12. Where the Regulator issues a fixed penalty notice to a person under subsection (1) or (2) of section 40 of the Act, the penalty is £400.
13.—(1) Where an escalating penalty notice is issued to a person—
(a)in respect of a failure to comply with a third party compliance notice under section 36 of the Act; or
(b)(i)in respect of a failure to comply with a notice specified in paragraph (2)(a) or (b), and
(ii)that failure was by a person other than an employer,
the prescribed daily rate is £200.
(2) Paragraph (3) applies where an escalating penalty notice is issued to an employer in respect of a failure to comply with—
(a)a compliance notice under section 35 of the Act;
(b)a notice under section 72 of the Pensions Act 2004(1) (provision of information); or
(c)an unpaid contributions notice under section 37 of the Act.
(3) Except where paragraph (1) applies, the prescribed daily rate is to be determined in accordance with Table 1 and the following paragraphs.
| Number of persons | Prescribed daily rate (£) |
|---|---|
1-4 5-49 50-249 250-499 500 or more | 50 500 2500 5000 10000 |
(4) In the first column of Table 1, the expression “Number of persons” is to be construed in accordance with paragraphs (5) and (6).
(5) Where–
(a)paragraph (2)(a) or (b) apply, it is the number of persons within an employer’s PAYE scheme (or where the Regulator is of the opinion that for any reason that employer has more than one PAYE scheme, the total number of persons within those schemes), but where in the Regulator’s opinion this number is not known, paragraph (7) applies;
(b)paragraph (2)(c) applies, it is–
(i)the number of workers in respect of whom the Regulator is of the opinion that the employer has not paid relevant contributions on or before the due date (within the meaning of section 37(3) of the Act); or
(ii)where in the Regulator’s opinion the number in (i) is not known, the number of persons within an employer’s PAYE scheme (or where the Regulator is of the opinion that for any reason that employer has more than one PAYE scheme, the total number of persons within those schemes),
but where in the Regulator’s opinion the number in (ii) is not known, paragraph (7) applies.
(6) In this regulation, the Regulator must use the latest information reasonably available to it up to and including the day on which the Regulator issues an escalating penalty notice—
(a)where paragraph (2)(a) and (b) apply, disclosed to it under section 88 of the Pensions Act 2004; and
(b)where paragraph (2)(c) applies–
(i)contained in a late payment report,
(ii)contained in a report given to the Regulator under section 70 of the Pensions Act 2004, or
(iii)disclosed to it under section 88 of the Pensions Act 2004.
(7) Where this paragraph applies, the prescribed daily rate must be treated as being £50.
14.—(1) This regulation applies where the Regulator issues a penalty notice to an employer if the Regulator is of the opinion that the employer—
(a)has contravened section 50 of the Act; or
(b)has failed to comply with a compliance notice under section 51 of the Act.
(2) The penalty is to be determined in accordance with Table 2 and the following paragraphs.
| Number of persons | Penalty (£) |
|---|---|
1-4 5-49 50-249 250 or more | 1000 1500 2500 5000 |
(3) In the first column of Table 2, the expression “Number of persons” is to be construed in accordance with paragraphs (4) and (5).
(4) It is the number of persons within an employer’s PAYE scheme (or where the Regulator is of the opinion that for any reason that employer has more than one PAYE scheme, the total number of persons within those schemes), but where in the Regulator’s opinion this number is not known, paragraph (6) applies.
(5) In this regulation, the Regulator must use the latest information—
(a)reasonably available to it up to and including the day on which it issues a penalty notice; and
(b)disclosed to it under section 88 of the Pensions Act 2004.
(6) Where this paragraph applies, the penalty must be treated as being £1000.
Subsections (1A) and (1B) were inserted by section 61(2) of the Pensions Act 2008.