BikeBiz Bicycle and cycling retail news
The first wave of fines have hit employers failing to comply with new pension regulations. £400 fixed penalties have been handed out as well as 163 compliance notices that give employers a fixed deadline to comply with the regulations.
So far it is believed that no cycle businesses have been hit with penalties.
The fines are being issued by the Pensions Regulator following the rolling out of the new law that forces all employers to provide workers with an ‘automatic enrolment’ workplace pension scheme.
Despite warning bike businesses over the last three years that the regulations are coming into force, ActSmart is concerned that some companies who have not planned ahead are in danger of being hit with a fine.
ActSmart’s Tony Jones told BikeBiz: “We have been making SME businesses aware of the changes for three years.
“I personally have grave concerns that the number of employers being fined for non-compliance as a result of poor planning, will increase significantly over the coming 12 months.
“The Pensions Regulator estimates that 1.25m businesses are due to implement their own auto-enrolment scheme during the next three years, the culmination of an average planning process in excess of 18 months. We have been encouraging businesses to understand their obligations – and the effect on multiple elements of their business including finance, administration and payroll – early to avoid suffering potentially damaging daily fines.”
Charles Counsell, The Pension Regulator’s executive director for automatic enrolment, said: “As we deal with smaller employers, we will see more who, despite our message to prepare early, leave it too late or do not comply at all. This type of non-compliance is not acceptable.”
ActSmart has partnered with Copthorne Hundred Wealth Management, a Partner Practice of St. James’s Place Wealth Management to help bike businesses manage the move.
Jones added: “They are one of the leading wealth management organisations in the UK with a national network of advisers. They offer businesses and individuals a wealth management service, incorporating pension advice. The advice is face-to-face and tailored to the business or personal objectives.”
