Spice Hut Abbots Limited v The Pensions Regulator

Facts

Spice Hut Abbots Limited, whose sole director is Md Barkat Ali, is an employer subject to the automatic enrolment duties under the Pensions Act 2008. Its duties start date was 7 May 2025, so its declaration of compliance fell due by 6 October 2025. Between June and September 2025 the Pensions Regulator sent three reminder letters to the company's registered office, setting out the deadline, the available assistance and the risk of penalties. No declaration was made, and on 23 October 2025 the Regulator issued a Compliance Notice extending the deadline to 3 December 2025. That deadline passed, and on 18 December 2025 the Regulator served a Fixed Penalty Notice of £400 requiring compliance by 15 January 2026. Non-compliance continuing, on 19 January 2026 the Regulator served an Escalating Penalty Notice requiring compliance by 15 February 2026 and imposing a daily penalty of £500 thereafter; £5,000 accrued, producing aggregate penalties of £5,400. The Regulator telephoned the employer on 9 March 2026, and the declaration was submitted the same day, disclosing five employees. Following an out-of-time review request by the employer's accountants on 17 March 2026, the Regulator reviewed the notices on its own initiative on 24 March 2026 and confirmed both. The employer referred the matter to the Tribunal on 14 April 2026, seeking cancellation or reduction of both penalties, relying on refurbishment of its premises, non-receipt of post and inexperience.