Small businesses could face hefty fines of up to £22million, should they fail to meet their auto-enrolment staging dates, according to reports.
The news comes after statistics The Pensions Regulator (TPR) revealed that some 52,000 small firms or ‘micro-businesses’ across the UK could face fines for non-compliance.
Typically, a micro business or micro-employer is classed as any firm which employs fewer than four employees.
Amongst such firms, approximately 20 per cent have limited or no understanding of auto-enrolment pensions, staging dates, or the importance of the new regime, according to TPR.
A study revealed that an increasing number of micro businesses are turning toward auto enrolment after their unique staging dates – despite the fact that firms face a £400 fixed penalty notice for non-compliance, should they fail to automatically enrol their employees onto a pension scheme by this date.
Businesses of all shapes and sizes are strongly advised to keep a watchful eye on their staging dates – and to prepare for auto-enrolment sooner rather than later, in order to avoid facing hefty fines.
At Moore Thompson, we can advise on auto-enrolment pensions and help to ensure that your business is fully organised and compliant well before your staging date. We can also provide ongoing support and payroll advice where necessary. If you would like more information about our payroll services, please contact us.