UK200Group members comment on research into the auto-enrolment process
Members of the UK200Group of independent accountancy and law firms have today commented on research into auto-enrolment that found the average time to help SMEs to stage was just 20 days. According to the Chartered Institute of Payroll Professionals (CIPP) which published the findings, original estimates had put the period at around 100 days.
Duncan Montgomery, tax partner at UK200Group member firm Whittingham Riddell, said: “For an SME with a stable workforce, auto-enrolment will be and is a simple process where the danger is in not recognising the effect of staff changes when they do happen. If, however, seasonal or temporary workers are frequently in and out, the process can be arduous and complicated if not done by experienced people. The speed of implementation is not as bad as first thought for many.”
Jonathan Russell, partner at UK200Group member firm ReesRussell, said: “It is good news it will only take small businesses a 20-day lead time, not 100, to handle auto enrolment for pensions – that is 20 days if the small business has the expertise to handle it, has the spare time to deal with it, can find their way through the conflicting and often ambiguous information on the Pension Regulators website and we are told it will only increase payroll handling costs by 30%. Wonderful small businesses have an extra tax burden which they must also sell to their employees and pick up the costs of delivering it. Yes there are lots of positives about auto enrolment of people into pensions but at a time when most small businesses are still struggling to improve margins and recover from a long recession. The fact that government cuts aren’t going to be as high as expected, or the process take as long, is little satisfaction.
