Originally posted by TheCyclingProgrammer
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One man band LTD company & Auto Enrolment in a pension scheme
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Originally posted by Forbes Young View PostAs I understand it, if the two spouses are owners/directors (and without contracts of employment of course), then the amount of salary they take is irrelevant.
Although the notes referred to them, I didn't see any threshold figures on salary levels either.
Where are the Accountants on CUK when you need them? Any other time they're all over stuff like a rashClarity is everythingComment
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Originally posted by Forbes Young View PostAs I understand it, if the two spouses are owners/directors (and without contracts of employment of course), then the amount of salary they take is irrelevant.Comment
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Originally posted by SteelyDan View PostHmm not sure, unless I've misread the notes, there is no requirement for a physical 'contract' to be in place, but if you/your wife are drawing a salary then an 'implied' contract exists.
Although the notes referred to them, I didn't see any threshold figures on salary levels either.
Where are the Accountants on CUK when you need them? Any other time they're all over stuff like a rash
Automatic enrolment earnings threshold | The Pensions Regulator
They appear to be inline with the personal tax allowance.
I don't think receiving a salary automatically implies that the person is a worker. It's not unreasonable to receive a basic salary related to your role as company officer. Nevertheless, if the salary is below the above thresholds I don't think there is any requirement to auto enroll, although I think technically your spouse should have the option to opt in.Comment
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I guess this might be worh pointing out: even if auto enrolment doesn't apply to us, it looks like we might have to submit this declaration of compliance. Anybody know about this?
Automatic Enrolment Declaration of compliance (registration) | The Pensions Regulator
Looks like we still have 3 years until this becomes relevant anyway.Comment
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Originally posted by SteelyDan View Post
Where are the Accountants on CUK when you need them? Any other time they're all over stuff like a rash
My understanding is that:
1 a director or secretary, collectively "officer" can receive a salary without having a contract of employment. In whch case AE doesn't apply regardless of numbers of officers and salary amounts
2 a non officer, eg spouse on a salary but not appointed as secretary - brings the company into AE - contract can be written on verbal, but as the person is not an officer it is employed there must be a contract.
I'm going to get my tax manager to specifically ask TPR to confirm our understanding on this
Originally posted by TheCyclingProgrammer View PostI guess this might be worh pointing out: even if auto enrolment doesn't apply to us, it looks like we might have to submit this declaration of compliance. Anybody know about this?
Automatic Enrolment Declaration of compliance (registration) | The Pensions Regulator
Again getting my office to check with TPR
Its a nuisance if all one person / officer only companies need to do this if they are otherwise outside AE.
The alternative may be that a one person / officer only company just ignores AE and declaration, and if TPR sent an enforcement letter of some sort, reply with "we are exempt". Not ideal.
It may well be that with the bulk of small companies not yet in AE the TPR hasn't thought the practicalities through yet.Comment
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Originally posted by Jessica@WhiteFieldTax View PostHiding as we don't fully understand either
My understanding is that:
1 a director or secretary, collectively "officer" can receive a salary without having a contract of employment. In whch case AE doesn't apply regardless of numbers of officers and salary amounts
2 a non officer, eg spouse on a salary but not appointed as secretary - brings the company into AE - contract can be written on verbal, but as the person is not an officer it is employed there must be a contract.
I'm going to get my tax manager to specifically ask TPR to confirm our understanding on this.
So based on the above understanding (& pending confirmation), in my circs;
- Wife is officer (company secretary) & receives salary, but there is no contract of employment, apart from one that is 'implied' as she receives a salary from MyCo.
- I am officer (Co Dir) & receive salary.
AE doesn't apply according to your current understanding?Clarity is everythingComment
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I think that's the case, but need to check with TPR.
It's hoop jumping. You and her can opt out anyway, it's just how much paperwork is needed to get there.Comment
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Originally posted by Jessica@WhiteFieldTax View PostHiding as we don't fully understand either
My understanding is that:
1 a director or secretary, collectively "officer" can receive a salary without having a contract of employment. In whch case AE doesn't apply regardless of numbers of officers and salary amounts
2 a non officer, eg spouse on a salary but not appointed as secretary - brings the company into AE - contract can be written on verbal, but as the person is not an officer it is employed there must be a contract.
I'm going to get my tax manager to specifically ask TPR to confirm our understanding on this
Its my reading as well, I noticed it when I revisited AE last week having let it stew for a year. In which case to do the Declaration you have to nominate a pension scheme as well which, I presume, means registering with NEST or similar.
Again getting my office to check with TPR
Its a nuisance if all one person / officer only companies need to do this if they are otherwise outside AE.
The alternative may be that a one person / officer only company just ignores AE and declaration, and if TPR sent an enforcement letter of some sort, reply with "we are exempt". Not ideal.
It may well be that with the bulk of small companies not yet in AE the TPR hasn't thought the practicalities through yet.
~ companies whose payroll comprises one director only, with any other directors or secretaries unpaid can notify the Pension Regulator by email that they are exempt from Auto Enrolment
~ companies with two people on payroll, regardless of salary levels and officer status need to register with TPR and nominate a pension scheme, eg Nest, even if salaries are below thresholds.
In summary the only exemption from registration and nomination of a pension scheme is where there is only one person on the payroll and they are a director.
This is our current understanding from talking to TPR. How it pans out n practice, well, anyone's guess.Comment
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