[2025] UKFTT 01284 (GRC)

The appellant is an employer with a statutory duty to make relevant contributions to occupational or personal pension schemes. On 30 December 2024 the respondent issued an unpaid contributions notice (UCN) because the appellant’s pension provider had reported that contributions for the period 1 April 2024 to 31 October 2024 had not been paid. The UCN directed the appellant to do three things:

The deadline for compliance with the UCN was 10 February 2025. The UCN contained a warning that a failure to comply before the deadline could result in the issue of a FPN. It is asserted that the appellant did not contact the respondent in response to the UCN and no evidence of compliance was provided by the deadline.

This led to the respondent issuing a FPN in the sum of £400 on 25 February 2025. The deadline to pay was 25 March 2025.

On 1 March 2025 the appellant’s representative contacted the appellant’s pension provider (NEST) by email, to enquire about gaining access to their account and submitting payments. Access was granted on 24 March 2025 following completion of relevant forms.

The appellant requested a review of the FPN on 6 March 2025. The respondent conducted a review and on 7 March 2025 confirmed the FPN on the basis that no evidence that the unpaid contributions had been paid was provided.

On 27 March 2025 the respondent issued an escalating penalty notice (EPN) with reference 272364731104 given the ongoing non-compliance. The deadline for compliance was 23 April 2025. The EPN contained a warning that if the appellant failed to comply, the penalty would accrue at a daily rate of £50 from 24 April 2025. The respondent also issued a penalty reminder letter on 27 March 2025 in respect of the unpaid £400 penalty.

The appellant’s representative requested a second review of the FPN on 2 April 2025. In the request it is asserted that once access to the appellant’s account with the pension provided had been obtained, payment of the overdue contributions was made. No information about when the contributions were paid was provided and no evidence of payment was submitted.

On 4 April 2025 the respondent replied to the request for a review. The respondent declined to carry out a review of the FPN on the basis that the request was made after the 28-day deadline from the date on which the FPN was issued. The respondent decided to vary the EPN, extending the deadline to 30 April 2025 to give the appellant more time to provide evidence to demonstrate that the unpaid contributions had in fact been paid.

The appellant’s appeal to the tribunal is dated 21 April 2025.

On 9 June 2025 the respondent contacted the appellant to request further information, the purpose of which was to enable the respondent to decide whether to defend the appellant’s appeal. The appellant did not respond to the request. It does not appear that the respondent had received or was aware when it wrote to the appellant on 9 June 2025 of a further report from the appellant’s pension provider which was submitted on or shortly before 12 April 2025. The pension provider’s report notified the respondent that the appellant had complied with the requirement to pay the missing contributions. The respondent’s records were updated to show the appellant as compliant as of 12 April 2025 and it was recognised that as compliance had been confirmed before the extended deadline of the EPN (30 April 2025), there was no accrual period attached to the EPN.