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News » Technical Updates » Pensions Automatic Enrolment - Just Make The Problem Go Away!

Technical Update From Mark Cardy
November 2015

Pensions Automatic Enrolment - Just Make The Problem Go Away!

Now that Pensions Automatic Enrolment is starting to become a reality for lots of smaller companies we are starting to receive a lot of questions from owner manager directors about how they “ just make the problem go away!”

Whilst the appeal of pensions has increased, especially for Directors with the new flexibilities, the questions tend to fall into a handful of main categories.

The Pensions regulator has put together a useful video as an overview Automatic enrolment duties for sole directors

What if I don't have any staff?

Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:

you’re a sole director company, with no other staff
your company has a number of directors, none of whom has an employment contract
your company has a number of directors, only one of whom has an employment contract
your company has ceased trading
 your company has gone into liquidation
your company has been dissolved
you no longer employ people in your home (cleaners, nannies, personal care assistants, etc)

Automatic enrolment duties will apply if more than one director has a contract of employment.

You can find more information about your duties if you're a director in automatic enrolment enquiries.
You can find more information about employment contracts on the employment status section of the GOV.UK website.

What do you need to do?

If one of the reasons above applies to you and you have received a letter from TPR, tell them you are not an employer by using their online form.
 If you no longer employ people in your home (cleaners, nannies, personal care assistants, etc) then please email them to confirm.
Tell TPR you're not an employer you’ll need your letter code, PAYE reference and Companies House number.
If your circumstances change so that automatic enrolment duties apply to you, you’ll need to inform them of this as soon as possible, For example if you took on a member of staff other than a director, or if at least two directors started working for you under contracts of employment.

I'm the only director of my own company - do automatic enrolment duties apply to me?

If you are the sole director and there are no other staff working for you, the company does not have automatic enrolment duties.

We're a husband and wife company - do automatic enrolment duties apply to us?

If no one else is working for the company, it will depend on your roles and if you have employment contracts, as to whether you have automatic enrolment duties or not.

If you are both directors:

The company will have automatic enrolment duties for both of you if both of you have employment contracts.
The company won’t have any automatic enrolment duties if only one of you has an employment contract, or neither of you has.

If one of you is a director and the other is not:

The company will have automatic enrolment duties for the person who isn’t a director.
 If you both have contracts of employment, the company will also have automatic enrolment duties for the person who is a director.

We're a family business - do automatic enrolment duties apply to us?

If no one else is working for the company, it will depend on your roles and if you have employment contracts, as to whether your company has automatic enrolment duties or not.

If you are all directors:

If you all have employment contracts, the company will have automatic enrolment duties for all of you.
 If at least two of you have employment contracts, the company will have automatic enrolment duties for all those who do.
The company won’t have any automatic enrolment duties if only one of you has an employment contract, or none of you has.

If some of you are directors and some are not:

The company will have automatic enrolment duties for all those who aren’t directors.
If at least two of you have employment contracts (whether directors or not), the company will also have automatic enrolment duties for any director who has an employment contract.

In all of the above examples if you believe you don’t have automatic enrolment duties you will need to inform TPR in writing.

OR

for further help on meeting your obligations you can contact Mark Cardy at Skerritts on 01273 204999 or mark.cardy@skerritts.co.uk

Please note that these are our opinions and for information only. The content should not be taken as a recommendation of any investment and does not constitute advice

The value of investments can fall as well as rise and past performance is not a guide to the future. The information contained within this document is for guidance only and is not a recommendation of any investment or a financial promotion.

 

 

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