Auto-enrolment - 24 hours to complete declaration

TPR advised new deadline applies once scheme becomes active

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A client had no employees on its staging date of 1 April 2016 and the PAYE scheme was closed.  I called up The Pension Regulator (TPR) and they marked the scheme as exempt.

A new PAYE scheme was set up in February 2017 and an auto-enrolment scheme and the first date for contributions was 28 February.

I just called TPR about the declaration of compliance and they said that this had to be completed within 24 hours of the scheme becoming active (i.e., after making the first contribution).  I can't find any guidance on this but I have completed the declaration of compliance today (it was not possible to complete it before the first contribution since the scheme was not yet active so I only had one day!).  I hope my client does not suffer penalties.

Anyone else come across this?

Replies (4)

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Euan's picture
By Euan MacLennan
01st Mar 2017 15:23

Eh?

The staging date for a new employer setting up a PAYE scheme in February 2017 would normally be 1st January 2018. Are you saying that the old PAYE scheme was resurrected, rather than a new one created, and hence, the staging date was the original 1st April 2016, meaning that you had to set up a scheme immediately on taking on qualifying employees?

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Replying to Euan MacLennan:
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By Matrix
01st Mar 2017 15:40

If the original payroll scheme was set up before April 2012 then, yes, the original staging date applies, even though this scheme has a new payroll ref for HMRC purposes. Although TPR told me something different each time I called and even today originally said it would be Jan 18 (v helpful after I was told a few weeks ago to set up a scheme which I did and first contribution already made)! They then went away and checked and said the declaration had to be made today. I asked them to make a note of the call since I do not want my client to be charged penalties.

I appreciate this is quite a unique set of circumstances.

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RLI
By lionofludesch
01st Mar 2017 15:36

News to me. I'm sure somebody on here said that you just had to submit a DoC at the staging date.

So far, it's not a situation I've needed to deal with.

"Immediate" is a bit over the top. Although I dare say it could be done easily enough.

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By DMGbus
01st Mar 2017 18:51

I have a case where I believe that the directors (being the only people paid salaries) made a "no workers" declaration to the PR.

Circumstances later changed (ie. started paying salaries to workers).

After much to/fro communications with the PR a new later than original staging date (ie. 1st October 2017) was established - so declaration of compliance deadline will be early in 2018 (not within 24 hours of starting to pay salaries to workers).

At one stage PR denied that a staging date could be changed, eventual outcome proved this assertion to be incorrect.

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