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Practices struggling with auto enrollment costs

Practices have observed a substantial rise in costs as a result of auto-enrolment. Many have expressed concern that clients will fail to comply with deadlines, says a new survey from Sage/Accountancy Age.

A sizeable 61% of the 180 practitioners who took part in the survey said that their clients had revealed that they were not auto-enrolment ready. Around four out of ten (39.4%) admitted that the cost of their practice had risen substantially in their preparation for auto-enrollment. They cited irrecoverable time, client preparation, admin and staff time, and processing as the key reasons behind the difficulties.

Further, eight in ten businesses (83.5%) claimed that they had confidence in their preparation procedure in dealing with auto-enrolment. However, they also emphasised a number of related issues they are having to deal with.

Close to half do not feel confident in choosing the right pension provider for their clients, with one out of ten uncertain in adhering to their own schedule in managing auto-enrolment on behalf of their clients.

Sage’s Sean Kemple said:

“It’s vital that the UK’s practice community considers its communication with clients. Practitioners must also discuss the auto-enrolment implications with their software and payroll providers. We want accountants to have efficient and reliable processes in place that illustrate their value – while providing certainty to their clients.”

All businesses need to comply with HMRC demands in one way or another. Local businesses or tradespeople struggling to keep up with the latest rules and required practices should refer to an accountant in the Wirral if they want to feel confident that they are adhering to regulations.

Posted by Mark
October 26, 2016
Finance

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