Business clinic: Don't forget the ongoing admin of auto enrolment

During 2014 there will be an increase in the number of employers reaching their staging dates, but I have started to see pension providers being more selective about taking on new schemes.

This is because companies with fewer employees, or those with lower paid employees, will not be profitable for providers.

Whilst NEST has been designed as an auto enrolment solution, unlike other providers, it provides no administrative support. You will therefore have to manage the scheme online with no support in complying with the regulations (other than some templates and a manual) and no help with budgeting for the costs or advice on the right contribution structure.

Auto enrolment is not simply ‘setting up as a pension scheme’ – it has complex detailed regulations. So whilst ignoring it until the last minute may seem like a good idea, you do not want to find yourself with no time, little choice of pension provider and potentially limited access to independent financial advice as demand for solutions increases. I understand that it can be difficult to find the time when running your business on a day to day basis, but I do strongly recommend that you plan ahead. Whether you decide to ‘go it alone’ or seek professional advice I suggest that you begin six to 12 months before your staging date.