we ahve a new payroll client taken over from another firm
only two employees, one has earnings significantly over the earnings threshold for workplace pensions, but no workplace pension has been set up and the employee has never been enrolled or opted out
there is two years worth of deductions that should have been made
not sure on the best way forward or how to advise the client
Replies (4)
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Just tell the client they are not in compliance with the law, and ask what they want to do about it. That's all you need to do for the moment.
I'd suggest you also make client aware that RTI data (which I assume has been submitted to HMRC) is accessible now to TPR (The Pensions Regulator) ... so, although your client is small fry compared to their main targets, they WILL notice eventually. And the costs (not just penalties) of correcting everything start to really accelerate once the ER has become aware of their failings.
Basically, inaction isn't really an option (certainly not an advisable one). Client should approach TPR (or ask you to do so on their behalf) and ask for guidance re rectification options.
I'd suggest you also make client aware that RTI data (which I assume has been submitted to HMRC) is accessible now to TPR (The Pensions Regulator) ... so, although your client is small fry compared to their main targets, they WILL notice eventually. And the costs (not just penalties) of correcting everything start to really accelerate once the ER has become aware of their failings.
Basically, inaction isn't really an option (certainly not an advisable one). Client should approach TPR (or ask you to do so on their behalf) and ask for guidance re rectification options.
I would wholeheartedly agree. An ex client of mine (I disengaged for a reason) thought they didn't need to offer their over-threshold employees a pension as it was a family business, and ended up costing them £10k in penalties as they ignored TPR letters.