Can my accountant help with pensions and auto-enrolment?
If you employ staff, workplace pensions and auto-enrolment aren’t optional extras—they’re a legal requirement. But many small business owners quickly find that understanding and complying with pension rules is more complicated than they expected.
A natural question follows: Can your accountant help with pensions and auto-enrolment? The answer is usually yes, but the level of support can vary depending on the accountant’s services and expertise.
What Is Auto-Enrolment?
Auto-enrolment refers to the UK government’s workplace pension scheme, introduced to help more people save for retirement. Under the law, every employer must:
Assess their workforce to identify eligible employees
Automatically enrol eligible staff into a qualifying pension scheme
Make minimum employer pension contributions
Submit declarations of compliance to The Pensions Regulator
Even if you only have one employee, the rules apply to you.
What Are Employer Responsibilities for Auto-Enrolment?
As an employer, your responsibilities around auto-enrolment include:
Setting up a qualifying pension scheme
Assessing your workforce at each payroll run to check eligibility
Communicating with employees about their rights and contributions
Enrolling eligible employees into the scheme
Making the correct contributions for both employee and employer portions
Handling opt-ins and opt-outs
Keeping detailed records about enrolment and communications
Submitting a Declaration of Compliance to The Pensions Regulator
Failure to comply can lead to fines, penalties, and enforcement action.
What Parts Are Outside an Accountant’s Role?
There’s an important distinction between administering auto-enrolment and giving pension investment advice.
Most accountants can help with the practical, payroll-related side of auto-enrolment, but they can’t provide regulated financial advice on:
Which pension fund your business should choose (other than basic factual information)
Investment strategies
Fund performance comparisons
For those areas, you’d typically work with an Independent Financial Adviser (IFA) or a pension provider directly.
How Does Auto-Enrolment Fit Into Payroll?
Because pension contributions are deducted directly from employee pay, auto-enrolment is closely linked to your payroll process.
Your accountant (if handling payroll) will:
Assess employees each pay period (especially important for variable pay or hours)
Calculate employee and employer pension contributions
Process opt-in and opt-out requests
Generate reports for both the pension provider and The Pensions Regulator
In many cases, the accountant can submit data directly to the pension scheme provider using payroll software integrations.
What About Ongoing Compliance?
Auto-enrolment isn’t a one-off task. Even after you’ve set everything up, there are ongoing duties, including:
Processing new starters and enrolling them if they become eligible
Re-assessing employees each pay period
Managing opt-outs and re-enrolments every three years
Keeping up with changes to contribution rates (these are set by law and can change over time)
An accountant handling your payroll is well-placed to help with this ongoing work.
Do All Accountants Offer Auto-Enrolment Services?
Not necessarily. Some accountants only offer core accounting and tax services, while others provide full payroll and pension administration support.
Some may also partner with a specialist payroll bureau or recommend third-party software that integrates with your payroll system.
It’s worth clarifying with your accountant:
Whether they handle auto-enrolment setup
Whether they manage the ongoing monthly duties
If they’ll submit the Declaration of Compliance on your behalf
What software or systems they use
Whether any parts are outsourced to a third party
Can You Handle Auto-Enrolment Without an Accountant?
Yes, many small businesses handle auto-enrolment themselves, especially if they’re already running their own payroll. Most pension providers offer online portals where you can upload payroll data and manage contributions manually.
However, for businesses without time or confidence in handling this correctly, the risk of mistakes or missed deadlines can make using an accountant or payroll provider worthwhile.
What Happens If You Get Auto-Enrolment Wrong?
Mistakes with auto-enrolment can lead to enforcement action from The Pensions Regulator (TPR).
Common issues include:
Failing to enrol eligible employees
Missing deadlines
Making incorrect contributions
Failing to submit a Declaration of Compliance
Penalties can include:
Fixed fines (£400)
Daily escalating fines (ranging from £50 to £10,000 per day depending on business size)
In extreme cases, persistent non-compliance can lead to court action.
Summary: The Accountant’s Role in Auto-Enrolment
In most cases, if your accountant runs your payroll, they can help with:
Assessment of employees
Calculating pension contributions
Updating payroll to reflect pension deductions
Submitting reports to your pension provider
Filing the Declaration of Compliance
Keeping records for audit purposes
However, advice on which pension scheme to choose or how funds are invested falls outside the typical accountant’s role.
