Auto-enrolment – ignore at your peril!
Auto-Enrolment Compliance: Ignore at Your Peril!
Employers must adhere to auto-enrolment duties, including submitting a declaration of compliance. Failure to do so can result in automatic £400 penalties.
The Importance of the Declaration of Compliance
The declaration of compliance confirms that you’ve met your auto-enrolment obligations. Even if all other administrative tasks are completed, neglecting this declaration can lead to fines.
Avoiding Common Auto-Enrolment Mistakes
Many businesses assume that setting up a workplace pension scheme is enough to meet auto-enrolment compliance requirements. However, failure to submit the declaration of compliance is one of the most common mistakes, leading to avoidable penalties. Employers must ensure they complete this final step within five months of their staging date or re-enrolment date. Additionally, failing to keep accurate records of pension contributions and employee opt-ins can result in further compliance issues. Regularly reviewing auto-enrolment procedures and ensuring ongoing contributions are correctly processed will help businesses avoid fines and demonstrate compliance with The Pensions Regulator’s rules.
Consequences of Non-Compliance
Ignoring auto-enrolment duties can lead to:
- Fixed Penalty Notices: An automatic £400 fine for failing to submit the declaration.
- Escalating Penalties: Daily fines ranging from £50 to £10,000, depending on the number of employees, if non-compliance continues.
These penalties underscore the importance of timely compliance.
How We Can Help with Auto-enrolment Compliance Penalties
At Lewis Brownlee, we assist businesses in navigating auto-enrolment duties to avoid compliance penalties. Our experts ensure all requirements, including the declaration of compliance, are met promptly. So, if you are at all concerned about auto-enrolment compliance penalties, please do get in touch. We offer a free introductory meeting so that you can meet us and find out how we can help. So, rest assured, help is at hand! To book your free, no obligation meeting, please contact us today!
By staying vigilant and completing all auto-enrolment tasks, you can avoid unnecessary fines and ensure your employees’ financial futures are secure.