Richbrook Developments Limited vs The Pensions Regulator

This case concerned a dispute between Richbrook Developments Limited and The Pensions Regulator, involving the issuance of a fixed penalty notice for failing to comply with pension re-declaration requirements.

TLDR:

• Richbrook Developments Limited challenged a £400 fixed penalty notice issued by The Pensions Regulator.
• The penalty was for failing to comply with a Compliance Notice regarding pension re-declaration.
• The First-tier Tribunal upheld the penalty, emphasizing the importance of timely compliance.

Richbrook Developments Limited ('the Employer') challenged a fixed penalty notice ('the Penalty Notice') issued by The Pensions Regulator on 25 October 2023. The Penalty Notice required the Employer to pay £400 for failing to comply with a Compliance Notice dated 30 August 2023.

The Regulator reviewed the decision to impose the Penalty Notice and confirmed it on 21 November 2023. The Employer then referred the matter to the Tribunal on 5 December 2023. The Tribunal agreed that the matter was suitable for determination on the papers.

The Employer's re-declaration deadline was 21 August 2023. Due to an error by British Telecom, the Employer's telephone and broadband were disconnected from 16 August to 3 October 2023. The Employer claimed this disruption caused a delay in completing the re-declaration until 22 August 2023.

However, the Tribunal found that the re-declaration was not completed until 28 November 2023. The Regulator issued a Compliance Notice on 30 August 2023, which was not complied with, leading to the Penalty Notice on 25 October 2023.

The Employer argued that the disconnection by British Telecom and the subsequent disruption justified the delay. The Regulator countered that the Employer had ample opportunity to comply using alternative means and had received multiple reminders.

The Tribunal emphasized the importance of timely compliance with re-declaration requirements for the effective operation of the automatic enrolment scheme. The Tribunal concluded that the Employer did not have a reasonable excuse for the delay and upheld the Penalty Notice.

The Tribunal noted that the penalty amount is fixed by law and reflects the seriousness of non-compliance. The Tribunal confirmed the Penalty Notice and remitted the matter to the Regulator.

Legal representatives: Not specified

Judicial Panel: Judge Sophie Buckley

Case Citation Reference: [2024] UKFTT 477 (GRC)