Companies persistently ignoring penalty notices from the Pensions Regulator could be harming their future borrowing potential, it was warned today.
In its latest quarterly update, TPR revealed that for the first time employers failing to pay auto-enrolment fines had been issued with County Court Judgements (CCJs).
If firms do not pay within 30 days of receiving a CCJ, it is entered onto their credit record where it remains for six years – seriously affecting their chances of borrowing money for the business.
Alan Fergusson, Mattioli Woods’ managing director of employee benefits, said: “We are seeing a new side to the Pensions Regulator who is no longer saying action will be taken, it is actually happening.
“For a smaller employer, the thought of having to comply with the regulation maybe daunting, but non-compliance is not an option.
“For larger employers who have already staged, the issue of re-enrolment is live, and equally many employers are falling foul of these rules”.
In the period October to December 2016, the PR issued 870 Escalating Penalty Notices (EPNs) and 2,919 Fixed Penalty Notices (FPNs).
The regulator today said there had been an increase in companies appealing fines at tribunals, but so far none had demonstrated “reasonable excuse” for failing to comply.