Businesses that fail to comply with auto-enrolment rules could be caught out as The Pensions Regulator (TPR) continues its campaign of spot-checks this summer.
New rates for auto-enrolment came into force in April this year, meaning that businesses must ensure that a total minimum contribution of 8% is reached for each employee.
As part of the crackdown, data sent to HMRC will be checked to ensure that all eligible staff are auto-enrolled and that the correct level of contributions are being made.
Under the Pensions Act 2008, an employer must provide a pension scheme if they have at least one staff member aged between 22 and state pension age, who earns more than £192 per week (£833 per month or £10,000 per year).
If a business is found to be non-compliant, they could receive an inspection from TPR at short notice.
Darren Ryder, director of auto-enrolment at The Pensions Regulator, said:
Our data and intelligence streams enable us to detect potential non-compliance and take swift action against employers. This allows us to target our resources in a very focused way as part of our role to protect pension savers.
A minority of employers who ignore their responsibilities can expect a knock at the door from us, and enforcement action.
If a business is targeted by a short notice inspection, it’s important that they are fully cooperative with the watchdog, as failure to provide information to an Inspector when requested is classed as a criminal offence.
If an employer fails to comply with statutory notices for auto-enrolment, they could face an initial £400 fixed penalty notice.
For those who don’t comply after a statutory notice, TPR can issue an escalating penalty notice (EPN), with fines of between £50 and £10,000 per day, depending on the number of staff.
Contact your local Champion Accountants practice today to discuss your auto-enrolment duties.
At the Development Bank of Wales, we provide loans and equity investments to Welsh businesses, or th...
Emma Bradfield, who works in our Audit & Accounts team in Manchester, competed in her first Iron...
HOW WE HELP YOU Our Management Accounts service can be fully tailored to your nee...
Growing through acquisition is an exciting opportunity for your business, but fear o...
Innovative software developers, Sevron Ltd, help businesses reduce risk in the workplace by creating specialist Health & Safety software systems.