Tax­ing call for firms to be on alert

Ayrshire Post - - BUSINESS -

Busi­ness own­ers should pre­pare for spot checks on their staff pen­sion schemes, a lo­cal tax spe­cial­ist has warned.

Mike Wood, who runs TaxAs­sist Ac­coun­tants in Ayr, has is­sued the stark call to com­pa­nies across Ayr­shire.

He said: “Spot checks are be­ing car­ried out across the coun­try by the Pen­sions Reg­u­la­tor to en­sure that em­ploy­ers are com­ply­ing with the new rules on work­place pen­sions.

“Lo­cal busi­ness own­ers need to pre­pare for the short- no­tice in­spec­tions, which will check whether they are au­to­mat­i­cally en­rolling qual­i­fy­ing staff in a com­pany pen­sion scheme and con­tribut­ing to their pen­sion pot.

“Every month, the Reg­u­la­tor is an­nounc­ing a clampdown on new towns and cities, with spot checks al­ready car­ried out in London, the North West, Mid­lands, York­shire and Scot­land.

“We’re ad­vis­ing many lo­cal busi­nesses, which have now re­ceived no­tices from the Pen­sions Reg­u­la­tor giv­ing the date from which they must com­ply with au­to­matic en­rol­ment.”

And he added: “Many have planned well in ad­vance and have fully com­pli­ant pen­sion schemes up and run­ning al­ready.

“But for those em­ploy­ers who are yet to com­ply with the new rules, there is the prospect of a £ 400 fixed penalty es­ca­lat­ing to daily fines set at a min­i­mum of £ 50 per day.

“Those fines in­crease to £ 500 per day if they have over five em­ploy­ees.

“And they can reach a max­i­mum of £ 10,000 per day if they have 500 or more em­ploy­ees, with the pos­si­bil­ity of civil penal­ties and court ac­tion.”

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