If you’re an employer in the UK and hiring staff, it’s crucial to meet your legal obligations regarding workplace pensions. One key step is completing the pension declaration of compliance with The Pensions Regulator. This article will guide you through the process, ensuring you understand how to fulfil your duties and the implications of missing the deadline.
What is the Declaration of Compliance?
The declaration of compliance is a crucial submission to The Pensions Regulator. It outlines the actions you’ve taken to adhere to your auto-enrolment responsibilities as an employer. The declaration must be completed within 5 calendar months of your duties start date, which is when your first employee joins your company. This requirement applies to all employers, even if no staff members are enrolled in a pension scheme.
Importance of the Pension Declaration
The pension declaration of compliance demonstrates that you’re fulfilling your auto-enrolment obligations.
These responsibilities encompass various tasks, including:
- Confirming staging (and re-staging) dates, now known as Duties Start Date.
- Maintaining accurate employee records.
- Recording contribution payment dates.
- Managing requests to join or leave the pension scheme.
- Keeping track of employee ages and earnings. Failing to submit the declaration on time can lead to financial penalties.
Consequences of Missing the Deadline
If you’ve missed the declaration deadline, prompt communication with The Pensions Regulator is essential. Additionally, you should inform your staff in writing about the automatic enrolment process and enroll them in a pension scheme. Depending on the situation, you might need to backdate employer contributions or cover staff contributions to ensure they don’t miss out. Non-compliance could result in penalty notices or even legal action for severe cases.
Information Required for Completion
Completing the declaration can be a quick process, lasting around 15 minutes if you have already taken all the steps and have the necessary information ready.
A declaration checklist can assist you in gathering what you need. To begin, ensure you have:
- Your Government Gateway ID, login, and password.
- Contact details, including name, address, phone number, and email.
- PAYE scheme reference.
- Letter code provided by The Pensions Regulator.
- Employer’s contact information.
- Details about the type of pension scheme.
- Employer pension scheme reference.
If you prefer to delegate all the setup to Husky, our team will ensure your full compliance through real-time data audits, minimising the risk of potential fines. If you’ve received a penalty notice or are worried about a breach, we’re here to help.
Our team can efficiently resolve any issues on your behalf.
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