A press release from The Pensions Regulator this morning, (21st April 2016), and articles in the financial press highlights the plight of employers who make a mess of their auto-enrolment duties. Swindon Town Football Company Limited, the trading entity behind the Division 1 football club, was fined £22,900 for not enrolling workers into a pension scheme and other workplace pension duties. The original press release is here and the article in CityWire is here,
The Pensions Regulator underlines the point that delay will not save money; fines and backdated contributions will be payable and the publicity will not be helpful!
For employers the first decision needs to be; are you going to do it yourselves or will you use an outside resource to ensure everything gets does properly and on time?
Starting early allows you to consider what steps you can take to minimise the costs and simplify the administration. For family businesses, making everyone a director may more accurately reflect the actual business situation and will take the business out of scope from auto-enrolment. This will not be practical in most situations as control of the business will be spread much wider than before; trying to avoid auto-enrolment may cause more problems than it solves!
For business owners, embracing auto-enrolment can have positive spin-offs; the ability to extract value from the business in a tax efficient manner; incentivising the workforce; allowing the business to differentiate itself from less well run competitors and keeping The Pension Regulator from your door!
As an employer, take some steps to get yourself ready for workplace pensions;
- Get your personnel records up to date; director’s agreements, contracts of employment and details of any existing pensions.
- Get basic contact details up to date; full name, home address, a private e-mail address, mobile telephone number, date of birth.
- Look up your staging date from The Pensions Regulator website and explore your options early.
As IFAs we are well placed to help you as little or as much as you require; we will work with your payroll provider, train up your own staff or do the whole process for you, if that is what you would prefer.
If you would like to know more about how we can help you plan and realise your financial goals then contact us at firstname.lastname@example.org or call us on 01223 792 196.
The information contained is for guidance only and does not constitute financial advice. It is based on our understanding of UK legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly no responsibility can be assumed by Martin-Redman Partners its officers or employees, for any loss in connection with the content hereof and any such action or inaction.