IMI Frank's Carwash Limited v The Pensions Regulator

Facts

IMI Frank's Carwash Limited, a new business, became subject to the employer duties under the workplace pensions legislation with a duties start date of 1 April 2025 and a deadline of 1 September 2025 for submitting its declaration of compliance to the Pensions Regulator. The declaration was not submitted by that date. The Pensions Regulator had issued reminder communications between May and August 2025, and a warning letter was sent on 10 September 2025 identifying that the deadline had been missed and giving a further 14 days to comply. A Compliance Notice was then issued on 25 September 2025 under section 35 of the Pensions Act 2008, requiring compliance by 5 November 2025. The company did not comply by that date, and a fixed penalty notice in the sum of £400 was issued on 20 November 2025 under section 40 of the Pensions Act 2008. The declaration of compliance was submitted on 4 December 2025. The company requested a review on 9 December 2025, and by email of 12 December 2025 the Regulator confirmed that the notice would stand. The company referred the matter to the First-tier Tribunal, contending that it had enrolled with a pension provider and paid contributions from the outset, that there was no intention to avoid compliance and no harm caused, that it complied as soon as it became aware of the issue, and that the penalty was a burden on a new business. Both parties consented to determination on the papers.