A member of the UK200Group comments on the news that SMEs are not ready for auto-enrolment
A member of the UK200Group of independent accountancy and law firms has today commented on news that a study undertaken by NOW: Pensions has found that one in four small businesses have yet to address auto-enrolment legislation, despite thousands of firms being drawn into the scheme from today (1 June). The rules mean that companies with fewer than 30 employees must take steps to ensure that people are saving for their retirement and firms that fail to do so could face escalating fines of up to £500 per day. NOW: Pensions claims that Britain’s small businesses could be ‘facing a bill of up to £173m a day if they don’t sort out auto-enrolment on time.’
Jonathan Russell, Partner at UK200Group member firm ReesRussell, said: “It does not surprise anyone who advises small businesses that they are not prepared for auto-enrolment; indeed it would be more of a surprise if they said they were. In part it is down to the continued inability for the Government to effectively communicate with small businesses and partly the unwillingness or incredulity that despite constant promises government is yet again foisting more costs and more red tape on already overburdened and overstretched small businesses. Many small businesses do not have the resource or knowledge to deal with auto-enrolment and as a result are burying their heads and hoping that it will go away.”