Auto enrolment is becoming a reality for a growing number of small businesses, but new research released this week shows that just over half of small businesses are unsure whether they will meet the government deadline to start providing a workplace pension.
Accounting software vendor Geniac spoke to a little more than 500 buisnesses with a turnover under £500,000 and found that half are in danger of incurring significant penalties unless they make provisions for their employees in time.
In terms of dates, all SMEs are required to set up a workplace pension for eligible staff by 2018. Within that, most small businesses (those with 30 staff or less) must have it in place by April 1 2017. Businesses without PAYE schemes must then start the auto-enrolment process from April 1
Mike Galvin, Geniac co-founder, commented: “The fact that over half of small businesses are unprepared for auto-enrolment should ring alarm bells. Entrepreneurs must avoid sleepwalking up to the deadline as this could cost them dearly, particularly fledgling companies with limited budgets.
“Thousands of business owners are simply in the dark over how to handle this major administrative change, or are putting off sorting it because of the time involved.”
There are numerous sources of advice on how to get up to speed on your auto enrolment. Start here