Auto-enrolment applies to most employers with at least one employee earning over £10,000 a year – you must assess and enrol them automatically.

Minimum contributions are currently 3% from employers and 5% from employees on qualifying earnings, but you can pay more for better benefits.

Qualifying earnings include salary, bonuses, and commission between £6,240 and £50,270 per year (2025/26 thresholds).

Tax relief: Employer contributions are generally tax-deductible as a business expense, reducing your corporation tax or income tax bill.

Deadlines: Contributions must be paid to the pension scheme by the 22nd of the month after deduction from payroll to avoid penalties.

Record-keeping: Keep records of assessments, contributions, and opt-outs for six years – HMRC or The Pensions Regulator can request them.

Types of schemes: You can use NEST, a master trust, or set up your own scheme, but all must meet auto-enrolment standards.

Contributions for directors: If you're a limited company director with no other employees, auto-enrolment might not apply, but you can still make pension contributions.

Penalties: Failing to comply can result in fines from £50 to £10,000 per day, depending on the severity and duration of non-compliance.

Opting out: Employees can opt out within one month of enrolment, and you must refund any contributions paid during that period.