Another AE question

Another AE question

Didn't find your answer?

So there is really no requirement to implement a PAYE scheme if the employee is paid less than £112 per week,

But they can opt into a work place pension, even thought the employer does not contribute.

So how can you run a WPPS without a PAYE scheme.

Have i missed something.

Replies (2)

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the sea otter
By memyself-eye
28th Aug 2015 10:05

why don't they (the employee/s)

set up and pay into a private pension?

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Euan's picture
By Euan MacLennan
28th Aug 2015 11:23

Cannot opt in

Only employees paid more than the NI LEL of £112 a week in 2015/16 - defined as "Non-eligible jobholders" - have the right to opt in to their employer's AE compliant pension scheme.  An employee paid less than the NI LEL is defined in AE mumbo-jumbo as an "Entitled worker" - they have the right to ask their employer to administer a pensions scheme for them (i.e: deduct their contributions from their wages and pay them over to the pension company), but the pension scheme does not have to be AE compliant and the employer does not have to contribute.

So, as Memy says, it is effectively a private pension.

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