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09 August 2017

As The Pensions Regulator announces more spot checks, are too many businesses needlessly paying a price by missing their auto-enrolment dates?

More spot checks are to be carried out by The Pensions Regulator (TPR) to make sure that employers are complying with their auto enrolment of workplace pensions duties.  If you employ one or more people, you must meet your obligations. FSB continues to assist thousands of small businesses to set up compliant schemes by their staging dates.

Inspection teams will visit dozens of businesses in and around Glasgow over the coming weeks to check staff are being given the workplace pensions they are entitled to. Spot checks have taken place in other cities and towns across the UK, including Edinburgh, Sheffield, Birmingham and Manchester. Some businesses are failing to comply, and they’re facing serious fines.

In the first three months of 2017, TPR issued 4,673 fixed penalty notices and more than 1,000 escalating penalty notices. A total of 14,502 fixed penalty notices of £400 have now been issued, as well as 2,517 escalating penalty notices of up to £10,000 per day to employers that failed to comply by their staging date.

Some smaller businesses face specific operational pressures. They may have complex employee contract arrangements or have a high proportion of temporary or part-time workers, or seasonal staff, for example. You can find the right scheme with expert advice, but be sure that that’s not going to end up costing you over the odds.

Some businesses may be paying a high fee to a pensions company to sort the matter out for them. There are instances where business owners have been quoted upwards of £12,000 by a company to set up a scheme for around 100 staff, with additional annual fees of around £3,000. Businesses shouldn’t have to pay these types of costs. It’s possible to have a compliant scheme set up for a business employing 115 staff, quickly and easily for not much over £1,000 by a professional provider, with no annual consultancy fees thereafter, and that’s why FSB offers a workplace pensions scheme.

If you have one or more employee, you can find out more about auto enrolment and how FSB can help you at FSB Workplace Pensions

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