If you are a sole Director company you are not obliged to set up a workplace pension as you are responsible for your own pension provision. If your business model changes and you employ only one person you must set up a workplace pension, it’s the Law
This is not quite as straightforward, as your business grows you may take on other persons and appoint them also as Directors presuming this will not require you to provide a workplace pension. Let’s say you appoint your husband or wife as a Director and offer a contract of employment then you still do not have to offer a scheme.
But if your daughter or another person becomes a Director and you offer them a contract of employment then you will be required to put in place a compliant workplace pension scheme as two or more Directors with a contract of employment deems them to be classed as ‘workers’ and as such this means you must have a workplace pension and Auto Enrol them both if they meet the salary and age criteria. More complex than you thought! Which is why we can help you ensure your business is compliant and your situation does not put you at risk of non-compliance 6 months later and you incur fines and have to make back-dated pension contributions.
Seek Help and be sure of the facts.
If you are confident you do not qualify for Auto Enrolment as a sole director company CLICK HERE TO INFORM THE REGULATOR
In accordance with the Pension Act 2008. Auto Enrolment of all businesses now applies to all small micro businesses as from June 1st 2015
The primary purpose is to encourage employers to positively embrace the benefits of offering a work place pension that your employees are automatically enrolled to ensure their participation for their future.
Employees will be able to move from job to job with their own work place pension – Portability
Employees will be encouraged to save for their future eventual retirement with tax relief on contributions – Their Pension Pot
Less Reliance upon the state and more self-reliance is a positive move forward. Pension contributions should be seen as a employee benefit not a burden.
If you would like to talk to one of our consultants for free call 020 3004 0601 or Contact Us for a call back