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Our latest Blogs about Auto-Enrolment


Employing your spouse? You are still an employer

I met a lovely chap this week, he was a doctor and I had met with him to talk about a workplace pension for his team of medical secretaries.

Whilst we were chatting, he mentioned that he, like many other GPs and consultants, employed his wife as an administrator.  His accountant had advised him that this would be beneficial for tax purposes.  What he hadn’t realised, was that because he paid his wife more than £10,000 a year, he would also need to set up a workplace pension for her.

As this arrangement had been in place for sometime (before April 2012), his Staging Date, the date by which he has to set up a pension scheme, could be anywhere between 1 June last year and 1 April 2017, depending on his PAYE reference.

This doctor has the same duties to his wife as a traditional business, such as coffee shop  or estate agent, with employees.  He must set up a workplace pension scheme enrol his wife, deduct pension contributions from her pay and pay employer contributions on top of her salary.

If he fails in this duty, then The Pensions Regulator has the power to levy some pretty hefty fines.

Hopefully, I made him aware in time, and his staging date hasn’t yet passed, but I’m still waiting to hear.

Even if his wife earned less than £10,000 a year, he would still need to take some action.  See my earlier blog  “I don’t think any of my staff are eligible for Auto-Enrolment, do I need to do anything?”

If you think you might need to set up a scheme, or would like to talk through your circumstances, please give us a call on 0800 160 1233.  We’ve got lots of useful information and guidance on our website if you need it:http://www.aefasttrack.com/


I’m a Director, do I need to be Auto-Enrolled?
 

The rules for directors are complicated, it depends on your circumstances.  We’ve put together these handy hints to point you in the right direction.

Are you the sole director of a limited company?

If you are the only director and do not have any employees, you do not need to set up a pension scheme or be auto-enrolled yourself.   

Do you have a contract of employment?

As a joint director, if you do not have a contract of employment (written or verbal) with your business then you don’t need to be auto-enrolled.

If you do have a contract of employment, does anyone else in the business?

If the answer is no (for example, there are 3 directors only and only you have a contract of employment) then you don’t need to be auto-enrolled.

If you have a contract and there is at least one other person who has a contract of employment (director or employee), then you may need to set up a scheme and be auto-enrolled.  This will depend on your earnings and age.

It gets a bit more complicated if you employ contractors (Personal Service Workers), there’s a useful video from The Pensions Regulator, which also covers directors, here: https://youtu.be/-YnXLS6N880

What to do next

If you have determined that you do not have any auto-enrolment duties, you need to tell The Pensions Regulator that you are not an employer before your Staging Date. https://automation.thepensionsregulator.gov.uk/notanemployer

You will need your Letter Code and PAYE reference.  Your Letter Code can be found on any correspondence with The Pensions Regulator.

If you think you might need to set up a scheme, or would like to talk through your circumstances, please give us a call on 0800 160 1233.  We’ve got lots of useful information and guidance on our website if you need it: http://www.aefasttrack.com/


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