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Most few small business owners don’t know of the pension auto-enrolment despite the looming deadline.

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Most few small business owners don’t know of the pension auto-enrolment despite the looming deadline.

According to the recent data, more than 2,300 small businesses owners in the UK did not know what auto-enrolment is all about, and few of them said that the extra charges would reduce the rate of employing new staffs. Auto-enrolment will be compulsory for all business by next year, and business owners will need to contribute to their staff’s pensions except if they agree to opt out.

A survey that involved over 2,200 British small businesses has revealed that more than 30% are unaware of the auto-enrolment while more than 40% of respondents answered that the cost of contributing to workers pensions would have a negative influence on hiring new staff.

A local online service Bidvine conducted the national survey, and they asked some questions from the registered small business owners on the auto-enrolment.

The new legislation will allow every business in the UK to contribute to their staff’s pensions in February 2018. All workers will be enrolled automatically in their pension scheme and unless they wish to opt out.  Lack of cooperation to this term will result in fines and imprisonment for directors and business owners.

When the business owners are asked if they will comply with the pension auto-enrolment, more than 35% of the respondents didn’t know much about the auto-enrolment. But 33% answered was no.

More than 43% of respondents responds was that the high cost of contributing to the staff’s pensions would affect hiring new workers and 62% assumed that most of their staffs are ready to ‘opt-in.’

Bidvine.com interrogates some respondents if they think there were adequate support and information for small-scale businesses concerning auto-enrolment. But 65% replied was no, compared to the 35% that said yes.

66% of respondents are not aware of the deadline date for auto-enrolment compared to the 34% that are aware.

When asked if they will accept with auto-enrolment being obligatory, more than 43% replies yes and 31% think it should not be compulsory because it will affect their employee’s pension.

The business population, when it started to pay employees, will affect if the government makes it automatic enrolment. But the deadline for most of the businesses is February 1st, 2018.

Co-founder Bidvine.com, Russ Morgan said,

“We wanted to get enough information to what small business owners think about the auto-enrolment policy on how it will affect employers in the UK. Fortunately, we were overwhelmed to find out that a lot of them didn’t know what it is!

“We were happy to discover that majority of business owners will accept the auto-enrolment. However, it is frustrating that 43% disagreed because of the additional expenses of hiring new staffs. This is something that the government should consider in the future due to its effect on employment.”

 

 

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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