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Are you a limited company with only your directors working your business?

Pensions l

PensionWhether or not you are in favour of it, auto enrolment is becoming reality, with all businesses due to be enrolled by early 2018.

Whether your company employs one person or one hundred persons you are legally required to put a workplace pension scheme in place. However, if your business comprises only of Directors you are not necessarily required to operate the scheme.

Auto enrolment is complex with lots of questions to answer, not only to ensure that you are compliant, but also to ensure that you avoid taking a costly decision which could see your business making contributions to a scheme which aren’t necessary.

You are exempt from auto enrolment if the only people working for your business are:

  1. you as the sole director;
  2. a number of directors, none of whom has an employment contract;
  3. or a number of directors, only one of whom has an employment contract.

Auto enrolment will apply if more than one director has an employment contract. In that case, the company will have auto-enrolment duties to those directors who have employment contracts.

 

For more assistance on your auto-enrolment obligations, staying compliant and avoiding unnecessary expense contact Martin Poole at Morrell Middleton on 01904 691141.

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