HEFTY fines could be imposed on small businesses in Trafford that fail to meet a government pension compliance deadline.

As from June 2015, the mandatory government scheme, will target firms employing fewer than 50 staff.

However, due to the complex nature of the new regulations it takes a minimum of around six months for businesses to be set up.

The regional chairman of the Federation of Small Businesses Richard Gregg said: “This means that small firms have to act now, the time for dithering is over.

“Effectively, businesses that haven’t started the process by December could well be hit with a fine come June, which can be as much as £500 for everyday of non-compliance.

“Well over a million businesses will have a staging date between 2016 and 2018. This tsunami could well cause havoc for those who have not prepared, so our advice is simply don’t wait, this is not something that’s going away.”

Added Gregg: “For most small firms, being told to go away and set up a pension scheme will sound a daunting and onerous task. They’ll just want someone to take the headache away, and not pay too much for it. The good news is that there are specialists out there who can help."

Any business seeking further information about the implications can contact the FSB business helpline on: 0808 100 1613.