The figures demonstrate how the regulator is continuing to take a tough approach to employers who are not complying with their AE duties.
The Director of AE at TPR, Mel Charles, said:
“Employers may have seen their business change because of COVID-19, but their pension duties have not. While we issued easements at the start of the pandemic, we closely monitored compliance and took action where necessary. We continued to target employers who committed serious breaches and where staff contributions were at immediate risk.
As predicted, we are seeing a return to normal levels of enforcement activity in line with our expectations, but we will monitor this closely.
Indications are that the majority of employers are paying their contributions in full and on time and we have not seen any unusual increase in reports of late payments by pension schemes.
However, employers must remember their pension duties continue and failure to fulfil them may lead to legal action.”
The Bulletin also highlights how TPR secured its first confiscation order under the Proceeds of Crime Act (POCA) 2002 in September, when a criminal who swindled more than £250,000 from a charity’s pension scheme was instructed to pay back the stolen money or face further jail time. In a separate hearing in October, TPR secured a second confiscation order under POCA for an individual who defrauded a scheme of £292,000.
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Eat Out to Help Out scheme post-payment checks begin 25 November 2020
HMRC has started to write to certain Eat Out to Help Out claimants to request that they check the claims that they have submitted to ensure that they are accurate.
The scheme meant that over 84,000 food and drink establishments took part and offered a 50% discount on eligible purchases every Monday, Tuesday and Wednesday during August 2020. Restaurants were paid within five working days of submitting claims, and whilst controls were built in to ensure the scheme was only used in the correct manner, post-payment compliance checks are now underway. It is believed that approximately 4,000 businesses will be contacted, where HMRC records indicate that they may have submitted an incorrect claim, or claims.
One of the controls that was built into the system meant that only food businesses registered with their relevant local authority by 7 July 2020 were eligible for the scheme.
Claimants under the scheme have a period of 60 days in which to respond to the letter or HMRC may begin a formal compliance check, which could result in the need for businesses to pay statutory interest and penalties.
Certain claimants may be asked to provide evidence of their eligibility for the scheme and show how they arrived at their Eat Out to Help Out calculations. This follows a similar approach that has been taken by HMRC in relation to post- payment compliance on both the Coronavirus Job Retention Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS).
The text of the letter is as follows:
Eat Out to Help Out (EOTHO) Scheme - action needed We regularly make checks on payments made under the Eat Out to Help Out (EOTHO) scheme. Our records show you may need to repay some or all of the payments you have received.
This is because you may have:
• Claimed for more EOTHO payments than you were entitled to – this is based on the information we hold about your business, the amounts claimed and the data we hold about the payments you have received by credit and debit card
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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