Auto-enrolment: Non-compliance

The regulator issued three £400 fixed penalty notices between July and September to non-compliant employers. The period also saw a significant increase in the number of compliance notices sent out: 163 out of the total 177 compliance notices were sent in the 3 months to September.

Charles Counsell, executive director for auto-enrolment, warned that it was "not acceptable" to avoid complying with the legislation.

"As we deal with smaller employers, we will see more who, despite our message to prepare early, leave it too late or do not comply at all," he said.

What is the cost of non-compliance?

The Pensions Regulator has a number of measures to take in case you don't comply with your auto-enrolment duties:

Informal action

The regulator will provide information and instructions via email, phone, letter and in person. A warning letter may be sent to confirm the schedule for complying with your duties.

Statutory notices

If you're late in paying contributions or fail to comply with your duties, the regulator will send you a statutory notice compelling you to comply. Interest at a rate estimated by the regulator can be charged on unpaid contributions.

Penalty notices

The regulator can issue fixed and escalating penalty notices if you fail to comply with a compliance warning:

• Fixed notices are charged at £400 and are due in a specific time period
• Escalating notices are charged at a daily rate of between £50 and £10,000 depending on how many staff you have.

Court action

The regulator has the power to launch civil and criminal proceedings if you continue to ignore your auto-enrolment duties. Assets may be confiscated or frozen if a criminal investigation is opened.

Talk to the experts

Dunkley's accountants and business advisers can help you prepare for auto-enrolment. Don't leave it to chance and don't leave it too late.

Fill in our contact form, call us on 01454 619600 or email us at advice@dunkleys.accountants to start preparing now for auto-enrolment.