Auto Enrolment no PAYE Scheme

Auto Enrolment no PAYE Scheme

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I have a client with no PAYE scheme, purely because he has three employees working very much part-time, paid circa £40 a week.

From the Pension Regulator site I can see such an employer has a staging date of 1st April 2017. I have tried to register a contact by ticking the "select this box if you don't have a PAYE scheme" but it still needs a letter reference. How can a letter reference be issued if the authorities don't know he has any employees?

I emailed the Regulator some weeks ago but needless to say had no reply yet.

Has anyone else come across this scenario?

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Euan's picture
By Euan MacLennan
04th Apr 2015 17:35

No, but why are you bothered?

If none of the employees earns more than the NI LEL - and £2,000 a year is well below it - they would only be 'entitled workers', which means they could do no more than ask their employer if they could join a pension scheme, which would not have to be AE compliant and the employer would not have to contribute.  The employer's only responsibilities would be to notify the employees of their position and to deduct and pay over their contributions if they choose to join a pension scheme.

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Replying to lionofludesch:
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By cstwragby
04th Apr 2015 21:34

Thank you for your reply.

I felt that in this case the employer had to still register with the Pension Regulator and showed he had asked all the employees if they wanted to join a scheme.

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