The Pensions Regulator (Employer Resources Test) Regulations 2021
| Jurisdiction | UK Non-devolved |
| Citation | SI 2021/1047 |
| Year | 2021 |
2021 No. 1047
Pensions
The Pensions Regulator (Employer Resources Test) Regulations 2021
Made 15th September 2021
Coming into force 1st October 2021
The Secretary of State for Work and Pensions makes the following Regulations1in exercise of the powers conferred by sections 38E(2) and 315(2), (4) and (5) of the Pensions Act 20042.
In accordance with section 317(1) of the Pensions Act 2004, the Secretary of State has consulted such persons as she considers appropriate.
A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament in accordance with section 316(2) of the Pensions Act 20043.
Citation and commencement
1. These Regulations may be cited as the Pensions Regulator (Employer Resources Test) Regulations 2021 and come into force on 1st October 2021.
Interpretation
2.—(1) In these Regulations—
“the Act” means the Pensions Act 2004;
“the 2006 Act” means the Companies Act 20064;
“accounting reference date” is determined in accordance with paragraph (2);
“annual accounts” has the meaning given in section 471 of the 2006 Act5;
“charity” has the meaning given in section 1(1) of the Charities Act 20116or the meaning given in section 106 of the Charities and Trustee Investment (Scotland) Act 20057(as applicable);
“assessment period” means—
(a) subject to (b), the period of 12 months ending on the relevant accounting reference date;
(b) where the employer’s annual accounts cover a period ending not more than seven days either before or after the relevant accounting reference date, a period of no less than 51 weeks and no more than 53 weeks beginning on the day immediately after the previous accounting reference date;
“relevant accounting reference date” means the employer’s most recent accounting reference date immediately prior to the relevant time8.
(2) Subject to regulation 4(7), the accounting reference date is to be determined in accordance with sections 391 and 392 of the 2006 Act.
3.—(1) For the purposes of these Regulations—
(a)
(a) in the case of an employer which is—
(i) not trading for profit; or
(ii) a charity,
any reference to “profits” in these Regulations shall be read as if it referred to “net income”;
(b)
(b) the value of the resources of the employer may be a negative number.
(2) In this regulation, “net income” means income after the deduction of expenditure.
Constitution and value of employer resources
4.—(1) For the purposes of section 38E(2)(a) of the Act (Section 38 contribution notice: meaning of “employer resources test”), what constitutes the resources of the employer are the profits of the employer before tax.
(2) For the purposes of section 38E(2)(b) of the Act and subject to paragraph (5), the value of the resources of the employer is to be determined, calculated and verified as follows—
(a)
(a) the value of the resources of the employer excluding the effect of the act or failure to act is the profits before tax as stated in the annual accounts of the employer for the assessment period, adjusted to exclude the effects of non-recurring or exceptional items;
(b)
(b) the value of the resources of the employer including the effect of the act or failure to act is the profits before tax as stated in the annual accounts of the employer for the assessment period, adjusted to—
(i) exclude the effects of non-recurring or exceptional items; and
(ii) account for any effect of the act or failure to act on the value of the resources of the employer as if the act had occurred or the failure first...
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