No this isn't a question about whether directors are subject to auto-enrolment - that's been well covered e.g. here.
What I haven't seen discussed is whether director-only companies might benefit from auto-enrolment. Assuming the director earns over £833 a month:
- The company must contribute to the pension
- This money is taken legitimately out of the company
- Thus reducing profits and therefore corporation tax
- The director also gets tax relief on the ee's contribution.
As a payroll person this seems like a win/win.
I'm interested in what accountants and tax advisers think of this. Any drawbacks?