Stamford Geomatics Limited v The Pensions Regulator
[2024] UKFTT 65 (GRC)
HALLMARK SHEET METAL CO LIMITED v THE PENSIONS REGULATOR
1 February 2023
[2023] UKFTT 93 (GRC)
First-tier Tribunal
A company didn't pay its employees' pension contributions. The government fined them. The company tried to argue they were broke, but the judge said that wasn't a good enough reason, and the fine stands.
Key Facts
- •Hallmark Sheet Metal Co Limited (Employer) failed to comply with an Unpaid Contributions Notice for pension contributions.
- •The Pensions Regulator issued an Escalating Penalty Notice under s. 41(1) of the Pensions Act 2008.
- •The Employer appealed the Escalating Penalty Notice citing financial difficulties.
- •The appeal was heard by the First-tier Tribunal (General Regulatory Chamber) on the papers.
- •The Employer did not provide evidence to support its claim of a reasonable excuse for non-compliance.
Legal Principles
Employers have legal obligations regarding automatic enrolment of employees into pension schemes.
Pensions Act 2008
The Pensions Regulator can issue Unpaid Contributions Notices and, if not complied with, Fixed and/or Escalating Penalty Notices.
Pensions Act 2008
A person issued with an Escalating Penalty Notice can appeal to the Tribunal after applying for a review with the Regulator.
Pensions Act 2008
The Tribunal's role is to decide on the appropriate action for the Regulator, confirming, varying, or revoking the notice and remitting the matter.
Pensions Act 2008
The Regulator can rely on a presumption of service if notices were sent to the registered office address.
Pensions Act 2004 s. 303(6)(a) and Employers Duties (Registration and Compliance) Regulations 2010 reg 15(4)
Outcomes
The appeal was dismissed.
The Employer failed to provide evidence of a reasonable excuse for non-compliance with the Unpaid Contributions Notice. Financial difficulties do not constitute a legal excuse for failing to make pension contributions.
The Escalating Penalty Notice was confirmed.
The Tribunal found that the Employer had a duty to comply with the Unpaid Contributions Notice but failed to do so without a reasonable excuse.
The matter was remitted to the Regulator.
This is standard procedure following a Tribunal decision on an Escalating Penalty Notice.
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