UK Small Businesses Could Lose £25m in Auto-enrolment Fines
Over 2,000 small enterprises have already missed the deadline and have been fined by The Pensions Regulator
UK small businesses are to face fines of up to £25m for missing the auto-enrolment deadline, according to research by Paycircle.
Highlighting data from The Pensions Regulator (TPR), 63,700 small enterprises have set up a workplace pension since July 2012 up to the end of August 2015 – suggesting over 95% of businesses are compliant with the law. However, the TPR has revealed that 2,234 companies have already missed the deadline and incurred fixed penalty notices of £400.
According to the survey, between now and 2018 some 1.8 million small business owners will be required to set up a workplace pension but base current rate of fines being handed out by The TPR, a large number of these businesses (approximately 63,000 employers) will miss the deadline and recieve non-compliance fines totalling over £25m.
Catherine Pinkney, co-founder of Paycircle, said:
“Not only will many of the UK’s smallest businesses face significant set-up costs for their workplace pensions, but a large number, according to the latest data from The Pensions Regulator, will also receive a fixed penalty fine.
“In reality, the percentage of smaller employers that incur a penalty is likely to be higher than the rate to date as smaller companies have less people and time for administration duties. Now is the time for small firms to be proactive about auto-enrolment, or face fines that can rapidly escalate.”