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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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.
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.