As employers around Newcastle prepare for compulsory staff pension schemes under new legislation, a local accountancy specialist is launching a scheme designed specifically for small businesses.
David Ingram, who runs Tax-Assist Accountants in Gosforth, explained that it would soon be a legal requirement for all employers to automatically enrol eligible employees into a pension scheme and pay pension contributions.
He said: “We’ve had a lot of small business owners coming to us with concerns over the impact this legislation will have and looking to establish their own pension plan.
“In response we’ve teamed up with national independent financial advisers Independent Financial Services (IFS), and major pension providers Scottish Widows, to put together a pension scheme specifically for small businesses.”
Paul Baker, MD of IFS, added: “Many small businesses are recognising that by planning ahead, the cost of pension provision can be phased in. This makes the whole process easier and from a cash-flow perspective, much more manageable.”
The Pensions Regulator will police and enforce the new law, which means that qualifying employees will need to put 8% of their earnings into their pension pot, with at least 3% of that total contributed by their employer.
Employers with 49 employees or fewer could face a fixed fine of £400 plus additional daily penalties of up to £500 for failure to comply.
TaxAssist Accountants offers tax and accountancy services purely to small businesses across Newcastle, Gateshead, North Tyneside and Northumberland.