Member Article

Accountancy specialist introduces pension scheme for small businesses

As employers across Yorkshire prepare for compulsory staff pension schemes under new legislation, a Huddersfield small business tax and accountancy firm is launching a scheme designed specifically for small businesses.

Nick Brook, who runs TaxAssist Accountants, reports that the move is in anticipation of upcoming legislation.

He said: “For small companies, the statutory requirement for all employers to automatically enrol eligible employees into a pension scheme and pay pension contributions is being phased in over the next few years. However, we’ve had a lot of small business owners coming to us with concerns over the impact these regulations will have and looking to establish their own pension plan.

“As such, we’ve teamed up with national independent financial advisors, Independent Financial Services Ltd (IFS) and major pension providers, Scottish Widows, to put together a pension scheme specifically for smaller employers.”

Paul Baker, managing director of IFS, added: “Many small companies are realising that by planning ahead, the cost of pension provision can be phased in. This makes the whole process easier and, from a cash-flow perspective, much more manageable. We’ve devised this scheme to minimise the administrative burden on hard-pressed small business owners, making it as easy to set up and run as possible, with full compliance assistance and ongoing support available.”

The Pensions Regulator will police and enforce the new law, which means that qualifying employees will need to put 8% of their earnings into their pension pot, with at least 3% of that total contributed by their employer. Employers with 49 employees or less could face a fixed fine of £400 plus additional daily penalties of up to £500 for failure to comply.

TaxAssist is a specialist service provider to small businesses only.

This was posted in Bdaily's Members' News section by David Gatehouse .