Sarah Curzon, Tax Director, MHA Broomfield Alexander
For the first time since the beginning of the government auto-enrolment initiative, three employers have been issued with penalty fines for non-compliance by The Pensions Regulator (TPR). The three firms that have been hit with penalties are amongst 163 firms that have been issued with notices by TPR between July and September 2014.
Over 33,000 firms have begun the auto-enrolment process so far, with an estimated 1.25 million due to stage over the next 3 years. The latest penalties are just the beginning. Despite the message to prepare early being hammered forward, TPR expect to see a number of employers failing to prepare themselves, either leaving it too late or simply failing to comply at all.
Every employer has a duty to enrol their employees into a pension scheme and contribute towards it. In preparing for this new law, there are a number of steps organisations can take to ensure a smooth transition.