It cannot have escaped your notice, as a business owner with employees, that the Government has introduced requirements to make pension contributions for your staff. We explained the basics of the Auto Enrolment Pensions scheme last year which involves making deductions from their gross pay and making employer contributions into the scheme ,and it is your responsibility to keep abreast of the law and changes in the regulations and administration of the scheme.
Auto Enrolment Pensions And Your Business
Seeing and reading that new pension regulation are in place seems to be one thing, implementing the requirements of the scheme seems to have been something towards the bottom of some business owners lists. But there are substantial penalties for non compliance, which are managed by The Pension Regulator . Work has been in place to follow up on businesses and their use of the scheme
They hope to complete the last phase of the work by April 2018, with TPR predicting that around 73% of all small businesses, and nearly half of micro businesses, will have eligible staff that will need enrollment. Their most recent quarterly report, to March 31 2017 and released on their website on 31 July, offered some comfort that non-compliance with enrollment requirements thus far had been in the minority – 7m employees employed by 500,000 employers had registered at 31 March.
However the regulator has also shown a no nonsense approach to those not complying. They have issued in the 12 months to March 2107;
12,181 fixed penalty notices
187 statutory demands for information
1,193 unpaid contribution notices
2,527 escalating penalty notices
Escalating penalties, for those continuing to ignore the Regulator’s notices, range from £50 to £10,000 per day. In addition to financial penalties, the Pensions Regulator has also started to name and shame delinquent employers. A quarterly publication of businesses that with an escalating penalty, which they have paid, but have not yet complied, or businesses who are the subject of a court order to enforce payment is now in force. Businesses that compete for public sector work can be excluded from such projects and frameworks for non-compliance.
If you are unsure of your requirements for auto enrolment pensions, or you need some assistance in implementing a scheme, Newton Magnus are here to help. Highly experienced accountants in the Dorset area, Newton Magnus can help keep you one step ahead with your pension scheme.
Please Call: 01202 697611