5th December 2016 Posted by - Alexander Accountancy
During 2016 many small and medium sized businesses have had to implement a Workplace Pension in order to comply with the new guidelines set out by The Pension Regulator. However a large number have failed to provide a pension scheme for their employees.
From 1st January to 30th September 2016, 26,040 compliance notices were issued to businesses which resulted in 6,779 fixed penalties of £400 and 741 escalating penalties for non compliance.
Don’t let ignorance cost you money.
Many claimed their non compliance was unintentional and that they had a ‘reasonable excuse.’ The employers requested a review of the decision and contested their fines at a tribunal. In each case, the judge ruled their reasons did not amount to a ‘reasonable excuse’.
Circumstances which do not amount to a reasonable excuse include:
- You or a member of staff were ill.
- You relied on someone else and they let you down.
- You found the online system too difficult to use.
- You didn’t get a reminder.
- You made a mistake.
2017 will see even more companies being affected by this legislation and no doubt more penalties will be issued by The Pension Regulator.
Some trusted advisers are also adding to this problem by giving inaccurate advice and guidance.
The most common mistakes are made around exemptions which include:
- All sole traders are exempt – NOT CORRECT
- Limited companies with more than one director are exempt – NOT CORRECT
- Employers with employees earning below £10,000 per annum are exempt – NOT CORRECT
Every business has a unique set of circumstances and it is the employer’s responsibility to ensure all of the criteria are met.
For those who would like some free help and advice Alexander Accountancy have a proven track record in ensuring companies meet all of their obligations and avoid unnecessary fines. Why not contact our business advisers for a consultation to see how we can help you make the right decision. Please email us for a meeting at email@example.com or telephone us on Burton on Trent 01283 743851.