[2025] UKFTT 01290 (GRC)

The appellant is an employer with automatic enrolment duties under the Pensions Act 2008 (the 2008 Act).

In February 2024 the respondent wrote to the appellant regarding his automatic enrolment duties. The letter records the duties start date (the date the appellant’s first employee started working for him) as 1 January 2024. The letter informs the appellant that he should use the respondent’s online tool to work out what he needed to do and how to meet his duties. The letter informs the appellant that he needs to complete a declaration of compliance by 31 May 2024. The letter is addressed to the appellant at the same address as all subsequent correspondence. The letter notes that the respondent does not hold an email address for the appellant and asks him to confirm whether that is correct so that they can send him information and reminders by email.

In March 2024 the respondent wrote to the appellant asking him to update his contact details by providing an email address. The letter reminded the appellant that he has duties for automatic enrolment, referred him to the online tool and stated that the deadline for him to complete the declaration of compliance was 31 May 2024.

In May 2024 the respondent wrote to the appellant requiring him to take immediate action to avoid a potential fine. The letter states that the appellant must complete his declaration of compliance and that the deadline for doing so was 31 May 2024.

On 10 June 2024 the respondent sent the appellant a warning letter noting that the appellant had failed to complete a declaration of compliance by the deadline of 31 May 2024. The letter informs the appellant that it is his legal duty to ensure that his declaration is completed and gives a deadline of 14 days from the date of the letter to do so. It warns that failure to complete the declaration may result in the appellant being fined.

On 26 June 2024 the respondent issued a compliance notice to the appellant under section 35 of the 2008 Act. It advised that the appellant had failed to comply with a requirement to inform the respondent how he had met his automatic enrolment duties. This requirement is known as a declaration of compliance and is required within five months of the duties start date or staging date. The compliance notice states that the duties start date, or staging date is 1 January 2024. The notice states that the appellant must complete a declaration of compliance by 6 August 2024. It warns the appellant that if he does not comply by the deadline, he may be liable to pay a £400 penalty.

The appellant failed to complete a declaration of compliance by 6 August 2024 and on 21 August 2024, the respondent issued a fixed penalty notice (FPN). The notice advised that the penalty of £400 must be paid by 18 September 2024. The FPN warned that if the appellant failed to pay by the deadline, an escalating penalty notice (EPN) may be issued, which would accrue at a daily rate which varies from £50 to £10,000.

The appellant requested a review of the FPN on 28 August 2024. In his grounds for requesting the review, the appellant states that he did not receive the compliance notice. He requested the opportunity to comply and asked that the penalty be withdrawn.

On 4 September 2024 the respondent provided the outcome of the review. The respondent concluded that the compliance notice and FPN were both properly served to the correct address. The respondent decided to vary the FPN deadline date to 1 October 2024. It is stated that this was to give the appellant additional time to complete his automatic enrolment duties but noted that the fixed penalty must still be paid by the revised deadline.

The appellant completed a declaration of compliance on 20 September 2024. He did not pay the £400 penalty.

The appellant lodged an appeal to this tribunal dated 2 October 2024.

On 3 October 2024 the respondent issued a penalty reminder in respect of the unpaid penalty. The reminder states that the appellant must make payment within 7 days to avoid legal action being taken, which will incur additional costs that he would be liable to pay.

On 10 October 2024 the respondent issued a further penalty reminder in the same terms as that issued on 3 October 2024.

On 17 October 2024 the respondent wrote to the appellant to put him on notice of intended legal action in compliance with the Civil Procedure Rules Pre-Action Protocol for Debt Claims.