 30 September 2029 whichever date it picks.

Contributions are worked out each pay period, so the amounts above are for a full year at a steady salary. Thresholds are for 2026/27 and can change for later years.

What is the declaration of compliance?

Within 5 months of your duties start date you must complete a declaration of compliance with The Pensions Regulator (TPR). It tells TPR which scheme you use and how many staff you have enrolled.

You must complete it even if nobody needed enrolling. You can make it yourself or authorise someone to do it, and TPR may fine you if it is late or the information is wrong.

What happens at re-enrolment every 3 years?

Every 3 years you must put back into your scheme certain staff who have left it or opted out, and then complete a re-declaration of compliance. Your re-enrolment date is the third anniversary of your duties start date, though you can pick any date from 3 months before to 3 months after it.

The re-declaration is due within 5 months of that anniversary, whichever date you choose to assess staff, and you must complete it even if nobody needs putting back in. The next cycle then runs from your latest re-enrolment date.

What happens if auto enrolment goes wrong?

TPR usually starts with a compliance notice or an unpaid contributions notice that sets a deadline. If that deadline is missed, or there is evidence of other breaches, TPR can issue a fixed penalty of £400.

If the problem continues, an escalating penalty notice sets a new deadline, after which TPR charges a daily fine of £50 to £10,000, depending on how many staff you have, until you comply. Contributions you should have paid still have to be paid.

You must not encourage staff to opt out, or ask job applicants whether they would. Staff who opt out within a month of being enrolled get a refund of their contributions; staff who leave later stop paying in but keep what is in their pension.

How can HCA help with auto enrolment?

We support employers across the UK from Park House in Leeds, with auto enrolment coordinated alongside your payroll so pension deductions match each payslip.

Taking on your first employee? Read Hiring your first employee: what comes before payday?.

Auto enrolment process support: help working through each step from your duties start date onwards.
Payroll and pension coordination: pension deductions and contributions kept in line with your payroll.
Help understanding employer responsibilities: what you must do, by when, for each member of staff.

Common questions

Do I need a workplace pension if I only have one employee?

Yes, if that person is aged 22 to State Pension age, earns at least £10,000 a year and normally works in the UK. Your duties start on their first day, whatever the size of the business.

Can my employee opt out?

Yes, but only after they have been enrolled, and the choice must be theirs. If they opt out within a month of being enrolled, you refund their contributions. You must not suggest or encourage it.

What is the difference between the £10,000 trigger and qualifying earnings?

The £10,000 trigger decides who must be enrolled. Contributions are then worked out on qualifying earnings, the part of pay between £6,240 and £50,270 a year, unless your scheme uses another basis.

Do I need a declaration of compliance if nobody needed enrolling?

Yes. Every employer completes one within 5 months of its duties start date, and a re-declaration every 3 years, even when there is nobody to enrol.

Can I delay enrolling a new starter?

You can postpone for up to 3 months from their start date, if you write to them within 6 weeks to say so. If they ask to join during that time, you must enrol them.

What does HCA need from me to help with auto enrolment?

Your duties start date, your pension scheme provider if you have one, and each worker’s date of birth, pay and pay frequency. If you already have a scheme, tell us when you last completed a declaration of compliance.

Your next step

Tell us your duties start date, how many staff you have and which pension scheme you use, if any. Call 0113 460 1786, email ask@hca-accountants.com or use our contact page.

We’ll agree the scope of support with you before work begins.

Official sources

Sources

Rules can change. Review the official page before making a decision.

Need help with auto enrolment?

Tell us your duties start date, how many staff you have and which pension scheme you use.