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Glasgow
+44 (0)141 221 2984

Edinburgh
+44 (0)131 225 6366

Stirling
+44 (0)1786 451745

Dumbarton
+44 (0)1389 765238

Hamilton
+44 (0)1698 459444

French Duncan

Workplace Pensions: The clock is ticking for SMEs

20 October 2014

Nearly 4.5 million people have now been automatically enrolled in a workplace pension, but the Pensions Regulator is worried about what happens next.


If you are an employer, the first fact you need to know about the auto-enrolment process for your business is your staging date - the date when you must have a suitable workplace pension arrangement in place, along with all the supporting administration.


Staging dates are determined firstly by your PAYE scheme size in April 2012 and secondly, from June 2015 onwards for employers with scheme sizes of less than 30, by PAYE reference numbers. The first staging date was 1 October 2012 and the last, for new employers between July and September 2017, does not occur until 2018. So far it has only been large and medium-sized (60 or more employees) firms who have reached their staging dates. As a result, the 4.5 million figure relates to fewer than 30,000 employers. In the next two years, as smaller employers reach their staging dates, the numbers of businesses enrolled (as opposed to employees) will soar.


Last month The Pensions Regulator (TPR) issued a warning to small businesses to check their staging dates. This was prompted by research undertaken by the regulator which showed that nearly one in five small employers (5-49 workers) did not know their staging date, while among micro employers (1-4 workers), almost half were unaware. Even those who claimed to be aware of their staging dates were not that knowledgeable: only 43% of small employers and 28% of micro employers had dates that matched TPR’s own records.


The regulator says that businesses should start planning for automatic enrolment a year before their staging date. Given the surge in numbers that is due in the final quarter of 2015/16, an earlier start may be wise to avoid the inevitable rush. If your business has done nothing about auto-enrolment yet, why not start talking to us now and, at a minimum, draw up a timetable for action?

If you would like any further information please email Peter Haveron or call us on 0141 221 2984.