Staff on Service Limited v The Pensions Regulator
Neutral citation number: [2026] UKFTT 00467 (GRC)
Case Reference: FT/PEN/2025/0219
First-tier Tribunal
(General Regulatory Chamber)
Pensions
Decided without a hearing
Listed to be heard on: 16 February 2026
Decision given on: 1 April 2026
Before
JUDGE A. MARKS CBE
Between
staff on service LIMITED
Appellant
and
THE PENSIONS REGULATOR
Respondent
Decision: The reference is dismissed, and the matter remitted to the Respondent. The Fixed Penalty Notice is confirmed.
REASONS
Background
Staff on Service Limited ('the Employer') challenges a Fixed Penalty Notice ('FPN') issued by the Respondent ('the Regulator') on 11 September 2025 under Notice number 137570357988.
The Regulator confirmed the FPN after a review at the Employer's request. The Employer then appealed to the Tribunal, seeking an oral hearing and giving contact details for its representative.
At the appointed time of the appeal hearing on 16 February 2026, only the Regulator's representative attended: neither the Employer nor its representative appeared.
Attempts by the Tribunal staff to secure attendance by or on behalf of the Employer failed so, after nearly an hour, the oral hearing was abandoned. The Regulator's representative consented to the Tribunal deciding the matter on the papers.
The Employer's representative later contacted the Tribunal saying he was unaware he was expected to attend the hearing: he agreed to the case being decided on the papers.
The papers comprise a bundle of 119 pages of evidence and submissions by both parties.
The Tribunal concluded the matter was suitable for determination on the papers in accordance with the Tribunal Rules 2009.
The Appeal and Response
The Employer's appeal grounds are:
The Employer did not receive the CN so was deprived of the opportunity to take corrective action (which she has since taken).
The organisation has fulfilled all its automatic enrolment duties: contributions have been correctly calculated, deducted and paid to the relevant pension scheme on time. Staff are properly enrolled and have suffered no detriment.
The penalty is disproportionate and unjustified as no breach has occurred. so the FPN serves no regulatory purpose.
In its response dated 22 October 2025, the Regulator opposed the appeal on the basis that the above grounds do not amount to a reasonable excuse for failing to comply with the CN.
The Regulator submits that:
Both the CN and the FPN were legally and properly served on the Employer;
The Regulator relies upon the statutory presumptions of service and receipt in section 144 of the Act; section 303(6)(a) of the Pensions Act 2004; and Reg. 15(4) of the Employers' Duties (Registration and Compliance) Regulations 2010.
The Employer accepts that the FPN was received. It has given no explanation for non-receipt of the CN which was sent by the Regulator to the same registered office address.
No evidence has been provided to support the Employer's assertion that the CN was not received, nor is there evidence that the CN was returned undelivered.
In the absence of any evidence to the contrary, there is no basis for overturning the statutory presumptions of delivery and receipt.
The Regulator's Welcome Pack and reminder letters, all sent to the Employer's then registered office address, stated the deadline of 31 January 2025 for the declaration of compliance and gave guidance to help the Employer complete it.
Even if the reminder letters did not arrive, they are sent as a courtesy rather than a legal requirement.
Late or eventual compliance does not excuse the original failure nor comprise reasonable grounds to revoke a penalty imposed after the deadline for compliance.
Findings of fact, consideration and decision
The facts
Based on the evidence, the Tribunal finds the following facts proved on the balance of probabilities:
The Employer is a private limited company incorporated on 1 September 2023 and the employer for the purposes of the Pensions Act 2008 ('the Act').
Under the Act, the Employer’s duties start date was 1 September 2024: the deadline for submitting its declaration of compliance was five months later (31 January 2025).
The Regulator sent the Employer reminder letters in November and December 2024, and January 2025.
On 17 July 2025, having revoked previous notices sent to the Employer's former registered office address but no declaration of compliance having been made, the Regulator issued a Compliance Notice ('CN') to the Employer's new registered office. The CN extended the deadline for submitting the declaration of compliance to 27 August 2025.
On 11 September 2025, as no declaration of compliance had been received, the Regulator issued a FPN imposing a fixed penalty of £400 payable by 9 October 2025 and requiring compliance with the CN by the same date.
On 20 September 2025, the Employer's representative requested a review to which the Regulator responded on 24 September 2025 confirming the FPN.
On 24 September 2025, the Employer complied with the CN by filing a declaration of compliance and immediately appealed against the FPN to the Tribunal.
Consideration
The Employer does not challenge that the CN was issued and sent by the Regulator: it simply denies that the CN was received.
There is no suggestion of any previous problems with post addressed to the Employer's registered office.
No explanation for non-delivery and/or non-receipt of the CN has been given, let alone any evidence to overturn the statutory presumptions that a notice correctly addressed to a company's registered office is both delivered and received at that address.
In this case, the Employer had not only the statutory five months - itself a generous period - to complete its declaration of compliance but almost a year due to extensions provided by the various notices.
The Regulator was entitled to issue the FPN and did so, two weeks after expiry of the much-extended deadline for compliance.
The declaration of compliance is not a mere administrative detail but a vital source of information and a central part of the Regulator's compliance and enforcement approach.
Even if an employer engages third party professionals to assist with auto-enrolment, it remains the employer's obligation to comply on time and in full with its duties.
Late compliance does not excuse earlier non-compliance: the deterrent effect of penalty notices would be much diminished if notices were revoked once compliance was eventually achieved. In this case, the Employer had been non-compliant for over six months.
Decision
In the Tribunal's judgment, the Employer has given no reasonable excuse for failing to complete a declaration of compliance on time.
The amount of the penalty is fixed by law so the Tribunal cannot reduce it below £400. If paying the penalty would cause hardship, the Employer can approach the Regulator to discuss possible payment terms.
The Tribunal confirms the FPN and remits the matter to the Regulator. No directions are necessary.
Signed:
Judge A. Marks CBE
Date: 20 March 2026Sitting as a First-tier Tribunal Judge