The Employers’ Duties (Registration and Compliance) Regulations 2010

Contributions: Requirement to pay interest

10.—(1) For the purposes of section 38(2)(e) of the Act, the rate at which interest must be paid on an amount required by a notice to be paid (“the rate”) is determined by the Regulator in accordance with paragraph (2).

(2) The rate comprises a fixed component and a flexible component where—

(a) the fixed component is 4.2%; and

(b) the flexible component is–

(i) the percentage change in the retail price index applicable for the month during which the Regulator issues a notice, or

(ii) where the retail price index applicable for the month during which the Regulator issues a notice is not published, the percentage change in that index for the preceding month.

(3) For the purposes of section 38(2)(e) of the Act, the period in respect of which interest must be paid on an amount required by a notice—

(a) begins with the appropriate date; and

(b) ends when an employer complies with a notice by–

(i) taking, or refraining from taking, the steps specified in a compliance notice, or

(ii) paying into a pension scheme an amount in respect of relevant contributions that had not been paid, as specified in an unpaid contributions notice.

(4) In this regulation, “interest” means simple interest calculated from day to day.