You may have received a letter from the Pension Regulator telling you to prepare for auto-enrolment of employees into a pension scheme. There is no need to be alarmed, as your company may well be exempt from the auto-enrolment requirements.
A company/employer is exempt if it does not have any “workers” at its staging date. The staging date is the date which the employer must have a pension scheme ready for employees to enrol in.
A company director is not a “worker” if he or she does not have a contract of employment with the company. A company with no staff other than its directors has no obligations under auto-enrolment if any of the following apply:
- It has only one director
- It has a number of directors, but none of these directors has an employment contract
- It has a number of directors, only one of whom has an employment contract.
The Pensions Regulator does not know which of the directors in your company has employment contracts. It is also basing its letter on payroll data supplied by HMRC back in April 2012.
If your company meets the conditions above, you should confirm to the Pensions Regulator that you have no obligations for auto-enrolment by e-mail to: [email protected]. This should open a structured email in which you need to insert your PAYE reference, Companies House reference, and the letter code from the Regulator’s letter.
If your company does have staff other than its directors, you should talk to us about what preparations you need to make to get ready for auto-enrolment.