What is Corporation Tax?
Essentially Corporation Tax is a tax on profits made by Limited Companies.
-
Who we are
About us
We're more than just accountants. We care about our clients and build long term relationships.
Client stories
We work with some great clients. Read about their challenges and how we have helped them.
Meet the team
Great work requires great people and we think we have some of the best. Learn more about them here.
Business sectors we support
We have a range of clients. No two projects are the same, and every day we solve fresh challenges.
Join our team
If you want to join an enthusiatic team and continue your learning we'd love to hear from you.
- What we do
Taxation for individuals and trusts
Be compliant - we know the rules.
Audit and assurance services
Navigate regulatory complexity - we provide the expertise.
Accounting and taxation for business
Focus on your business - we'll manage the books and tax.
Charity and community interest companies (CICs)
Accounting for good - we have experience of CICs.
International accountancy services
Remove the hassle - let us take care of your International tax and accounting.
Bookkeeping, VAT, cloud accounting & payroll
Reduce the pain - we can handle your monthly calculations.
Tax planning
Reduce your tax liabilities - we'll show you how.
Business advisory and wealth creation
Grow your business and wealth - we know what it takes.
What is Auto Enrolment?
Auto Enrolment is a requirement for employers to offer contributory pension arrangements to any employee who meets certain requirements.
Qualifying employees don’t have to accept the invitation to join the Workplace Pension scheme, but they must be given the opportunity.
The qualifying requirements are as follows:
- The employee must work in the UK and be a UK resident
- They are not already in a suitable workplace scheme
- They are aged 22 or over, but under the UK State Pension age
- They earn more than £10,000 a year in the Tax Year 2022-23
Employees earning less than £10,000, who meet the other requirements and earn more than £6,240, can ask their employer to join and the employer cannot refuse.
If an employee wishes to opt out they may do so, but they do need to complete an opt-out form to confirm their decision. If they subsequently decide that they wish to join after all, the employer must allow them to do so.
How does the Pension Scheme work – is it Contributory?
The Workplace Pension is contributory on both sides – which means that both the employee and employer contribute. Contribution levels can vary, but there are minimum levels that each party has to make. In general, these are 5% contribution from the employee and 3% contribution from the employer. The Government also contributes in the form of tax relief.
The minimum contribution applies to earnings over what’s known as ‘Qualifying Earnings’, which is anything over £6,240, up to a limit of £50, 270. Some employers do, however, set up the scheme so that contributions are made on the total earnings.
Employees should be made aware on what basis their scheme has been set up and what their, and the Company’s, contribution will be.
Failure to comply with the employer obligations, as laid down in the legal duties of automatic enrolment legislation, could lead to investigation by the Pensions Regulator, followed by fines or other sanctions.
Related Posts
- What we do