smallbusiness.co.uk: Helping your business think big

Short-term finance

Rory Earley, CEO of Capital for Enterprise, explores the options...
Have your say »

RSS

SMEs not planning for pension reform

Apr 26 2011

Businesses are not preparing well enough for pension changes

More than three quarters of small businesses have yet to put plans in place to deal with the impact of compulsory employer pension contributions, research finds.

A study of 300 businesses by BBS Consultants & Actuaries shows that employers are unprepared for the new legislation with 87 per cent of respondents reporting they had yet to agree their policies on dealing with the measures.

Two thirds have also failed to adjust their remuneration strategies for executives in light of pension tax relief changes, with less than a third using salary exchange as a way of mitigating National Insurance costs.

Compulsory employer pension contributions are a new requirement applying to all UK businesses regardless of size or turnover, which the government hopes will encourage more workers to save for retirement.

James Stanfield, director at BBS Consultants & Actuaries says, ‘Make no mistake, every SME business will have to offer its employees the chance to join a pension scheme and will also have to pay compulsory employer pension contributions. The longer employers leave it the worse the impact could be for them.’

Comments

There are currently no comments on this article

Fixed fee banking puts you in control

Our simple fixed fee banking means you’ll always know where you stand. It’s just one of the reasons why we’ve been named Moneyfacts Best Business Current Account provider for the 10th year running. Find out more.

Barclays Business Start Up Account

Get everything you'd expect from a Barclays Business account…Free business banking for up to 2 years (Ts&Cs apply). Free day-to-day support from our Barclays Business Team by phone 24/7 and Mobile Banking, manage your account quickly and easily from a web-enabled phone. Apply online.

Make business more rewarding with up to 3% cashback on your Barclaycard business credit card spend

Reward those unavoidable costs you already face every day in your business. Things like office supplies & stationery, legal and accounting services, computer equipment and support. Plus get 0% interest on purchases for 3 months from account opening. Terms & conditions apply. Find out more.

Polls

Latest News

Revenue falls represent more choppy waters for small businesses to navigate

SME revenue fall a ‘blip’

Small business domestic turnover decreased by 7 per cent between Q4 2011 and Q1 2012, research finds.

SMEs could be in line for tax rebate

Hundreds of thousands of UK small business owners are due a sizeable tax rebate from HMRC, according to a tax specialist.

Wonga enters business loan market

Short-term loan provider Wonga is set to launch a business loan service, which wlll reportedly make funds available within 15 minutes of an application.

SMEs fear postal rate change

Four in five UK small and medium-sized businesses believe that today’s postal rate change will have a negative impact on their company.

SME credit management falls short

Few companies use formal procedures to tackle the problem of late payment, a survey finds.

SMEs committed to keeping staff

One in 20 small business owners have remortgaged their own homes to free up money to pay wages and retain employees.

Recovery depends on investment

The UK won’t begin to prosper until cash stockpiled by corporates is put back into the economy, says a senior economic advisor at Ernst & Young.

HMRC criticised for IT disruption

HMRC’s decision to shut down its entire IT systems for nearly a week, just days before the end of the current tax year, has been criticised by the Forum of Private Business.

Stamp price changes 'bad for business'

Small businesses will be hit with significant increases in the cost of postal services after an Ofcom announcement allowing Royal Mail bosses to set stamp prices themselves.

Budget 2012: Tax admin simplified for small businesses

Small companies will be taxed on the amount of cash passing through their businesses rather than through more complicated methods used for large companies.

Budget 2012: Patent box praised by SMEs

Patent legislation announced in the Budget has been hailed as ‘key to ensuring manufacturing continues in the UK’.

Guides & Tips

Watching an investment blossom as a business angel can be hugely rewarding

Becoming an angel investor

Becoming a business angel can be hugely rewarding, personally and financially, but it’s not as easy as they make it look on the TV.

Business angels have billions to spend on smaller companies

Angel delight

Angel investors are fast becoming the only funding option for early-stage companies. SmallBusiness.co.uk investigates.

Tax savings and working from home

Working from home can be very tax efficient for small businesses, says Paul Webb, tax partner at RJP.

Don't Miss

Making sound investments in volatile times

After the recent global economic problems, it’s never been more important to choose your offshore investments carefully.

Tax dilemmas

Every small business should make their business tax as efficient as possible, this guide will help ensure you’re not paying HMRC too much.

Emergency Budget Breakdown

It's generally agreed that SMEs emerged largely unscathed from the Emergency Budget. Here SmallBusiness.co.uk picks out the main points for owner-managers.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.