Every employer in the country must provide a workplace pension by 2018 or face heavy fines. Are you ready?
By now, you’ll have probably seen the TV adverts with the fluffy multi-coloured monster who everyone ignores. This is because many people have ignored Workplace Pensions for the past few years. But this year you’re really going to have to take notice. …..or face heavy fines.
We’ve used our newsletter a few times in the past to outline the changes that will affect all businesses in the next few years and used an issue of our Pay Less Tax newsletter to outline the details. You can read that here.
We even held a seminar with our friends from HPC last year to highlight the changes, but we know that many small businesses still aren’t ready.
And that there’s about to be a log jam as the amount of businesses that need to register massively increases, causing a big queue for professional advice to do it. The graph below is produced by The Pensions Regulator and shows the numbers.
Make sure you’re ahead of the curve!
So, what’s Auto-enrolment all about?
Auto-enrolment started in April 2012, when employers with over 250 staff had to start providing a pension for everyone. In April 2014, the first medium-sized businesses had to comply. And, by 1 February 2018, all employers must have entered the scheme…..or face heavy fines.
In October 2014, The Pensions Regulator applied the first fines – three firms were each fined £400 for non-compliance by their deadlines of 31 August 2014. But, in 2015, the number of fines started to increase. The Pensions Regulator said that it made over 1,000 £400 fixed-penalty notices between 1 October and 31 December 2015 compared to only 100 fixed-penalty notices in the previous quarter.
These fixed penalty notices are just the first step – daily penalties can then be charged and these can vary from £50 to £10,000 per day!
With over a million employers who need to hit deadlines by 2018, the fines will start coming thick and fast.
So, are you clear on what you need to do?
- Find out your “staging date” – this is the deadline to comply with the regulations. You can find yours here.
- Understand your obligations – talk to your payroll provider, accountant or Independent Financial Adviser
We can help
We understand that this is a complex area and one that you must get exactly right. Some accountants and IFAs are trying to do this themselves. However, we recognise that, instead of seeing this as an opportunity to make sales, we’d rather make sure our clients get the best service available.
Therefore, we’ve teamed up with a specialist company that deals with Auto-Enrolment all day, every day. A lot of companies are asking for large up-front fees to review your payroll and pensions, but our provider will do this for free as part of the ongoing service.
If your staging date is in the next 12 months and you’d like to start the process, please let us know. Or, even if it’s further away but you want to know more, please get in touch using the details below.
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Added by Jon Davies
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