10% of firms sign up for auto-enrolment beyond their staging date
A growing number of UK businesses are leaving it to the very last minute to comply with their auto-enrolment obligations, according to a leading pensions provider.
Now Pensions revealed one-in-ten businesses that signed up for its services in the last quarter did so beyond their auto-enrolment staging date, while over a quarter (27 per cent) did so within just a month of their cut-off date.
This represents a small drop in the number of employers setting up a scheme after their staging date compared to the previous quarter, but it’s also a 50 per cent increase in the number of firms leaving it to the last minute.
Morten Nilsson, chief executive, Now Pensions, said: “A large proportion of employers are taking the regulator’s advice and planning well ahead for auto-enrolment but, a growing number are dragging their feet.
“Owners of smaller firms inevitably wear many hats and auto-enrolment can come low on the priority list.
“But, like it or not, auto-enrolment can’t be ignored and leaving it to the last minute inevitably results in more stress and more limited choice of pension providers.”
This data comes after The Pensions Regulator revealed 500,000 more small and micro employers would have to auto-enrol staff than it had previously anticipated.
Businesses don’t need to be caught out on auto-enrolment. To find out more, call TaxAssist Accountants today.
Last updated: 27th October 2015