Are you aware of your auto enrolment duties?

Over 100,000 employers have now enrolled more than 6 million workers in UK pension schemes under auto enrolment.

These are indeed impressive statistics, yet it would be a mistake to assume that all employers are complying at the first time of asking, or that there is no enforcement action being taken to ensure that such errors are corrected.

The Pensions Regulator latest statistics confirm that many employers have been subject to fines already. In the first quarter of 2016 there were:
 
  • 806 fixed penalty notices (bringing the total issued since that start of auto enrolment to 2,234)
  • 96 escalating penalty notices (bringing the total issued to 127)
It is evident that the numbers are now escalating, and with fixed penalties standing at £400, and escalating penalties varying (by employer size) between £50 and £10,000 per day, there is a clear incentive for employers to fully comply with the new legislation.

As we have stated for many years, early action is the key to success (and penalty avoidance) here, so we would encourage all employers to remain aware of their auto enrolment duties and allow time to prepare for their auto enrolment duties.

Many Owner Managed Businesses will be operating small businesses without sufficient resource required to ensure compliance with the legislation. Furthermore, with 200,000 employers meeting their Staging Dates in Q4 of this year alone, there is also pressure on pension provider capacity and pro-active support available from the pension market.

At Moore Stephens we have designed an easy to administer, one-stop auto enrolment solution which will help employers through everything they need to consider.
 
Auto enrolment is complicated for an employer to deal with and therefore it is likely that employers might leave the arrangements to the last minute. It is also likely that there will be very few pension providers who will want to deal with small employers with minimal contributions. Our solution will therefore capture all, providing a compliant, simple, straight forward process which will also be highly cost effective to any employer.
 
We recommend that employers establish their schemes early even if they postpone contributions until a later staging date. This has the advantage of future proofing compliance with the legislation without the need for contributions until actually required.
 
If you would like any help in implementing auto enrolment please contact your usual Moore Stephens contact or Stuart Stroud at stuart.stroud@moorestephens.com

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