Increases in the minimum pension contribution will occur in line with tax years
Over three-quarters of owners believe the UK’s small business auto-enrolment requirements are putting too much pressure? on their microenterprises, according to new research by the Federation of Small Businesses (FSB).
Only half of those surveyed felt confident that they would be able to meet the government-imposed auto-enrolment deadlines which will occur over the next two years and some 45 per cent of firm leaders who have not yet complied are uncertain about what they need to do.
FSB chairman John Allan said: The government must continue to monitor the roll out of auto-enrolment closely and take steps to lessen the burden on smaller businesses where possible. The move to postpone the planned increase in minimum employer contributions is welcome, as it recognises the extra challenges small firms face.
‘small business will also benefit from the Pension Regulator’s new step-by-step guide and information portal, which is now much better tailored to their needs.
Almost 800, 000 small and micro employers will be subject to auto-enrolment duties by the end of the 2016/2017 tax year.
Ian Cass, the managing director of the Forum of Private Business (FPB), told Business Advice in Januarythat auto-enrolment was a key area he had seen small firms struggle with. Businesses need more proactive and preventative help as regulation and compliance seems to grow every year, he said.
But Ros Altmann, the minister for pensions, defended the policy and an 8.5m to promote it which involved an animated monster called Workie in a blog post on the gov.uk website in November 2015.
if small and micro employers do not comply it will mean that their employees miss out on the opportunity to save for a pension, she wrote.
the government is committed to providing security for working people at every stage of their lives, including giving people the chance to plan for a financially secure retirement. Automatic enrolment is a big part of that.
During his 2015 Autumn Statement, chancellor George Osborne announced that planned increases in the minimum pension contribution would occur in line with tax years, in order to give the smallest employers more time to adjust to the changes and help businesses with the administration of this important boost to our nation’s savings.
