New Forest

Smallest firms hit by higher pension costs

Startups and the smallest businesses are having to absorb higher pension costs as the new tax year gets under way.

The Federation of Small Businesses (FSB) warned that the doubling of minimum employer contributions into workplace pensions from 6 April 2018 will “hit the very smallest firms and startups the hardest”.

Firms in labour-intensive industries – such as retail, childcare and construction – will reportedly feel the impact most acutely.

The FSB claims these sectors are already beset by high inflation and skills shortages, with further auto-enrolment increases due to come into force next year.

From 6 April 2019, employer contributions will rise to 3% and the total amount going into workplace pensions is expected to pass £17 billion around the same time.

For further information on Auto Enrolment, please contact James Alesbury on 023 8046 1222.

Latest Tweets

Don't forget to get your best festive one-liners in by Friday 21st December at 1pm to be in for a chance to win https://t.co/IK9Joavxzo #hohohohwb

What did Father Christmas say to Mother Christmas when he looked out out the window?...
Looks like Reindeer!
Thank you to everyone who had submitted their jokes so far. To enter visit https://t.co/IK9Joavxzo #hwbhohoho

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.