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How does auto-enrolment impact on owner employee and other smaller businesses?

Accounting, Businesses, Law, Pensions l

PensionWith the implementation of Auto-Enrolment Pension schemes now well underway across the UK, one common query we receive is “Is our business caught by this?” (may be not the way we should be viewing pensions?!), especially from companies where the only people involved are the 2 owner/directors – often spouses/partners.

The Pensions Regulator offers a useful quick guide as follows:

“Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:

  • you’re a sole director company, with no other staff
  • your company has a number of directors, none of whom has an employment contract
  • your company has a number of directors, only one of whom has an employment contract
  • your company has ceased trading
  • your company has gone into liquidation
  • your company has been dissolved

Automatic enrolment will apply if more than one director has a contract of employment.”

The above doesn’t mean that you can ignore the letters from The Pension Regulator. You still need to register your contact details with them.

If you require assistance or have queries regarding auto-enrolment please contact our team at Morrell Middleton on 01904 691141 or post@morrell-middleton.co.uk

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