It’s time for micro-employers to start gearing up for automatic enrolment of pensions and Uckfield-based financial adviser Stephen Palmer is warning against leaving it until the last minute before taking action.
Stephen, wealth management consultant at St James’s Place, said many ‘micro employers’ were unaware of their pension contribution obligations.
He believes the problem has partly been caused by the Government’s inability to change the language used in dealing with businesses to help them understand it.
Stephen said: “Government advertising has been effective at letting employees know about the process, but we believe that more needs to be done to educate employers, particularly those employing just one or two people.
“The language being used is still too complex and needs to be kept simple and jargon-free so that all can understand.”
Stephen added that if you employ anyone, even just one person and pay them at least £192 a week or £833 a month, you will need to comply with automatic enrolment rules.
Failure to follow the rules could lead to a £400 fine. Continued failure to comply has already resulted in daily fines of between £50 and £10,000 depending on the severity of the breach.
“There is a real danger of many people leaving it until the last minute before taking action,” said Stephen.
“Micro employers should start preparing for automatic-enrolment now and be seeking professional advice in good time if they are unsure of their new responsibilities.”
To receive a complimentary guide covering Wealth Management, Retirement planning or Inheritance Tax planning, please contact Stephen Palmer at Cranwell Wealth Solutions in Uckfield East Sussex, on 01959 500449 or email Stephen.email@example.com. www.cranwellws.co.uk