Auto Enrolment – There is nowhere to hide
The Pension Regulator published the following key figures this month:
- 2,782 enforcement cases have been opened and closed since the start of auto-enrolment
- 1,502 of these were in the past six months
Their enforcement actions have shot up over the past six months, highlighting the need for small businesses to seek specialist advice.
In the six months between 1st October 2014 and 31st March 2015 TPR issued 364 fixed penalty notices to employers who failed to comply with their legal duties. Prior to this the regulator had only issued three £400 fines over the whole auto-enrolment roll-out, which started in October 2012.
There has also been an increase in the use of compliance notices – before October 2014 only 177 were issued, but by 31 March 2015 1,529 had been issued. A compliance notice gives the power to remedy a contravention of one or more auto enrolment rules made by an employer.
The Pensions Regulator has said: “Our research shows that eight in 10 smaller medium and small employers have consulted an adviser to help them comply with their duties, or will do so. Employers who choose to use an adviser, for example an IFA, accountant or bookkeeper, should understand exactly what help they are being offered – whether it’s simply information or a full automatic-enrolment service. Both parties should also be clear who is taking responsibility for completing each task.”
The regulator recommends planning for auto enrolment 12 months ahead of an employer’s staging date.
Auto-enrolment is expected to be complete for all existing companies by April 2017.
Here at Leonherman we have run a number of auto enrolment seminars in conjunction with our recommended pension’s advisor Simply Auto Enrolment, we will be hosting our final seminar before the seminar on Tuesday 23rd June.
Get in touch if you would like to attend this free seminar or to find out more