The Pensions Regulator to send 1.5 million letters
Are you staging in 2016? If so, you should be on the lookout for a letter from The Pensions Regulator (TPR).
The Pensions Regulator are increasing the amount of communications that they are sending out from the end of January to those employers set to stage in 2016. This is in an effort to educate those employers who may not necessarily be fully prepared for auto enrolment by making them aware of their staging date (the date that they need to meet their auto enrolment duties) by summer 2015.
Auto enrolment was brought in by the government in 2012 to ensure that as a society, we were appropriately preparing for life after work. This means that by law, employers must now auto enrol their employees into qualifying pension schemes (provided that they meet the sufficient criteria).
TPR found from research that a large number of small and micro businesses are still unaware of their staging date and the letter that they will send out to the 1.5 million businesses set to stage after May 2016 will educate those employers of this information.
TPR hope that writing to small and micro employers over the next three years will help to better prepare those businesses as they approach their staging dates. Avoiding non-compliance is extremely important for smaller businesses as they are less likely to be able to afford the fines. From the beginning, TPR suggested that businesses should start preparing for their staging date 12 months beforehand to allow the appropriate amount of time to achieve compliance.
TPR research states that around 1 million businesses will be seeking help with their auto enrolment. This means that the sooner you have your auto enrolment process in place, the more likely you are to comply comfortably and miss out on fines. As an accountant, you should be prepared for questions from your clients about auto enrolment and advise them that they should be expecting a letter from TPR.
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