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23 Sep 2013

CEBR: Auto Enrolment To Cost Businesses Between £8,900 And £28,300

Small and medium-sized businesses in the UK will have to put aside up to £28,300 for covering costs related to automatic enrolment, according to a new analysis by the Centre for Economics and Business Research (CEBR).

For the smallest firms, average costs stand at £8,900, while businesses with up to 100 workers will have to pay an average of £12,600. Companies employing up to 250 people should be prepared to pay £15,600.

The sum grows further in line with the size of the business, reaching £23,300 for those with staff of 500, CEBR estimated. Firms based in London will face higher bills than those located elsewhere, which means that costs will reach £28,300 for the largest businesses in the capital.

In addition, compliance with the auto-enrolment scheme could take up to 103 man days. This figure includes paperwork related to a total of 33 different administrative tasks that businesses will have to complete in order to be fully compliant with the new regulation. CEBR noted that paperwork does not end with the implementation of auto-enrolment but will be a continuous process, taking up to three days per month.

As automatic enrolment approaches the start of its next phase, in which smaller companies will be gradually joining the scheme, experts advise businesses to start planning well in advance to make sure they are ready to comply with regulation when their turn comes. Those who fail to comply will be penalised with substantial fines, the Daily Telegraph noted.

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