Auto Enrolment

You may have read or heard a few things about autoenrolment – the following is how I understand things, having looked into it and having talked the provisions of autoenrolment through with my IFA – after he has researched into it and after he has contacted the Pensions Regulator directly for advice:

One person ltd companies are outside the scope of the current legislation and as such do not need to autoenrol. Also, if they have their spouse/partner/son etc also on the payroll and there is no contract of employment in place, they are still outside the scope of autoenrolment.

However: all contractors will still be sent letters sooner or later, so my advice is that you email the Pensions Regulator, telling them the PAYE Reference numbers of the company, explaining that they are a one-person ltd company (and if so, also have their spouse on the company’s payroll) and are therefore outside the scope of autoenrolment. Also add that if the company does employ someone on a contract of employment in the future they will let the Pensions Regulator know. Failure to email will result in chase-up letters/threatening letters being sent out to contractors by the Pensions Regulator. Their  Email address is customersupport@autoenrol.tpr.gov.uk       

By emailing, like I say, this should stop the regulator writing to you and giving you notice of your staging date (the date which you must have auto enrolment live and running). If you do not advise the regulator you will receive at least 3 letters and then it is possible that a fine could follow for taking no action in the matter and ignoring the letters.  The same could also happen if you  do have a change of circumstances and do not report it to the regulator.

When emailing the pensions regulator you need to confirm that the sender will be the nominated “person” to deal with auto enrolment should it be required – this will be good so that updates can be sent to the sender.