Back in April we wrote about the new Workplace Pensions and Automatic Enrolment. Since then some concerning information has been brought to light following some research by HW Fisher & Company:
- 67% of the 750 SMEs responding to the survey said that they have no idea when their ‘Staging Date’ is;
- 49% of them said that they understand little or nothing about the preparations they will have to make;
- 35% said they don’t know how to start the process so have done absolutely nothing so far;
- 30% of the respondents are concerned about the set-up costs;
- 32% of them said that they do not know how to gauge the future impact of participating in Workplace Pensions;
- 62% are worried about the costs of continuously having to make employer contributions to staff pensions;
- and 47% voiced concerns about the additional administrative overhead which would be involved managing the scheme.
The findings are not surprising. After all, many SMEs will not have any previous knowledge of dealing with staff pension schemes, nor will they have experience or perhaps even the budget to cover the associated costs. While the reasoning behind the introduction of WorkPlace Pensions and Automatic Enrolment is sound, the reality is that this is likely to become another unwelcome administrative burden for the smaller business owner – and of course it represents another cost.
If you’re like one of the many small businesses above, read Taxfile’s original post to get a bit more background information. This will help you to answer many of the questions. The post features useful information and links including how to find one’s own Staging Date, plus a whole lot more.
Taxfile are accountants and tax advisers with offices in South London (Dulwich & Tulse Hill) and near Exeter, Devon.