Auto enrolement whats did you do?
Discussion
It all seems to be rather confusing doesn't it? Asked my accountant who wasn't much help to be honest. I've set up a pension anyhow as now I am over 40, I thought it was about time I started one. 
No idea how I go about letting the pensions regulator know I have one now or whether my pension even qualifies for the purposes of getting me off the hook in terms of auto-enrolment.
My missus also works for the company but she will be opting out. Again the process for her to do this is about as clear as mud. In short it's a bit a cluster f
k if you ask me. Yet another ill thought out policy by the powers that be but they have to get people off the state pension somehow as they can't afford it.
No idea how I go about letting the pensions regulator know I have one now or whether my pension even qualifies for the purposes of getting me off the hook in terms of auto-enrolment.
My missus also works for the company but she will be opting out. Again the process for her to do this is about as clear as mud. In short it's a bit a cluster f
k if you ask me. Yet another ill thought out policy by the powers that be but they have to get people off the state pension somehow as they can't afford it.
Guvernator said:
It all seems to be rather confusing doesn't it? Asked my accountant who wasn't much help to be honest. I've set up a pension anyhow as now I am over 40, I thought it was about time I started one.
No idea how I go about letting the pensions regulator know I have one now or whether my pension even qualifies for the purposes of getting me off the hook in terms of auto-enrolment.
My missus also works for the company but she will be opting out. Again the process for her to do this is about as clear as mud. In short it's a bit a cluster fk if you ask me. Yet another ill thought out policy by the powers that be but they have to get people off the state pension somehow as they can't afford it.
looks like a car crash to me surprise surprise I asked a local IFA what it would cost to set up (we have 5 employees) and me as director he has said £500 which I thought was ok..No idea how I go about letting the pensions regulator know I have one now or whether my pension even qualifies for the purposes of getting me off the hook in terms of auto-enrolment.
My missus also works for the company but she will be opting out. Again the process for her to do this is about as clear as mud. In short it's a bit a cluster f
k if you ask me. Yet another ill thought out policy by the powers that be but they have to get people off the state pension somehow as they can't afford it.
The Pension Regulator website states categorically that a single director company does not have to set up an auto-enrolment scheme.
It is a lot more vague if there are two or more directors.
In reality, the legislation says that an auto enrolment scheme should be set up if an employment contract is in place for directors and/or employees.
The legislation does nothing to explain what it means by "an employment contract" but instead relies on HMRC's understanding of how they resolve this issue. The first thing HMRC says is that an employment contract can exists EVEN IF NOTHING EXISTS IN WRITING.
This whole legislation is poor. sloppy and misleading and will eventually lead to many business facing fines from the Pension Regulator even if they thought they were exempted.
It is a lot more vague if there are two or more directors.
In reality, the legislation says that an auto enrolment scheme should be set up if an employment contract is in place for directors and/or employees.
The legislation does nothing to explain what it means by "an employment contract" but instead relies on HMRC's understanding of how they resolve this issue. The first thing HMRC says is that an employment contract can exists EVEN IF NOTHING EXISTS IN WRITING.
This whole legislation is poor. sloppy and misleading and will eventually lead to many business facing fines from the Pension Regulator even if they thought they were exempted.
Eric Mc said:
The Pension Regulator website states categorically that a single director company does not have to set up an auto-enrolment scheme.
It is a lot more vague if there are two or more directors.
In reality, the legislation says that an auto enrolment scheme should be set up if an employment contract is in place for directors and/or employees.
The legislation does nothing to explain what it means by "an employment contract" but instead relies on HMRC's understanding of how they resolve this issue. The first thing HMRC says is that an employment contract can exists EVEN IF NOTHING EXISTS IN WRITING.
This whole legislation is poor. sloppy and misleading and will eventually lead to many business facing fines from the Pension Regulator even if they thought they were exempted.
Wow great Info Eric how do I get an answer for sure It is a lot more vague if there are two or more directors.
