AJ Rayson Ltd v The Pensions Regulator
[2024] UKFTT 463 (GRC)
SS Edge Ltd v The Pensions Regulator
4 June 2024
[2024] UKFTT 464 (GRC)
First-tier Tribunal
A company didn't follow the rules for automatically enrolling staff into a pension scheme. They were fined £400. Even though they said they never got the warning letter, the judge said they should have known about the rules and the fine stands.
Key Facts
- •SS Edge Ltd. (Employer) failed to provide a declaration of compliance for automatic enrolment by the August 8, 2023 deadline.
- •The Pensions Regulator (Regulator) issued a Compliance Notice (CN) on August 17, 2023, and a Fixed Penalty Notice (FPN) on October 12, 2023, for non-compliance.
- •The Employer claimed non-receipt of the CN, stating correspondence was not found in their shared office mailbox, and only received the FPN.
- •The Regulator sent the CN and FPN to the Employer's registered office address and relied on statutory presumptions of service and receipt.
- •The Employer completed the declaration of compliance on October 20, 2023, after the FPN was issued.
Legal Principles
Employers have legal obligations regarding automatic enrolment under the Pensions Act 2008.
Pensions Act 2008
The Regulator can issue a Compliance Notice and subsequently a Fixed Penalty Notice for non-compliance with automatic enrolment duties.
Pensions Act 2008, section 40
A person issued with an FPN can appeal to the Tribunal after applying for a review with the Regulator.
Pensions Act 2008, section 44
The Tribunal considers the evidence and makes its own decision on the appropriate action, confirming, varying, or revoking the FPN.
Tribunal Procedure (First-tier Tribunal) (General Regulatory Chamber) Rules 2009
The Regulator can rely on statutory presumptions of service and receipt unless strong evidence to the contrary is provided.
Not explicitly stated in the Act but implied by the Tribunal's decision
Outcomes
The Tribunal dismissed the appeal and confirmed the Fixed Penalty Notice.
The Employer failed to provide a reasonable excuse for non-compliance. The Regulator properly served the CN, and the Employer's evidence of non-receipt was insufficient to overturn the statutory presumptions.