In the Chancellor’s Winter Economy Plan that, rather than paying in full at the end of March 2021, businesses will be now able to choose to make 11 equal instalments over 2021-22.
As an employer you are responsible for automatically enrolling staff who meet specific criteria in to a pension scheme and to contribute towards it.
This is a mandatory requirement and, if you don’t comply with your legal duties, you may receive an enforcement action from the Pensions Regulator. This could be either a compliance notice or a penalty fine. An initial fixed fine of £400 could be imposed, or, if this is ignored, you could face a varying daily escalating penalty from £50 to £10,000.
If you enrol staff late into a pension scheme, you will have to pay any missed employer contributions from the date the staff met the age and earnings criteria. You may also have to pay all of their contributions too.
If your fine isn’t paid debt recovery may be made through the courts. In addition, wilfully failing to put eligible staff into a pension scheme is a criminal offence, punishable by a maximum of 2 years imprisonment.
If you are struggling to understand or meet your legal obligations we are here to help. Simply contact us as soon as possible. We can support you with pensions automatic enrolment and ensure you are, and stay, compliant.