Partner Article

Yorkshire organisations ready for top business challenge

Yorkshire accountants met in Doncaster last week to discuss the new employer obligation for funding employees’ pensions - the biggest change in pensions for over a hundred years. This comes as adhering to regulatory requirements and changes is considered to be the top challenge for organisations in the UK, according to information released from the third quarter CGMA Global Economic Forecast by the Chartered Institute of Management Accountants and the American Institute of CPAs

The Q3 CGMA Global Economic Forecast which included responses from nearly 350 UK companies identified the top challenge to UK organisations as adhering to regulatory requirements and changes. The biggest change in pension regulations for over a hundred years – automatic enrolment – started on 1st October where employers are now required by law to pay into a workplace pension for staff who do not opt out. By the end of the year, around 600,000 more people in the UK will be saving into a workplace pension and by May 2015 about 4.3 million people will be saving for their old age. The event at the Best Western Premier Mount Pleasant Hotel, Great North Road in Doncaster on the 9th October, guided local businesses through the new obligations placed on directors and proprietors, compelling them to fund employees’ pensions.

Gary Thickett, ACMA, CGMA, CIMA Area Chair for the Yorkshire region, says: “These new regulatory requirements means Yorkshire’s employers must be prepared for a minimum level of contributions to their employees pensions which will build to a total of 8% of a band of earnings by October 2018 (employer at 3%, employee at 4%, and tax relief at 1% combined). This event will be helping accountants ensure their businesses are able to plan and implement these new changes according to the latest regulations. “

The Q3 CGMA Global Economic Forecast also found that although only 9% of UK respondents are optimistic about the global economy and 13% optimistic about the domestic economy, 45% of UK respondents are now currently optimistic about prospects for own company, up from 38% in 1Q. UK revenue and profit projections are all slightly improved from 2Q 2012, although headcount increased to only 0.5%. Less than one-third of the UK respondents (29%) are concerned about inflation, but a quarter now consider energy costs as representing a significant risk to their business.

This was posted in Bdaily's Members' News section by CIMA UK Regional News .