The footwear chain Johnsons Shoes Company has turned a £400 fixed penalty notice into a bill for £42,000, according to The Pensions Regulator.
The initial amount was payable after it was found that the company hadn’t complied with its auto-enrolment responsibilities. Johnsons paid the bill but, despite reminders and warnings, didn’t then become compliant. That meant that it incurred a fine of £2,500 for each day that it didn’t meet its responsibilities. It wasn’t until that figure reached £40,000 that the business became compliant and eventually agreed to pay £40,000 plus £2,000 in court costs.
The Pensions Regulator has issued a stark warning: “…fail to comply with the law and you may be fined. Fail to pay your fine and we may take you to court.”
Unsure about your pensions duties? The duties-checker a good starting point.