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Auto enrolment without a PAYE scheme?

Auto enrolment without a PAYE scheme?

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I have a client with a number of part time employees paid below the LEL (under £112 pw).

All his employees have completed New Starter Checklists (previously P46) to indicate no other employment, taxable state benefits or pensions.

As a result, he does not have a PAYE scheme.

I have two questions as follows:

1) Is there any official guidance regarding how frequently the employees should be asked the questions on the New Starter Checklist? So an employee could sign statement A or B accurately and in good faith at the commencement of the employment but then start another job as well or receive pension income at a later date. My client would most probably then have an obligation to register as an employer and operate a PAYE scheme for all his employees- a huge additional burden for a very small business. Would a signed New Starter Checklist, dated over 12 months ago provide him with protection if challenged by HMRC in these circumstances?

2) Am I correct in thinking that my client has no requirement to take any action in relation to Auto enrolment? Clearly all his employees earn below £10,000. However, is this one of those situations where you have to register and then prove it doesn't apply? Presumably registration would be impossible however without a PAYE reference......

I would be most grateful for any guidance readers can offer.

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Euan's picture
By Euan MacLennan
10th Feb 2016 11:34

A couple of answers
Yes - the guidance is that a Starter Checklist should be completed whenever a person starts a new employment.  It would be ludicrous for an existing employee to have to complete a Starter Checklist every year.  The client is entitled to rely on the original Starter Checklist unless notified otherwise by HMRC.No - the client still has statutory obligations under the Pensions Act 2008.  He must assess all his staff at the staging date of 1st April 2017 (for employers without a PAYE scheme) and send every one of them the appropriate letter to say that they have not been enrolled into a pension scheme.  He must then assess his staff in every subsequent pay period and if there are any new employees, send them the 'not enrolled' letter.  He must notify compliance to TPR by 31st August 2017 (5 months after his staging date).

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10th Feb 2016 12:29

Agree with above
Totally agree with above comments

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