BUSINESS owners in the Cotswolds are being urged to act soon to set up a pension scheme for their staff or face potential hefty penalties.

Roger Mills, manager of TaxAssist Accountants in Bourton-on-the-Water, said: “For many local business owners the new requirement to have a workplace pension scheme in place comes into force this year and they will have received notices from the Pensions Regulator giving their staging date.

“From that date, they must automatically enrol all eligible employees into the scheme and contribute to their pension pot.

“We’ve been advising local businesses since the pension changes were first introduced four years ago and many business owners have planned well in advance, but we’re urging those who haven’t yet put a scheme in place for their staff, to do so soon to avoid hefty penalties.

“Business owners who fail to provide a qualifying pension scheme could face a £400 fixed penalty from the Pensions Regulator, escalating to daily fines set at a minimum of £50 per day, with the possibility of civil penalties and court action.

“With over half a million small businesses reaching their staging date this year, pension providers are likely to be overwhelmed with enquiries and many will not cater for the small business market. We’re urging local business owners to ensure they don’t get left behind.”

Over 5.47 million people have been enrolled into workplace pension schemes across over 60,000 employers in the UK since auto-enrolment was introduced in 2012.

TaxAssist Accountants in Bourton-on-the-Water is a local business, operating throughout the North Cotswolds, providing tax and accountancy advice and services purely to small businesses.