Key Facts
- •Sacha Lejune Hair Ltd (Appellant) appealed a £400 fixed penalty notice for failing to comply with an unpaid contributions notice (UCN) issued by The Pensions Regulator (Respondent).
- •The UCN, issued August 2, 2022, required the Appellant to calculate unpaid contributions, pay them to the pension provider, and provide evidence of compliance by September 12, 2022.
- •The Appellant failed to meet the September 12 deadline. A fixed penalty notice was issued September 28, 2022.
- •The Appellant claimed reasonable excuse due to Covid-related issues, employee illness, and IT problems, preventing timely response to the UCN.
- •The Regulator argued that late compliance wasn't sufficient grounds for revoking the penalty and some contributions remained outstanding.
Legal Principles
Employers have duties regarding automatic enrolment of employees into pension schemes (Pensions Act 2008).
Pensions Act 2008
The Pensions Regulator can issue UCNs for unpaid contributions and fixed penalty notices for non-compliance.
Pensions Act 2008
The Regulator can serve notices on companies at their registered or principal office (Pensions Act 2004). There's a presumption of receipt.
Pensions Act 2004, Employers' Duties (Registration and Compliance) Regulations 2010
The Tribunal considers whether a reasonable excuse exists for non-compliance when assessing penalty notices.
Pensions Regulator v Strathmore Medical Practice [2018] UKUT 104 (AAC)
A mere assertion of non-receipt of a notice doesn't overturn the presumption of service.
London Borough of Southwark v (1) Runa Akhter v (2) Stel LLC 2017 UKUT
Outcomes
The appeal was dismissed.
The Appellant failed to provide sufficient evidence of a reasonable excuse for non-compliance with the UCN. The statutory presumption of service applied, and the Appellant did not rebut it. Late or eventual compliance does not excuse failure to meet the UCN's requirements, including providing evidence of compliance by the deadline.