Small and medium-sized enterprises will face increased costs and a higher burden of administration due to the Government’s pension reforms, warns the Association of Chartered Certified Accountants.
It says the Government needs to reduce burdens on employers generally. The rules on automatic re-enrolment and employer registration are areas where Acca believes there is scope for simplicity. It is concerned that firms will level down existing schemes due to the phasing in of minimum employer contributions.
Head of business law John Davies says: “Small businesses in particular still face substantial burdens. However, staggering the pension reforms for SMEs between 2012 and 2016 is a sensible idea and will enable SMEs to learn lessons from the experience of larger firms.”