Pensions  

TPR: Small businesses will seek auto-enrolment help

TPR: Small businesses will seek auto-enrolment help

All small and micro businesses will receive letters from The Pensions Regulator in the coming months as part of a new campaign to give them information on automatic enrolment.

Advisers have been warned to expect a large number of enquiries on automatic enrolment in the coming months.

More than 1.5m addresses will receive the letters from the end of January to make sure they all know the date when they need to be ready to meet their automatic enrolment requirements. However, this mailshot will include sole traders and one-man-band entrepreneurs, who have no employers and therefore no need to comply with auto-enrolment obligations.

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Auto-enrolment rollout started in October 2012 with the largest companies and is expected to be completed at all the estimated 1.3m businesses by 2018.

More than 43,000 large businesses have already complied with auto-enrolment and the rest are now being targeted by The Pensions Regulator.

Charles Counsell, executive director of automatic enrolment at The Pensions Regulator, said: “Automatic enrolment affects every employer in the UK and they need to take timely action to get ready.

“We know from our own research that more than 1m employers will be seeking help on automatic enrolment.

“Our message for advisers is clear: be prepared for clients to approach you about automatic enrolment.”

Adviser view

Christopher Mayes, a partner in Berkshire-based Boyett Mayes & Associates, said: “We expect some demand.

“Many small businesses haven’t engaged terribly well with the requirements and are not planning for them.

“They are not the prime market that advisers who specialise in this area have targeted and they probably don’t want the additional expense.”