The warning comes from the London Society of Chartered Accountants after its research revealed a third of SMEs did not offer their staff a pension scheme, nor did they intend to provide them access to the new stakeholder pension scheme.
In addition 37% of SMEs had no understanding of the rules and regulations of the new pension initiative.
The stakeholder pension scheme is a designed to help employees earning annual salaries between Pounds 10,000 to Pounds 20,000 who do not have access to a recognised pension scheme.
Under the new legislation, companies with five employees or more must provide staff access to a pension scheme, whether it be a stakeholder-compliant pension or a recognised alternative.
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel