Auto-Enrolment for New Employers
When do new employers have to auto-enrol? Understand duties start date and timeline for first-time employers.
Last updated: 30 January 2025
New employers must understand when and how auto-enrolment duties begin.
When Duties Start
The Trigger
| Event | Duties Start |
|---|---|
| First employee | Starts work |
| That day | Is duties start date |
| From then | All duties apply |
Not Before
| Position | Detail |
|---|---|
| Before first employee | No duties |
| Directors only | May not be employees |
| Until someone starts | Duties don't apply |
First Employee Definition
Who Counts
| Person | Employee? |
|---|---|
| Staff on payroll | Usually yes |
| Paid through PAYE | Yes |
| Not self-employed | Important distinction |
Directors
| Director Status | Position |
|---|---|
| With employment contract | Is employee |
| Without contract | May not be |
| Check carefully | Implications |
Immediate Duties
From Day One
| Duty | Applies |
|---|---|
| Assess workers | Immediately |
| Choose scheme | Must have one |
| Enrol eligible | If applicable |
| Contribute | If enrolled |
Timeline
| Task | Deadline |
|---|---|
| Assessment | On start |
| Scheme needed | For enrolment |
| Enrolment | Or postponement |
| Declaration | Within 5 months |
Practical Steps
Before First Employee
| Step | Action |
|---|---|
| 1 | Research pension providers |
| 2 | Choose and set up scheme |
| 3 | Set up payroll integration |
| 4 | Prepare letters |
| 5 | Understand categories |
When First Employee Starts
| Step | Action |
|---|---|
| 1 | Assess their category |
| 2 | Enrol if eligible (or postpone) |
| 3 | Start contributions |
| 4 | Send appropriate letter |
| 5 | Keep records |
Using Postponement
Buying Time
| If Not Ready | Can |
|---|---|
| Use postponement | Up to 3 months |
| Delay enrolment | Legally |
| Set up scheme | During period |
| Still communicate | Required |
Process
| Step | Action |
|---|---|
| 1 | Decide to postpone |
| 2 | Determine period |
| 3 | Send postponement letter |
| 4 | Set up scheme |
| 5 | Assess at period end |
| 6 | Enrol if eligible |
Scheme Setup
Quick Options
| Provider | Speed |
|---|---|
| NEST | Quick setup |
| People's Pension | Fast |
| NOW: Pensions | Rapid |
NEST Advantages
| Benefit | Detail |
|---|---|
| Must accept | All employers |
| Quick setup | Online |
| No minimum | Size |
| Government-backed | Trusted |
Setup Timeline
| Task | Typical Time |
|---|---|
| Apply | 1 day |
| Approval | 1-7 days |
| Payroll link | 1-3 days |
| Ready to enrol | 1-2 weeks |
Assessment First Employee
Check Their Category
| Criteria | Check |
|---|---|
| Age | 22-SPA for eligible |
| Earnings | Over £10,000 for eligible |
| UK working | Location |
| Category | Determine |
If Eligible
| Then | Must |
|---|---|
| Enrol | Into scheme |
| Contribute | Both parties |
| Communicate | Enrolment letter |
If Not Eligible
| Then | Appropriate |
|---|---|
| Non-eligible | Opt-in letter |
| Entitled | Joining letter |
| Communicate | Their rights |
Declaration Deadline
5 Months
| From | Deadline |
|---|---|
| Duties start date | Plus 5 months |
| First employee start | Calculate from |
| Must complete | By deadline |
Example
| First Employee Starts | Declaration Due |
|---|---|
| 1 January | 31 May |
| 15 March | 14 August |
| 1 October | 28/29 February |
Common Mistakes
New Employer Errors
| Mistake | Problem |
|---|---|
| Not knowing duties | Non-compliance |
| No scheme ready | Can't enrol |
| Missing declaration | Penalties |
| Forgetting letters | Incomplete |
Avoiding Problems
| Practice | Benefit |
|---|---|
| Prepare early | Ready when needed |
| Use postponement | If needed |
| Calendar reminders | Don't miss deadlines |
| Get advice | If unsure |
TPR Communications
Letters You'll Receive
| Letter | When |
|---|---|
| Employer duties | Before/around start |
| Declaration reminder | Approaching deadline |
| Follow-up | If not completed |
Responding
| Action | Required |
|---|---|
| Note deadlines | From letters |
| Take action | Complete duties |
| Declare | By deadline |
Single Employee Situations
Just One Employee
| Position | Still Must |
|---|---|
| Only one person | Comply fully |
| Small employer | Same duties |
| No exemption | For size |
Cost Considerations
| Issue | Reality |
|---|---|
| Cost to setup | Usually free/low |
| Contributions | 3% minimum |
| Administration | Manageable |
| Compliance | Required |
Getting Help
Resources
| Resource | Access |
|---|---|
| TPR website | Free guidance |
| TPR helpline | Phone support |
| Accountant | Professional advice |
| Pension provider | Setup help |
Professional Help
| Adviser | Can Help With |
|---|---|
| Accountant | Setup, payroll |
| Pension adviser | Scheme choice |
| HR consultant | Processes |
Summary
Key Points
| Element | Detail |
|---|---|
| Duties start | First employee start date |
| 5-month deadline | Declaration |
| Scheme needed | To enrol |
| Postponement | Available |
Timeline
| Task | When |
|---|---|
| Prepare | Before first employee |
| Assess | On start date |
| Enrol/postpone | Promptly |
| Declare | Within 5 months |
Related answers
Auto-Enrolment Overview
What is workplace pension auto-enrolment? Understand the UK's automatic enrolment system and employer duties for pension contributions.
Choosing a Pension Provider
How do you choose a workplace pension provider? Compare options for auto-enrolment including NEST and other providers.
Declaration of Compliance
What is the declaration of compliance? Understand the requirement to declare your auto-enrolment compliance to The Pensions Regulator.
Frequently Asked Questions
- When do auto-enrolment duties start for new employers?
- Your duties start on the day your first employee starts work. From that date, you must assess workers, enrol eligible employees, and set up a pension scheme. You have 5 months to complete your declaration of compliance.
- Do I need a pension scheme before I hire anyone?
- You should have a scheme ready, but technically duties only start when your first employee starts. It's sensible to set up a scheme before hiring so you're prepared. NEST is a quick option that accepts all employers.
- What if I can't set everything up in time?
- You can use postponement to delay enrolment for up to 3 months, giving you time to set up your scheme. But you must still communicate with workers about postponement. Don't ignore duties - penalties apply from day one.