Auto Enrolment – non-compliance risks your credit rating
The Pension Regulator has reported that they are beginning to see the first employers receive County Court Judgements (CCJs) for a failure to pay their automatic enrolment fines. This can happen when they persistently ignore the penalty notices sent to them.
If they don’t pay the fine within 30 days of receiving the CCJ, it gets entered on their credit record and remains there for six years, seriously affecting their ability to borrow money for their business in the future.
They are also reporting an increase in the number of people appealing their fines at Tribunal, and yet so far no employer has been able to show that they had a reasonable excuse for failing to comply.
The message to employers has always been to ensure they leave enough time and be clear about what they will need to do to comply.