If you’re hiring staff, you’ll need to ensure you meet your legal obligations for your workplace pension. In the UK, this means completing a pension declaration of compliance with The Pensions Regulator. In this article, we'll help you understand the steps you need to take to complete your declaration of compliance and what happens if you miss your deadline.
The declaration of compliance highlights to The Pensions Regulator the steps you have taken to comply with your auto enrolment duties as an employer. You need to complete your declaration within 5 calendar months of your start date. Your start is the day your first member of staff joins the company.
All employers need to complete the declaration of compliance, even if no members of staff are auto-enrolled into a workplace pension scheme.
A declaration of compliance is required to show that you are meeting your auto enrolment duties. These duties can include:
Failure to submit your declaration of compliance to The Pensions Regulator could result in a fine.
If you’ve missed a deadline, you should tell The Pensions Regulator as soon as possible. In addition, you should ensure that you communicate the process of automatic enrolment in writing with your staff and put them into a pension scheme. You may be required to backdate employer contributions for staff members or even pay staff contributions so that they do not miss out.
Non-compliance can have legal consequences resulting in penalty notices or for severe cases, prosecution.
Completing a declaration of compliance can take as little as 15 minutes, provided you have the required information at hand. You can use the declaration checklist to help you gather what you need. To get started, you’ll need:
You can start the declaration of compliance provided you have received the letter code and PAYE reference from The Pensions Regulator.
To complete your pension declaration of compliance, create an account on The Pension Regulator’s Gateway or log in using your Government Gateway ID. It’s best to start as soon as possible. But, you don’t need to fill it out at once and you can save it as you go.
Ensuring that you fulfil your workplace pensions duties is a mandatory requirement and it’s crucial that you comply with legislation. Failure to do so could result in financial or legal consequences.
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