If your business does not directly employ anyone and you work with self-employed contractors but supply the work, handle the funds and work on a regular basis with some contractors your position is not straight forward.
You are probably not required to set up a workplace pension providing the contractors do not rely upon your business as the majority or sole provider of work.
If the contractors are on a self-employed status to pay their own taxation but rely primarily upon your business activities to secure work then the relationship between your company and your contractors is deemed that you are most likely to be responsible as their employer and provider of works and therefore liable to offer a workplace pension.
To clarify your particular situation Contact Active Enrolment for someone to call you back as this is NOT as straight forward and clear cut and to ensure your business DOES NOT fall into the category that the Pensions Regulator deems to be required by the law to offer a work place pension you should contact Active Enrolment to seek clarity and arrange for one of our trained staff to assist you.
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, gone into liquidation or has been dissolved
- Automatic enrolment will apply if more than one director has a contract of employment.
If one of the reasons above applies to you and you have received a letter from the Regulator issuing a staging date you must inform the Regulator you are an employer.
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.
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 – Pension PotLess Reliance upon the state and more self-reliance is a positive move forward and a change in culture thinking.