E-filing pension administration has come into force. All pension scheme administrators are now obliged to submit an array of information electronically. Submissions required include accounting for tax returns, applications to register a scheme, and event reports.

The FSB believes that, "Many small businesses responsible for pension administration still work via postal and fax systems. They should not be forced into making costly changes to working practices and equipment simply to make the life of some civil servants easier."

Mike Cherry, FSB Financial Affairs Chairman, said, "Making electronic filing compulsory is going to add to the burden already faced by small business owners. It is always good to have new options, but this is a not an option, just another compulsory requirement from Government, in an ever-lengthening list that they have to follow.

"Business owners are not going to be encouraged to grow, or indeed have the time to dedicate to growth, when they are spending too much of their time having to conform to more red tape."

Business Forum Comment

While the FSB has a good point in the inappropriateness of forcing small businesses to modernise it is possibly missing the point that e-filing will ultimately make life easier for the small businesses.

Perhaps the Government's approach should be to lead more with the carrot rather than the stick and offer a financial incentive for e-filing rather as it did with the filing of company accounts when they first went online.