Four in five businesses in Kent will struggle to put in place pension changes because the reforms are too complicated, according to new research.

The new auto-enrolment system, which requires employers to put all eligable staff on a workplace pension scheme, will lead to many firms suffering eye-watering penalties said the Federation of Small Businesses, which revealed the findings.

The organisation has been running briefings in Kent to help firms comply with the new rules, which are being rolled out over the next few years.

The drama goes back to the passing of the Pensions Act 2008, which stated every business in the UK must have a workplace pension in place for its employees by 2018. The measure has been dubbed auto-enrolment.

All workers aged between 22 and the state pension age who earn at least £10,000 a year and work in the UK must be enrolled.

All employers must then contribute at least 1% to the pension scheme for those workers if it goes live before October 2017, rising after that.

Penalties for non-compliance begin at £400, with charges rising every day a firm does not have the correct system in place.

For information on auto enrolment seminars run by the FSB call 01622 754 508.