In reality, the legislation says that an auto enrolment scheme should be set up if an employment contract is in place for directors and/or employees.
The legislation does nothing to explain what it means by "an employment contract" but instead relies on HMRC's understanding of how they resolve this issue. The first thing HMRC says is that an employment contract can exists EVEN IF NOTHING EXISTS IN WRITING.
This whole legislation is poor. sloppy and misleading and will eventually lead to many business facing fines from the Pension Regulator even if they thought they were exempted.
lexi 1 said:
Wow great Info Eric how do I get an answer for sure
I think no one will know the true position until some court cases happen a couple of years down the line. When legislation is sloppily written, it often requires court cases to get clear answers.What is your company set up?
Is it a sole director company?
Is it a multiple director company?
Does it have any employees other than directors?
Eric Mc said:
I think no one will know the true position until some court cases happen a couple of years down the line. When legislation is sloppily written, it often requires court cases to get clear answers.
What is your company set up?
Is it a sole director company?
Is it a multiple director company?
Does it have any employees other than directors?
ltd companyWhat is your company set up?
Is it a sole director company?
Is it a multiple director company?
Does it have any employees other than directors?
me sole director
wife as secretary
four employees
Also worth being aware that there are earnings thresholds for auto enrolment - an employee on less than £10k per year doesn't trigger auto enrolment: http://www.thepensionsregulator.gov.uk/automatic-e...
I've just been through the process and all my employees are below that, and the website said I didn't need to register for autoenrolment.
I can see where this is all going - a means to eradicate the state pension in about 40 or 50 years from now.
I've just been through the process and all my employees are below that, and the website said I didn't need to register for autoenrolment.
I can see where this is all going - a means to eradicate the state pension in about 40 or 50 years from now.
We use People's Pension. They helped with setup. We use Iris payroll (Earnie), and it has worked well after initial teething issues.
I read, re-read and read again all the pension regulators guidance. Much of it didn't apply, and some of it was contradictory (which they subsequently admitted).
We pay a monthly subscription to Iris for use of their Open Enrol portal, which in combination with the payroll software handles communications etc.
In the end setup didn't cost anything, ongoing subscription is necessary for us as we have a fairly high turnover of staff (Hospitality). My advice is start now, read up and setup. You mustn't offer any advise to your staff, instead refer them to your chosen provider for info re auto-enrol, opt in or opt out. Sort out a paper trail for each employee as well so their pension position is kept up to date in physical HR files too.
Those that opt out get automatically re-enrolled every three years.... Oh joy.
I read, re-read and read again all the pension regulators guidance. Much of it didn't apply, and some of it was contradictory (which they subsequently admitted).
We pay a monthly subscription to Iris for use of their Open Enrol portal, which in combination with the payroll software handles communications etc.
In the end setup didn't cost anything, ongoing subscription is necessary for us as we have a fairly high turnover of staff (Hospitality). My advice is start now, read up and setup. You mustn't offer any advise to your staff, instead refer them to your chosen provider for info re auto-enrol, opt in or opt out. Sort out a paper trail for each employee as well so their pension position is kept up to date in physical HR files too.
Those that opt out get automatically re-enrolled every three years.... Oh joy.
mjb1 said:
Also worth being aware that there are earnings thresholds for auto enrolment - an employee on less than £10k per year doesn't trigger auto enrolment: http://www.thepensionsregulator.gov.uk/automatic-e...
I've just been through the process and all my employees are below that, and the website said I didn't need to register for autoenrolment.
I can see where this is all going - a means to eradicate the state pension in about 40 or 50 years from now.
I think you misunderstand that.I've just been through the process and all my employees are below that, and the website said I didn't need to register for autoenrolment.
I can see where this is all going - a means to eradicate the state pension in about 40 or 50 years from now.
Although the auto enrolment requirement trigger is indeed £10,000 pa, you still need a workplace pension arrangement in place because any employee can demand to join it.
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