Business owners in Huddersfield could face hefty fines if they fail to act on workplace pensions, a local tax specialist has warned.
Nick Brook, of TaxAssist Accountants at Lockwood, said more than 17,000 fines and other sanction were issued to small businesses failing to meet their deadline for new auto-enrolment pensions. One small firm, citing work pressures for not complying, was given a £40,000 fine plus court costs.
Mr Brook said: “Businesses that have ignored penalty notices are now receiving County Court Judgements, which could seriously affect their credit rating and ability to borrow money in the future.
“The Pensions Regulator has also said that it intends to publish details of those companies.
“We’re advising many local business owners who have now received notices from the Pensions Regulator giving the date from which they must automatically enrol all eligible employees into a pension scheme and contribute to their pension pot. Some have planned well in advance and have fully compliant schemes up and running already.”
An employer failing to comply could face a £400 fixed penalty escalating to daily fines set at a minimum of £50 per day, £500 per day if they have over five employees, reaching a maximum of £10,000 per day if they have 500 or more employees, with the possibility of civil penalties and court action.