This year alone, more businesses are due to stage than in the whole period since Auto Enrolment (AE) was first introduced. The numbers are so high that commentators believe this year’s results on Auto Enrolment will really test if the processes in place are suitable and working effectively.
Recent figures from The Pensions Regulator (TPR), show that the majority of employers are planning their Auto Enrolment with plenty of time in hand, however, there are still many who are ignoring the legislation, and subsequently, receiving pretty hefty fines for a small business to incur.
A case study of one small business demonstrated how quickly a fine can grow. They initially ignored their staging date and so a compliance notice was issued requiring them to pay the arrears of both the employer and employee contributions. They failed to comply and were fined £400. Subsequently, they were fined £2500 per day (for four days) and the £15,000 in employee back contributions. A total of £25,400 in unnecessary fines!
Since the start of the new legislation, TPR has issued 5000 compliance notices, 1,600 fixed penalty notices of up to £400 and 30 escalating penalty notices which carry a daily fine of £50 – £10,000.
Using an Independent Financial Advisor (IFA) can take out all of the stress and confusion with Auto Enrolment. These Advisers are well versed in the legislation which does occasionally change and can manage the process from beginning to end.
IEP Financial knows that there is no ‘one size fits all’ approach to AE and every business. As part of our service to SME’s, we offer individual presentations and consultation sessions to employees, no matter how many there are, as we believe it is important that an employee understands where their money is going. We also run a complimentary tender service with all the pension providers, but please note, if you leave it until the last minute, some providers won’t be interested in offering terms.
Many SME’s simply don’t have the resource to manage their pension legislation, and are choosing to use an IFA instead, thus ensuring there will be no nasty surprises with any unwanted fines.
We have already successfully guided many businesses through their ‘staging date’ and also provide solutions for all employers of all sizes. Please click here for examples of businesses that have used our expertise, and here for more information on the Auto Enrolment solutions we provide.
If you would like to set up a meeting with one of our Independent Financial Advisors to discuss your Auto Enrolment options, then please call our Brighton Hove office on 01273 208813 and we will be more than happy to help or email [email protected]
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IEP Financial is authorised and regulated by The Financial Conduct Authority (FCA)
This article was originally published on Wednesday, March 9, 2016 – 17:03
