Concerns Among Small Businesses as Deadline For Auto-Enrolment Looms
Enterprises could face fines of up to £500 a day if they fall foul of the pensions scheme
52% of UK small and micro businesses are not confident that their business will be ready to offer staff a workplace pension scheme despite the goverment’s fast-approaching auto-enrolment deadline.
That’s according to a new report by Geniac, which surveyed 514 UK businesses with turnover of £500,000 or less.
By law, all small businesses will be required to provide a workplace pension for eligible staff by 2018 while firms with 30 staff or fewer have to do so by April 1 2017.
Businesses without PAYE schemes must then start the auto-enrolment process from April 1.
Enterprises that fail to implement such practices could face fines of up to £500 a day, with the survey having suggested that these fines could affect over half of all small enterprises.
Mike Galvin, co-founder of Geniac, said:
“The fact that over half of small businesses are unprepared for auto enrolment should ring alarm bells. Entrepreneurs must avoid sleepwalking up to the deadline as this could cost them dearly, particularly fledgling companies with limited budgets.
“Thousands of business owners are simply in the dark over how to handle this major administrative change, or are putting off sorting it because of the time involved.”
Worried about auto-enrolment? Read this guide on our sister site Startups.co.uk.