The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Exceptions
TPR has received several questions about the changes to the AE regulations in April 2016, which allow employers to choose not to enrol, or re-enrol, certain individuals.
These include:
Directors working under an employment contract who are not the sole employee LLP partners who are not regarded as ‘salaried members’ under HMRC tax rules People who are working their notice period Individuals who have ceased active membership of a qualifying pension in the previous 12 months People with HMRC tax protected status for their pension savings.
There is a common misunderstanding that, where the exception is applied, all AE duties are waived. Only the enrolment duty is optional, all other duties remain unchanged.
The individuals retain the right to ask to join or opt-in (except people working their notice), in which case the employer is obliged to enrol them.
Even if the employer is able to choose not to enrol all of their staff:
The employer still has to send the normal statutory letters and emails Make a declaration of compliance, at the usual time.
You can find more information on TPR's website including details of director exemptions.
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Employers - don't risk your credit rating 3 February 2017
Employers who ignore their automatic enrolment duties could find themselves with a County Court Judgement, The Pensions Regulator (TPR) has warned.
TPR has issued the latest Quarterly Compliance and Enforcement Bulletin . While the number of fines has again risen, this is in proportion to the sharp increase in the number of employers now reaching their deadline to comply.
The report notes that a small number of employers have now been handed County Court Judgements (CCJ) after failing to pay their automatic enrolment fines. This can happen when employers persistently ignore penalty notices sent to them by TPR. Employers that fail to pay within 30 days of receiving the CCJ, will have the details entered on their credit record. The report has the example of a South London removals firm who took nearly two years to comply with their automatic enrolment duties, despite receiving two Fixed Penalty Notices (FPNs) and an Escalating Penalty Notice (EPN). It was only when TPR applied for a CCJ that the employer became compliant and paid their fines. “A CCJ goes onto an employer’s credit record and remains there for six years, seriously affecting their ability to borrow money for their business in the future. Burying your head in the sand and ignoring your legal duties means your staff are missing out on pensions they are entitled to and your credit rating and reputation could be hit.” The report flags the hospitality sector as an area at higher risk of non-compliance. The sector, which includes hotels, pubs and bars, has received a higher percentage of fines. This is an area which typically includes a large proportion of employees on non-standard contracts, which in part explains the higher proportion of non-compliance. Charles Counsell, Automatic Enrolment Executive Director said:
Small employers can become non-compliant because they are more likely to leave things to the last minute but in most cases the nudge of a compliance notice is enough to get them back on track.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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