Local business owners urged
to act now to avoid pensions penalty nightmare
AS over 750,000 employers face new
responsibilities this year to contribute to their staff pension pots, small
business owners across Southport are being urged to act now to avoid hefty fines
and potential prosecution.
Andrew Geddes who runs TaxAssist Accountants in Southport said:- "A record
number of businesses reach their so called 'staging date' this year for the new
workplace pension scheme. Local business owners will have received their date
from the Pensions Regulator and must automatically enrol eligible employees and
contribute to their pension pot.
We've been advising local businesses since the pension changes were 1st
introduced 5 years ago and many business owners have planned well in advance,
but 2017 will see the new rules come into effect for many more local businesses,
as 750,000 UK employers reach their staging date. Business owners whose staging
date was in 2014, will also need to automatically re-enrol certain staff and
complete a re-declaration of compliance this year.
We're urging local business owners who haven't yet put a scheme in place for
their staff, to do so soon to beat the inevitable rush and avoid hefty
penalties. Pension providers are likely to be overwhelmed with enquiries and
many will not cater for the small business market. Business owners who fail to
provide a qualifying pension scheme could face a £400 fixed penalty from the
Pensions Regulator, escalating to daily fines set at a minimum of £50 per day,
with the possibility of civil penalties and Court action."