There has been a staggering rise in the number of penalties handed out for non-compliance with the auto enrolment pension scheme. Unbelievably the quarter July – September saw over 15 times the number of penalties handed out to small and micro-businesses with 576 handed out in total during this period, according to the Pensions Regulator.
Are people adhering to the Auto Enrolment Pension scheme?
The government are so concerned about the number of businesses missing the deadlines they have released a short video urging people and small businesses not to ignore the workplace pension. The fines for doing so are also quite staggering with a daily increasing fine being applied between £50 and £10,000.
It has moved people with the finances industry to sit up and take notice, in fact the co-founder of an online payroll and workplace pension platform, Paycircle, outlined her major concern at the rise in number of penalties being handed out. She also believed that if this trend continues the fines by 2018 could be even more staggering and may affect over 1 million businesses.
The Future of Auto Enrolment Pensions
The government have also outlined plans that by 2020 they would like to end the end of year tax return and replace it with an online quarterly report. The Federation of Small Businesses (FSB) has outlined their major concern at this as they feel the cost of implementing this would be £2,270 on average per business. Just another cost for a small business to have to manage on top of the impact of the auto enrolment pension scheme.
If you want to ensure your pension scheme is meeting regulations and is being administered correctly, talk to us here at Newton Magnus, experts in accounting for the Dorset area. We offer a no-obligation consultation for new businesses and can help you stay ahead of changes in the law.
Please Call: 01202 697611