The Pensions Regulator Has Teeth! Big Teeth!
It may seem boring but it's very important ...
POSTED BY JONATHAN VOWLES ON 27/08/2019 @ 8:00AM
The Pensions Regulator has been promoting Workplace Pensions for a few years now. The rule is simple, if you have employees you need to have a workplace pension ...
If you're worried The Pensions Regulator may investigate you then get in touch!
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And you automatically have to include all of your employees in it. Like a lot of regulation, this isn't a one-off activity, but something that you need to check and keep up to date. So, why do employers get it wrong?
"Like a lot of regulators, The Pensions Regulator gets tough on non-compliance!"
Don't think it won't be you, as they carry out country-wide spot-check inspections. The Pensions Regulator targets business where data and intelligence teams identify a risk of noncompliance. As a result, 74% of spot checks revealed breaches of pensions legislation, with 76% of these resulting in enforcement action.
What's more, you can't get around the rules by trying to hide, The Pensions Regulator is looking for those employers trying to hide their non-compliance with the law by opening new businesses, transferring their workforce across and then dissolving the original businesses.
There have been some eye-watering fines as well. One company was charged a £400 penalty, which they ignored ... and ended up with a £350,000 one instead! They also had to re-enrol over 40 staff and pay £100,000 of backdated pension contributions!
You might think it will never be you, but in the first half of 2019, they issued over 6,700 fixed penalty notices worth £400 each and over 2,500 escalating penalty notices ... and nearly 7,000 unpaid contribution notices.
The average escalating penalty notice was £5,000, and before you think "it'll never be me", businesses getting a £5k fine included a family-run cafe, a pre-school nursery and an accountant! Since the beginning of auto-enrolment, around 20% of all employers have been fined by The Pensions Regulator.
"Would you like to know more?"
If you aren't sure if you are getting your Workplace Pension right and don't want to fall foul of The Pensions Regulator then do give me a call on 01234 752 566 or click here to ping me an email and let us bring you peace of mind as well as simple and easy compliance with the rules.
Until next time ...
More about Jonathan Vowles ...
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas, which can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.
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