The Pensions Regulator and HMRC – Left hand talks to right hand!
The Pensions Regulator is now using real time payroll data to check your pension contributions are correct.
Through Auto-Enrolment, The Pensions Regulator monitored non-compliance, issuing 14,507 Fixed Penalty Notices and 2,517 Escalating Penalty Notices by the end of March 2017. As companies were not completing their Declarations of Compliance, the Regulator was able to track these companies and contact them when the Declaration was late.
Now that all existing companies have complied with Auto-Enrolment, the Regulator is turning its attention to minimum contribution levels. We’re beginning to see the Regulator reviewing Real Time Information (RTI) returns and checking pension contributions against earnings data. We’ve seen evidence of the Regulator directly contacting companies where they believe pension contributions may not be in line with the minimum amounts.
It’s worth being aware that there may be perfectly acceptable reasons why contributions on the RTI may be flagged, for example, a scheme operated under salary exchange will look like there are no employee contributions (as all payments are made as employer contributions). A simple payroll extract to The Pensions Regulator to evidence this would satisfy them that there was no cause for concern.
The RTI returns and information requested from pension providers are some of the ways that the Regulator is ensuring continued compliance with the Auto-Enrolment rules. Companies of all sizes need to ensure that their minimum contribution levels are in line with the legislative requirements and that this can be clearly evidenced through payroll records.
If you are unsure about the levels of contributions, Ink can conduct an audit for you. Please contact us for more information. Call us 01858 810200 or email email@example.com. For more information about Ink and the services we offer visit www.theinkgroup.co.uk.
Like this? Share it