Half of small businesses struggling with Auto-enrolment

  • by Carole Jordan
  • 25 Jan, 2016
Small business owner struggling with organising Auto-enrolment

In the UK nearly half of small businesses admit to struggling with Auto-enrolment, and how to set up a workplace pension scheme for their employees.

Are you struggling with Auto-enrolment?

Research carried out by the Federation of Small Businesses  (FSB) has highlighted this issue, as the deadline approaches for more than 1 million firms to establish workplace pensions for their employees. It seems that many are still unclear about their obligations under Auto-enrolment, when they need to comply, and how much it will cost to implement.

The research found that, of those questioned, 75% of business owners believe that Auto-enrolment – where all employees are offered a workplace pension – would put too much pressure on their businesses. 25% were concerned that their business might not be able to cope with the changes. Despite the fact that the majority of businesses are confident they’ll be able to implement auto-enrolment, many are unsure of what they need to do and one in four don’t even know when they’re supposed to start.

Some 60,000 larger companies with 6 million employees have already set up the scheme and in the next couple of years, more than 1 million small and micro businesses will be obliged to set up pensions for their employees under these rules.

Despite the misgivings, the research has found that companies generally believe that the pension system will be beneficial for their staff. It seems, however, that many have underestimated the costs involved in setting it up.

Those who delay implementing Auto-enrolment risk a fine, so the message is clear: make sure you get to grips with your obligations and don’t delay.

Please get in touch if you need our help. Call an advisor on: 01273 882200.

All details above were correct at the time of publishing - for more up to date information please get in touch .

You might also be interested in...

Why not leave us a comment, or share with a friend...

Want free advice for your small business?
Sign up to our blog

Browse our other Small Business posts

Our latest blog

by Carole Jordan 11 Aug, 2017

HMRC have released their new advisory fuel rates for drivers of company vehicles. These came into effect from 1st July and allow reimbursement of fuel tax free at these levels.

by Carole Jordan 04 Aug, 2017

Nobody wants to pay tax on divorce. So how do you keep your tax bill down while coming to a sensible arrangement with your spouse?

by Carole Jordan 28 Jul, 2017

Since the change to Dividend tax came in you may be wondering if there are more tax efficient ways of drawing funds from your company.  Read more for an idea that can save tax each year.

by Carole Jordan 18 Jul, 2017

I love the summer for sitting back and reflecting on the year. Thinking back to the dark days of winter and forward to the joy of Christmas time. Now is the ideal time to review how your business is going and as you revive yourself through holidays and sunshine you’ll be well placed to make any changes come the autumn.

by Carole Jordan 17 Jul, 2017
Landlords will be expected to use Cash Basis Accounting from 2017/18.  
So what does that mean for your rental property accounts and tax?
More posts

Which Small Business support are you looking for?

Share by: