Small firms not prepared for pension change

Chris Papadopoullos
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SMALL businesses will struggle with the cost of the government’s auto-enrolment pension scheme, new survey figures reveal.

The scheme requires both employer and employee to pay into a savings pot with tax breaks. But more than one in three firms with less than 10 employees said they would have to cap salaries or bonuses as a result, according to accounting software firm Intuit.

Many small firms also underestimated the average time it takes to set up the scheme and its total cost. The cost to small firms is estimated to reach £8,900.

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