Auto-enrolment Pensions Set-Up Could Cost Small Businesses £317m
Thousands of UK small and micro firms are "unnecessarily" spending out on compliance advice from experts to set-up pension schemes
Over the next three years the UK’s small and micro businesses will spend an estimated £317m on automatic enrolment (auto-enrolment) workplace pension set-up costs, research from Paycircle suggests.
With around 1.8 million small firms required to set up a workplace pension between now and 2018 – 500,000 having done so already in 2016 – the research predict that many of these businesses are spending an average of £440 for advice on auto-enrolment compliance.
Paycircle has claimed that in many cases this complaince expenditure is unnecessary as some smaller companies are exempt for auto-enrolemnt, some providers do not charge set-up costs, and others automate the set-up and contributions process.
Catherine Pinkey, co-founder of Paycircle, commented: “We need to debunk the myth that only an expert can take care of your auto-enrolment because it’s highly technical: that’s what certain advisers may want you to think but the reality is quite the opposite.
“It doesn’t have to cost a penny and, for smaller companies, can be done in little over an hour.”