UK business fined over £10,000 for auto enrolment non-compliance
The Pensions Regulator (TPR) have announced that an unnamed UK company has been fined £10,000 for auto enrolment non-compliance and have also been forced to pay £15,000 in backdated employee pension contributions.
Back in February, we reviewed the latest auto enrolment update from TPR. It revealed that 1,594 fixed penalty notices had been handed to non-complying businesses since the workplace pension reform began in October 2012, and that a shocking 1,013 of these had come from the period between October 1st and December 31st 2015. The key thing to remember here is that at this point, all larger businesses have staged already for auto enrolment, so this spike in the number of fines issued will come from smaller companies.
This month, TPR revealed that an unnamed UK company have been fined for not complying with auto enrolment, their fine can be broken down as such:
- £400 on the spot fine for not meeting their staging date
- £10,000 penalty worked out as £2,500 for each non-complying day after staging date
- £15,000 in back paid employee contributions
All in all, the company had to pay around £25,400 simply because of not preparing for auto enrolment. Remember, TPR recommend businesses begin preparations for their staging date 12 months before their deadline, regardless of the size of the business.
This example bears similarities to Dunelm, who missed their staging date and had to pay tens of thousands of pounds through fines and missed back payments. Ensure your business prepares early enough so that if any potential issues do arise, you have enough times to correct them. You can read more about the Dunelm case by downloading our free 13-page guide, which also introduces the 7 ways to streamline your auto enrolment process.
If your business is currently preparing for auto enrolment and you need a payroll software solution which can help make the staging and preperation process easier, speak to us today about the IRIS AE Suite™, the industry’s leading auto enrolment solution.
Developed through close relations with The Pensions Regulator, pension providers, as well as through customer feedback, the IRIS AE Suite™ is the most comprehensive auto enrolment solution currently on the market. Book a free, no-obligation product demo today to see how the IRIS AE Suite™ can help make a complex legislation change like auto enrolment much easier to manage for your business.