First employer prosecuted for wilful non-compliance

The Pensions regulator has published details of a recent case, where a company and its director has been prosecuted for deliberately avoiding their Automatic Enrolment duties.

They are accused of deliberately not putting 36 of their staff into a workplace pension. The company has been summoned to appear in court in October 2017, Where they will face eight charges of wilfully failing to comply with the company’s duties.

A fixed penalty notice may be issued by The Pensions Regulator if you don’t comply with statutory notices. This is fixed at £400 and payable within a specific period. They can sometimes issue a fixed penalty without having first issued a statutory notice.

They can also issue an escalating penalty notice for failure to comply with a statutory notice. This penalty has a prescribed rate of £50 to £10,000 per day depending on the number of staff your client has.

They can also issue a civil penalty for cases where you fail to pay contributions that are due. This is a financial penalty of up to £5,000 for individuals and up to £50,000 for organisations.

Here at Mr Tax we provide pensions set-up and full Auto-Enrolment to ensure compliance and legal obligations are met.

Please click here to visit our page regarding Automatic enrolment, if you have any further questions regarding this please feel free to call us on 0116 264 2585.

There is also lots of help and advice on the Pension Regulator’s website.