Wife employed. Auto enrolment duties?

Does sole trader employing wife need to auto enrole?

Didn't find your answer?

Probably a very basic question but I can't see an answer on the Pension Regulators website.

A sole trader client employs his wife. Her salary is below the NI limit ( she is paid £702 per month ) and she has no contract of employment.  Does the client have any automatic enrolment duties at all ?

Obviously not if he were trading through a limited company, but I can't find any advise on the Pension Regulators website about sole traders.

Thanks

 

Replies (5)

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JCACE
By jcace
26th Apr 2018 12:07

I would have thought that, just like a company, the S/T will have duties, but not be obliged to enrol, unless requested. He will therefore need to advise TPR how he has complied by completing a declaration of compliance. I am not aware of any exemption for family members.
You say she has no contract of employment, but this can be oral or implied, and you need to make sure that the payments made to her are for work done, rather than simply a gift.
The S/T will also be obliged to operate a PAYE scheme for the payments to the wife, as they are above the LEL.

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Replying to jcace:
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By sadler14
27th Apr 2018 10:22

Thanks jcace, that is exactly what I thought. I filed a declaration of compliance for him, but he then told me that he had 'phoned the Pensions Regulator who had informed him that he didn't need to do anything and they have now cancelled the declaration off their system. I thought that he may have used the term "my company" during his conversation, in which case I could understand their decision, however I've spoken to them myself and been told the same thing.
The whole thing is a nonsense since no pension contributions will ever be paid, but it seems to me that the P R advice isn't right.

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By Matrix
26th Apr 2018 22:22

The rules apply to an employer and do not differentiate between a limited company and a sole trader.

She is an entitled worker so should be given the option to join a scheme. If she wishes to join then the employer has to set up a scheme. I assume she is not an officer of the company since you did not say so.

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Replying to Matrix:
ALISK
By atleastisoundknowledgable...
26th Apr 2018 23:27

Matrix wrote:

I assume she is not an officer of the company since you did not say so.

Which company?

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Replying to Matrix:
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By jpcentral
27th Apr 2018 07:22

Isn't she classified as "Non-Eligible" with a salary of £702 per month?

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