CUMBRIAN employers can expect no leniency if they fail to meet their obligations under auto enrolment, a specialist is warning.

Karen Thomson, director of payroll at Armstrong Watson in Carlisle, has spoken out after Swindon Town Football Club was fined £22,900 last week for repeatedly failing to comply with the regulations.

Auto enrolment obliges employers to enrol all staff in a pension scheme, although employees can opt out afterwards.

It is being phased in, starting with the largest firms, but all employers must comply by 2018, even those with just one employee.

Those that do not face fines from the Pensions Regulator.

More than 78,000 employers had completed their auto enrolment staging duties by the end of 2015.

But, in the last quarter of the year, the Pensions Regulator issued 2,500 statutory notices to those that had not complied.

In addition, it issued more than 1,000 fixed-penalty notices of £400 and 24 escalating penalties.

Escalating penalties involve daily fines, on top of the fixed penalty of £400. These can be from £50 to £10,000 per day, depending on the number of employees the business has. 

With larger employers all signed up to auto enrolment by now, the spotlight has turned to small businesses that do not employ human resources professionals and may be unaware of their obligations.

Mrs Thomson said: “With the tsunami well on its way, with most months in 2016 seeing around 50,000 small and micro employers a month commencing their auto-enrolment duties, it is really important these employers seek help if they don’t understand the requirements.

“Can a small business really afford £400 one-off fine and daily penalties of £50 or more per employee?"

She added: "Here at Armstrong Watson the payroll services team and pension advisors have been gearing up to help its clients for the last four years. Don’t wait until it is too late, seek help now.”