Has auto-enrolment tipped the scales?

Has auto-enrolment tipped the scales?

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Doing a normal limited company/partnership assessment on a new business we'll be working with shortly.

Usual situation applied - slightly better for tax to be ltd, due to software no more of a hassle really, increased level of protection and so on. 

Then it struck me: two directors on the payroll (for NI purposes at minimal salary) - would this trigger auto-enrolment pension obligations?  Even if it was just a case of getting it set up and then having to remember to opt out at regular intervals?

In marginal cases I can see this tipping the scales somewhat in terms of cost/hassle.  The only exemption I've run across so far is for one-man-bank companies with one director on the payroll.

WS.

Replies (3)

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RedFive
By RedFive
02nd Jul 2015 09:09

No
Keep searching.

As long as no employment contract then your example company is exempt.

Whether sole trader or limited makes no difference once employing someone with regards to AE.

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By Yonder Dave
02nd Jul 2015 10:55

I agree with RedFive

I think your situation is covered by item 2 on the list at: http://www.thepensionsregulator.gov.uk/employers/What-if-I-dont-have-any...

Follow the "Tell us your not an employer" link to notify TPR.

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By Willwo01
02nd Jul 2015 11:23

New Business - 2018?

As a new business, I'd expect no staging date would be in place yet and they wouldn't have to worry about this until 2017/18 anyway (see page 2 here). Depending on the business and whether they are likely to expand and therefore employ people, it may be better holding off until early 2017 to revisit.

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