Pensions Auto Enrolment for Sole Traders | AccountingWEB

Pensions Auto Enrolment for Sole Traders

I have been researching the rules on Pension Auto Enrolment due to come into effect from 2012 onwards in order that I can alert my clients to the changes.  I have a number of clients who are either incorporated or non-incorporated sole traders, ie if incorporated they are the sole shareholder, director and employee of their own company.  Some of these clients have adequate personal pensions arrangements outside of their company structure either through personal pensions plans or previous occupational schemes, so they would not necessarily benefit from having to auto enrol in an new employer scheme or NEST.

I have seen comments to the effect that sole traders who do not employ anyone else do not have to enrol themselves in a pension scheme.  However, I cannot find the same information explicitly on any of the official or seemingly knowlegeable websites.  Can anyone advise whether it is correct that sole traders who only employ themselves are exempt from the rules, and could you please point to a corroborating source for this which I could quote to my clients?  Many thanks.



talkinpeace | | Permalink

NEST pensions are for employees and employers

Auto enrollment date is based on the PAYE scheme Accounts office reference.

Without one of those you are not part of NEST


talkinpeace | | Permalink

But frankly, having been looking into NEST pensions for a charity of which I am a trustee, they look like a big pile of .......

The fees are set at 1% "depending on market conditions" which is unlikely to mean they will go down

there is NO guarantee that the invested funds will not tank - as those of many people have over the last 15 years

and if the takeup rates are no good the whole thing becomes a joke.

Personally I'd rather get my ISA allowance filled up that I can check on each year rather than trust the boys in red braces .......

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A place to discuss all matters affecting sole traders and self employed workers, such as registering for SE, dealing with HMRC, and issues surrounding