14 C
Monday, June 17, 2024

Auto enrolment is here and some small businesses are realising this the hard way

Accrington-based chartered accountants are seeing a flurry of small businesses incurring large fines for not complying in time with their designated staging date.

The main issues are predominantly around the failure of employers attending to the initial auto enrolment process correctly. We haven’t seen this problem during the implementation period for larger business as they have the resources to deal with the process before their staging date.

The Pensions Regulator has the power to issue a statutory notice which compels an employer to put right any omission. Failure to comply with this notice leads to an initial fixed penalty of £400. If the failure continues, the Pensions Regulator has the power to levy a daily penalty varying between £50 to £10,000 per day, depending on the number of employees.

We are now seeing penalties being imposed on small employers and so far we have found the Pensions Regulator to be unsympathetic to any appeal against the size of the penalty.
The lesson is clear.

All businesses, no matter the size, must comply and if they do not they will be challenged by the Pensions Regulator. If left for even a small period of time, these charges can become quite large.

My recommendation is for small businesses owners to seek help from their accountant as soon as possible. Whatever fee your accountant charges for this help will likely be outweighed by the peace of mind you gain knowing penalty charges are not mounting up.



Scott Dylan on AI’s Future: Ethical Challenges and Real-World Impact

Scott Dylan discusses the ethical aspects and transformative potential...

US Open 2024: DeChambeau beats McIlroy with golf ‘shot of life’

Bryson DeChambeau said he had hit "the shot of...

Five effective PR strategies for care home providers revealed

In the competitive social care landscape, care home providers...

Best Horse Racing Betting Apps In The UK – June 2024

If you are looking for the top horse racing...

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

Best Betting Sites UK for June 2024

It isn't an understatement when we say that the...

Fearless fundraisers needed to take the heat for Rainbow Hub

Do you and your work colleagues have what it...

College sustainability expert helps homeless charity save thousands on energy costs 

Nelson and Colne College’s sustainability expert has teamed up...

Bespoke named Best Place to Work by The Sunday Times

Chorley-based digital marketing agency Bespoke has been named by the...

More News

Lancaster shop worker fined for selling vape to underage girl

A man working in a Lancaster vape shop has been fined £916 for selling a disposable flavoured vape to a teenager without asking for...

One in three businesses in Lancashire fail test knife purchases

Trading Standards revealed that one in three Lancashire businesses failed their test purchases for knife sales. Operation Sceptre, an operation focusing on knife crime, involved...

Five Preston stores fail underage knife sales test

Five out of eight traders in Preston have failed a knives test purchase set up by Trading Standards officers and police. Young volunteers from across...