Auto-enrolment applies to all employers with at least one employee, including directors of limited companies who have employment contracts and are paid through PAYE.

Eligible workers are typically those aged 22 to State Pension age earning over £10,000 annually; you must assess your staff every pay period to identify who qualifies.

The minimum total contribution is 8% of qualifying earnings, with employers required to pay at least 3% and employees contributing 5%, though you can choose to pay more to attract talent.

Qualifying earnings include elements like basic salary, bonuses, commission, and overtime, calculated between the lower and upper earnings limits set by HMRC.

You must select a qualifying pension scheme approved by The Pensions Regulator; options include master trusts like NEST or setting up your own scheme with provider support.

Contribution deadlines are tied to your payroll schedule; employee deductions must be made before payday and paid to the pension provider promptly to avoid compliance issues.

Tax relief on employee contributions is usually handled automatically by the pension provider, but you need to ensure the correct method is used for your scheme to maximize benefits.

Ongoing duties include re-enrolling eligible staff every three years and maintaining records of assessments, contributions, and communications for at least six years as per HMRC rules.

Penalties for non-compliance can be significant, with fixed fines and escalating charges for persistent failures, so it's crucial to stay on top of your obligations.

As an employer, you can claim tax relief on your pension contributions, reducing your overall tax liability and making it a cost-effective benefit for your business.