Thomas Doonan t/a Milano Hair v The Pensions Regulator
[2023] UKFTT 735 (GRC)
Cofal Limited v The Pensions Regulator
4 July 2024
[2024] UKFTT 578 (GRC)
First-tier Tribunal
A small coffee shop was fined for not filling out extra paperwork related to pensions. Even though they did everything else right, the government agency fined them. A judge decided the fine was unfair because the coffee shop owners quickly fixed the problem once they understood what to do.
Key Facts
- •Cofal Limited appealed a £400 penalty notice from The Pensions Regulator for failing to submit a declaration of compliance.
- •Cofal Limited was formed on March 28, 2023, and its duties under the Pensions Act began on May 6, 2023.
- •The compliance declaration was due by December 12, 2023.
- •Cofal Limited submitted the declaration after receiving the penalty notice.
- •Cofal Limited argued it was unaware of the declaration requirement, due to inexperience with auto-enrolment and business pressures.
Legal Principles
Pensions Regulator's duty to ensure compliance with underlying duties.
Pensions Act 2008
Tribunal's wider discretion in reviewing penalties compared to the Regulator.
UKFTT-GRC 2024 578
Outcomes
Appeal accepted. Penalty notice disapplied.
The Tribunal found the Regulator's assertion that meeting underlying duties was irrelevant to the failure to file the declaration to be an overstatement. The Tribunal considered the employer's prompt response after understanding the requirement, and concluded that the penalty was disproportionate given the circumstances.