Sign up for NHBF pension during August to save money and beat ‘capacity crunch’, says NHBF

Salons are being urged to avoid an unexpected autumn 'pensions capacity crunch' by registering to join the NHBF's salon-specific pension scheme before 1 September.

Getting in ahead of the rush will also mean salons will benefit from lower set-up and governance fees, as the pension scheme's prices are set to rise from next month.

Hair and beauty businesses are guaranteed acceptance onto the NHBF's pension scheme, which has been put in place specifically to help salons cope with the arrival of pensions auto-enrolment, which makes all businesses, however small, legally responsible for setting up and paying into a workplace pension for their employees.

Pensions auto-enrolment started with the UK's biggest companies back in 2012, and most smaller companies are now set to "stage" (the date from which they need to begin offering a pension) during this year 2017.

An analysis by The Pensions Regulator has predicted there will as a result be a rush of small and micro businesses all racing to get pension schemes in place during the second half of this year. The NHBF's own evidence is there will be a similar "bulge" of salons reaching or fast-approaching their staging date from October onwards.

Combined with the fact the scheme's fees will be rising from September, August is therefore the perfect time to get ahead of the crowd and register to join the NHBF pension scheme, said NHBF chief executive Hilary Hall.

"Beyond the scheme itself, we have helpful guides and events explaining what auto-enrolment is all about, a step-by-step guide to what employers have to do once they've registered as well as online support, including videos," she explained.

The set-up fee for the NHBF scheme is currently £295 plus VAT for members (£395 plus VAT for non-member). But from 1 September this will rise to £399 plus VAT and £499 plus VAT respectively.

On top of this initial fee, there is an annual "governance" fee, although this does no come into effect until the salon has reached its staging date. Currently £65 plus VAT for members and £105 plus VAT for non-members, the new fee from 1 September will be £115 plus VAT and £165 plus VAT respectively.

"Pensions auto-enrolment is compulsory for all businesses, and salons are increasingly recognising this is not just something they have to do, but the right thing to do in terms of encouraging their employees to begin saving for their retirement, however far off that may seem," said Hilary.

"The NHBF pension scheme is easy to set up, and help is provided at every step. But it is important salons don't delay, as you can be fined if you are not offering a pension scheme when you should be. Even if you only have one staff member or even if your employees have said they want to opt our of a pension, you still have to offer a scheme," she added.