Oct
28
2010
Contractors 'could face difficulties in auto-enrolment pension schemes'
Posted by Daniel Frost
Those with umbrella companies who work in small businesses may find it tough when auto-enrolment pension schemes are implemented from 2012.
Robin Ellison, a partner at Pinsent Masons, has pointed out that he does not believe that auto-enrolment is an unreasonable policy, saying that, before the conservative government made it very difficult, many companies saw it as a standard method of pension plan membership.
However, he said that the new rules will make it difficult for contractors who are on modest incomes, as well as delivering "additional hardship" to others who are placed into this scheme.
Mr Ellison added: "Small businesses (and some big business in fact, especially in construction, where margins are very tight) may find it difficult to find an additional three per cent especially in current circumstances."
The comments follow on from the Department for Work and Pensions announcement that saving for millions will be driven through the National Employment Savings Trust (NEST), which is set to be introduced next year.
Those with umbrella companies who work in small businesses may find it tough when auto-enrolment pension schemes are implemented from 2012.
Robin Ellison, a partner at Pinsent Masons, has pointed out that he does not believe that auto-enrolment is an unreasonable policy, saying that, before the conservative government made it very difficult, many companies saw it as a standard method of pension plan membership.
However, he said that the new rules will make it difficult for contractors who are on modest incomes, as well as delivering "additional hardship" to others who are placed into this scheme.
Mr Ellison added: "Small businesses (and some big business in fact, especially in construction, where margins are very tight) may find it difficult to find an additional three per cent especially in current circumstances."
The comments follow on from the Department for Work and Pensions announcement that saving for millions will be driven through the National Employment Savings Trust (NEST), which is set to be introduced next year.