SMEs face fines over pension rules
A third of small to medium-sized companies face fines of up to £50,000 because they do not understand pension rules due to be introduced in three months time.
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.
Links
Tax rules for new pensions released
Companies wrong over stakeholder rules
Darling unveils stakeholder pension tax rules
Stakeholder pensions – a guide for employers