Small businesses warned about pensions rules (From Western Telegraph)

Small businesses warned about pensions rules

Thousands of small businesses in Pembrokeshire may face massive fines if they do not take steps to provide a stakeholder pension plan for their employees by October 8th.

The new rules apply to any employer who has five or more employees. Recent figures suggest that less than a quarter of small businesses nationwide have made any preparations.

The Department of Work and Pensions has sent out reminders to 400,000 small businesses throughout the country.

A spokesman for the Federation of Small Businesses (FSB) said: There is a general lack of uptake across the country. Penalties for failing to provide such a scheme include a maximum fine of £5,000 per violation (thats per employee) and also up to two years in prison.

The spokesman continued: Because it is a new and unique piece of legislation, the Government wont be too stringent. People found breaking the rules will probably be given a warning and a period to get themselves in order.

Steven Cole, from the Pembrokeshire branch of the FSB, said: People in Pembrokeshire either dont know about the change in the law or dont think it applies to them.

The advice from the FSB to small business owners is to contact their accountant and seek advice there. For those without an accountant, information is available on the Department of Work website at www.dss.gov.uk. The FSB can be contacted at www.fsb.org.uk or on (01253) 336000.