RM Group Holdings Limited v The Pensions Regulator
[2024] UKFTT 406 (GRC)
Clearchoice Windows Doors and Glazing Ltd v The Pensions Regulator
14 August 2023
[2023] UKFTT 670 (GRC)
First-tier Tribunal
A company didn't pay its employees' pensions on time. They blamed their accountants, but the judge said the company is still responsible, so they have to pay a £400 fine.
Key Facts
- •Clearchoice Windows Doors and Glazing Ltd (Employer) failed to comply with an Unpaid Contributions Notice (UCN) by the deadline of 14 November 2022.
- •The UCN, issued on 3 October 2022, required the Employer to pay outstanding pension contributions for May-July 2022 and provide evidence of payment.
- •The Pension Regulator issued a Fixed Penalty Notice (FPN) of £400 on 29 November 2022 for non-compliance.
- •The Employer's appeal cited difficulties due to a change of accountants and lockout from their NEST account.
- •The Employer eventually paid the outstanding contributions in January 2023.
Legal Principles
Regulator's responsibility for work-based pension scheme regulation and maximising compliance.
Pensions Act 2004, section 5
Employer's duty to pay relevant pension contributions.
Pensions Act 2008, sections 37, 38
Regulator's power to issue UCN and FPN for non-compliance.
Pensions Act 2008, sections 37, 40
Right to appeal FPN to the Tribunal after review by Regulator.
Pensions Act 2008, section 44
Burden of proof rests with the appellant (Employer) on the balance of probabilities.
Tribunal Procedure Rules 2009
Employer retains ultimate responsibility for compliance, even when using third-party services.
Case Law precedent
Outcomes
The appeal was dismissed.
The Employer failed to provide a reasonable excuse for non-compliance; the difficulties with accountants did not absolve them of statutory responsibility.
The FPN of £400 was confirmed.
The Employer's non-compliance entitled the Regulator to issue the FPN; no exceptional circumstances warranted revocation.
The matter was remitted to the Regulator.
To allow the Regulator to enforce the confirmed FPN; the Tribunal has no discretion to reduce the penalty amount.
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