A company has two directors, one with annual remuneration set at £8,880 and the other at £12,000.
They have taken on a first employee so auto enrolment obligations have been triggered.
My understanding is that the company has the choice of whether or not to enrol any director although they can opt in - correct?
Does the taking on of the new employee mean that the company must comminucate with the directors again setting out their option to opt in?
Replies (6)
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I directed you to (the) TPR site 3 days ago and would guess you’ll find the answer there.
Whether or not to enrol any director (or employee) is *never* simply a choice for the company (aka employer).
If the circumstances/rules require it then the employee must be auto-enrolled (even if he/she subsequently opts out); and if, despite not being auto-enrolled, the employee makes a valid opt-in request then the employer must comply.
Those are, of necessity, a simplified version of the main concepts. As David says, the TPR site has a lot more information - and as an organisation they're usually happy to explain the relevance if you ask them.
Well I did say that my summary was "a simplified version of the main concepts"!
So well done for jumping into research/reading mode.
However the lengthy extract that you quote reads to me as though it is describing the situation at the initial staging - and solely in terms of whether or not a DoC is required. Is that the case, or am I reading too much between the lines?
If so, it doesn't seem relevant to your situation as you passed that point a while ago ... other than the final sentence which says, in your scenario, you don't need to submit a new DoC but do need to inform TPR that AE duties now apply to your organisation.
EDIT: However ...
as per your response below to DKB-Sheffield my reading of the final extract that you've quoted indicates that your ".. first step (should) be to determine whether the director falls within the definition of a worker. It is only if they do that this exception to the automatic enrolment and automatic re-enrolment duties applies."
There are a lot of refs to sections/paras within other section/paras for when you attempt to tease out the precise scenario here ... but in terms of your initial query (whether the organisation becoming subject to AE duties has any impact on its duties for a director not previously deemed to be entitled to AE?) is I feel a question best raised direct with TPR.
That's not to take away from your research (which is always a useful part of learning) ... but relying on the opinion of a public forum stranger (however well-intentioned) is not going to ensure that you comply with TPR's expectations.
Is this the first time you have dealt with pensions? I'm sure it's not but, 2 questions may suggest otherwise.
If it is however, I highly recommend you check out the guidance specific to advisers* here...
https://www.thepensionsregulator.gov.uk/en/business-advisers
You should also check out the employer and adviser sections of the pension provider advice (e.g. NEST).
As you've asked 2 questions on pensions in 3 days, a good bit of reading (and potentially some CPD) would certainly seem beneficial.
* Note to self... I've just realised I've been spelling adviser the US way for years! Not good for a tax adviser!