Technical Update From Mark Cardy
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:
Automatic enrolment duties will apply if more than one director has a contract of employment.
What do you need to do?
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:
If one of you is a director and the other is not:
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 some of you are directors and some are not:
In all of the above examples if you believe you don’t have automatic enrolment duties you will need to inform TPR in writing.
for further help on meeting your obligations you can contact Mark Cardy at Skerritts on 01273 204999 or firstname.lastname@example.org
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.