Auto-enrolment penalties jump significantly in Q3 2016
With the deadline for auto-enrolment looming, 26,000 firms have missed their deadline and received notices from The Pensions Regulator
The number of small and micro-businesses being fined for non-compliance with auto-enrolment has risen significantly in the third quarter of 2016 to 3,728.
However, the number of Compliance Notices rose to over 26,000 over the same period with 95% of firms subsequently complying with auto-enrolment before it escalated to an Escalating Penalty Notice.
In June, research from Paycircle suggested that missed auto-enrolment deadlines could cost UK small businesses £25m in penalties, with 21% of firms completing their application after the staging date had passed in Q2 2016.
To help businesses avoid being penalised for failing to set up an auto-enrolment workplace pension scheme, we’ve explored some of the key auto-enrolment myths and answered some of the most frequently asked questions.
Catherine Pinkney, co-founder of Paycircle, commented: “This latest data from the regulator is proof positive that too many small businesses are still in the dark about their workplace pension duties.
“Many of the smallest businesses still don’t know who to turn to for help. The irony is that for many, doing it themselves can be the quickest and cheapest option.
“The message is still not getting out to smaller business owners that they can set up a fully compliant workplace pension scheme themselves at no cost, and in some cases in as little as an hour.”
Find out everything you need to know to ensure your business is compliant by downloading out Startups.co.uk’s Auto-Enrolment Handbook.