Temporary workers - your pension obligations
If you’re employing temporary workers for the summer season don’t forget that they have the same rights to join your workplace pension as permanent employees. What do you need to do?
Pension auto-enrolment
Workplace pensions have been around for over a decade. Despite this, every year some employers forget that temporary employees they take on, say during the summer period, have the same rights to workplace pensions as their full-time workers. Because of this HMRC is currently running a campaign to remind employers.
Assess and advise
If you’re an employer you must assess temporary staff for their right to be enrolled in your workplace pension scheme each time you pay them, even if they only work for you for a few days.
If you don’t assess your employees for entitlement to join your workplace pension it can result in a warning from HMRC or The Pensions Regulator. This can escalate to a fine of £400 initially and then daily penalties of between £50 and £10,000.
You can avoid having to assess your employees if they will work for you for no more than three months. Do this by using the auto-enrolment postponement procedure.
Related Topics
-
Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
-
HMRC targets “dodgy shops” in new compliance crackdown
The government has announced a new crackdown on businesses suspected of facilitating tax evasion, with HMRC increasing its focus on so-called "dodgy shops" used to enable tax fraud. What is HMRC targeting?
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.