Auto-enrolment hits the smallest businesses
Posted on in Business News
Today, 1st June, up to 14,000 businesses with fewer than 30 employees will be faced with the Government's new pension rules.
These smaller firms have now reached their staging date to automatically enrol their employees in a workplace pension scheme.
The new regulations cover companies that employ anyone over the age of 22 who earns more than £10,000 a year, as well as people with a single employee.
It is part of the Government's automatic enrolment scheme, which was established amid fears people were not putting enough money aside for their old age.
By the end of October 2017, as many as 1.3 million small businesses will be signed up, enrolling 10 million workers into a pension scheme.
Last year, it was businesses with 60+ employees who were affected, and at the time they were due to commence auto-enrolment, SME Insider reported that a third of those affected were not ready for their auto-enrolment process.
Research released today by NOW: Pensions revealed that some 27 per cent or 350,000 small businesses are at risk of getting a fine because they haven't yet given any thought to finding a pension provider. However, this was an improvement on the 44 per cent who admitted they were unprepared last year.
Employers failing to comply with their duties could ultimately face a fixed penalty notice of £400. If they continue to ignore their duties, they face an escalating penalty of between £50 and £10,000 per day for failing to comply with a statutory notice.
Get the support you need
If you're looking for guidance on your auto-enrolment responsibilities, ActSmart can help.
ActSmart have made arrangements to introduce you to Elliott Sanders of Copthorne Hundred Wealth Management, a Partner Practice of St. James's Place Wealth Management.
St. James's Place Wealth Management are one of the leading wealth management organisations in the UK with a national network of advisers. Using their experience, they offer businesses and individuals a wealth management service, incorporating pension advice. The advice is face-to-face and tailored to your business or personal objectives.
- Complimentary initial consultation
- Face-to-face advice
- Impartial advice
- Advice is guaranteed by St. James's Place when recommending any products or services provided by the St. James's Place Group
Phone Elliott Sanders's team on 01372 721616, email Elliott.Sanders@sjpp.co.uk or complete the enquiry form here.
