This is a typical response when business owners are asked about auto enrolment. Alternatively they state ‘oh that’s way off yet I don’t need to worry about it’.
Well it may be 18 months or more before your staging date, (you do know your staging date don’t you?) but early planning and action is the first step on your road to successful implementation of Auto Enrolment.
First of all what is auto enrolment?
Well, it’s a legal obligation for you, as an employer to provide a qualifying pension scheme for your employees. Here are the common objections we hear:-
Objection: I don’t have any employees so it doesn’t apply to me.
Response: You still have to file a certificate of compliance with the Pensions Regulator (TPR)
Objection: We only have two directors and we have our own pension arrangements so we are going to opt out.
Response: You have to have a scheme in place to opt out of and provide a certificate of compliance to TPR
Objection: I only have low paid workers and they are not eligible.
Response: Those employees do have the right to opt into a pension scheme, so one must be available and you must file a certificate of compliance with TPR
From the 1st June 2015 1.2 million small business will start having to set up a qualifying pension scheme. It is guaranteed that a lot of these will be close to the staging date and any delays in getting a scheme in place by the staging date will leave your business open to daily penalties starting at £50 per day and going up to £10,000 per day as well as a fixed fine of £400.
At Aspirations we have devised our 5 step plan for Auto enrolment success, which covers the following areas:-
1. Write down your strategy to implement a qualifying pension scheme
2. Assess the types of workers and costs involved
3. The impact Auto Enrolment will have on my business
4. Communicate with your workforce
5. Review and update your systems
If you would like a copy of our guide please email team@aspirationsaccountancy.carciofinodev.co.uk or go to www.aspirationsaccountancy.co.uk or call 01634 298238 where one of our team will be delighted to help you.
