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Local business owners could face County Court Judgements if they fail to act on workplace pension schemes, a local tax specialist has warned.
Yogesh Pathmanathan who runs TaxAssist accountants in Greenwich and Woolwich said: “In the first quarter of this year, over 17,000 fines and other sanctions have been issued to small businesses who did not meet their staging date for the new auto-enrolment pensions. One small business, which cited work pressures as a reason for not complying with the new regulations, was given a £40,000 fine plus court costs.
“Businesses that have ignored penalty notices are now receiving County Court Judgements, which could seriously affect their credit rating and ability to borrow money in the future. The Pensions Regulator has also said that it intends to publish details of those companies.
“We’re advising many local business owners who have now received notices from the Pensions Regulator giving the date from which they must automatically enrol all eligible employees into a pension scheme and contribute to their pension pot. Some have planned well in advance and have fully compliant schemes up and running already.
“Any employer who fails to comply, could face a £400 fixed penalty escalating to daily fines set at a minimum of £50 per day, £500 per day if they have over five employees, reaching a maximum of £10,000 per day if they have 500 or more employees, with the possibility of civil penalties and court action.”
In 2017, some 200,000 employers per quarter will be reaching their staging date for workplace pension schemes under the Government’s automatic enrolment rules. Nearly eight million people, across over half a million businesses, are now saving for their retirement.
TaxAssist Accountants Greenwich and Woolwich is a local business, based in London providing tax and accountancy advice and services purely to small businesses.