Becoming a business owner certainly has its advantages: take having greater control over your working day, coupled with the feeling that you’ve built something of your own – for many it’s all that’s needed to give up the life of an employee and become their own boss. But, running a business comes with some unavoidable responsibilities and legislative red tape. One of the biggest challenges facing small firms this year is workplace pension legislation – otherwise known as auto enrolment.
Under the Pensions Act in 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This affects every business large and small – within every industry. So whether you’re a hairdresser, an architect or personal care assistant, auto enrolment will affect you. Every firm has a date – known as a staging date – when their duties come into effect. For many small businesses (those with fewer than 50 employees) their staging dates will be between now and 2017. The key to effective auto enrolment staging is to be as prepared as possible, so you’re not panicking at the last minute. Failure to comply does come with its consequences, including fines from the regulator of up to £500 per day for smaller sized businesses. So it’s high time to make sure you’re ready and then it’s one less thing to think about!