One man band LTD company & Auto Enrolment in a pension scheme
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    Default One man band LTD company & Auto Enrolment in a pension scheme

    .
    It seems that The Pensions Regulator is forcing "auto enrolment" onto one man band corporations which might be caught by IR35.

    In my own situation a limited company is being established to take on work which may fall within IR35.

    Whilst HMRC can be appeased by "deemed payments"; how should I interpret these rules which are similar to IR35 rules?

    It would only be feasible for me to contribute to a scheme if it could be set-up online and credited via online banking.


    http://www.thepensionsregulator.gov....guidance-1.pdf

    Page 9 & 10.

    Personal service workers

    15.
    If an individual does not work under a contract of employment, they
    may still be assessed as a worker for the purposes of the new duties
    if they have contracted to perform work or services personally (this
    is sometimes referred to as a ‘contract of services’). However, an
    individual who is paid a fee as a self-employed contractor under a
    contract for services is not normally a worker


    One-person companies

    29.
    If an individual is a director of a company and the company has no
    other employees, that individual is not a worker by virtue of any
    office that they hold or contract of employment under which they
    work. The company is therefore not subject to the employer duties
    in relation to that individual

    30.
    However, if the company takes on a second worker, and both
    the director and the new employee work under a contract of
    employment, then both the director and the new employee will be
    workers for the purposes of the employer duties and the company
    will have responsibilities in relation to both of them.
    Last edited by desir; 8th December 2014 at 13:44.

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    I see nothing in the one person companies section that suggests a one man Ltd company director would need to auto enroll UNLESS you employ somebody else, in which case you would both be treated as workers for the purposes of auto enrolment.

    The first bit seems to only relate to self employed people, not IR35 caught directors.

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    Quote Originally Posted by desir View Post
    .
    It seems that The Pensions Regulator is forcing "auto enrolment" onto one man band corporations which might be caught by IR35.

    In my own situation a limited company is being established to take on work which may fall within IR35.

    Whilst HMRC can be appeased by "deemed payments"; how should I interpret these rules which are similar to IR35 rules?

    It would only be feasible for me to contribute to a scheme if it could be set-up online and credited via online banking.
    Ermmm...

    One man companies are out of scope.

    A one man company with an genuine employee is in scope, for the employee.

    A one man company subbing to other one-man companies is out of scope.

    So what, exactly, is the problem?
    Blog? What blog...?

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    You can still opt out of 'auto enrollment' if you want. You just have to contact the pension provider.

    Other than that, who told the OP this bollocks?
    I couldn't give two fornicators! Yes, really!

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    Quote Originally Posted by TheCyclingProgrammer View Post
    I see nothing in the one person companies section that suggests a one man Ltd company director would need to auto enroll UNLESS you employ somebody else, in which case you would both be treated as workers for the purposes of auto enrolment.

    The first bit seems to only relate to self employed people, not IR35 caught directors.
    Actually it relates to The Pensions Regulator's definition of "Worker" and would logically be a classification distinct from HMRC's IR35 guidance on deemed employment.

    Therefore the question is not "Do I fall under IR35" but "Does The Pensions Regulator classify me as a Worker?".

    http://www.thepensionsregulator.gov....guidance-1.pdf

    Page 9 & 10.

    Personal service workers

    15.
    If an individual does not work under a contract of employment, they
    may still be assessed as a worker for the purposes of the new duties
    if they have contracted to perform work or services personally (this
    is sometimes referred to as a ‘contract of services’). However, an
    individual who is paid a fee as a self-employed contractor under a
    contract for services is not normally a worker

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    How does this sit for those who have employed their spouse as book keeper/travel agent etc
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    Quote Originally Posted by desir View Post
    .
    It seems that The Pensions Regulator is forcing "auto enrolment" onto one man band corporations which might be caught by IR35.

    In my own situation a limited company is being established to take on work which may fall within IR35.

    Whilst HMRC can be appeased by "deemed payments"; how should I interpret these rules which are similar to IR35 rules?

    It would only be feasible for me to contribute to a scheme if it could be set-up online and credited via online banking.
    Autoenrolment has nothing to do with IR35.

    As far as I can make out, this won’t affect single contractor operations unless they have an employment contract with their company – and I don’t know any of our clients who have a contract of employment, so this legislation is irrelevant. In other words contractors running a single person or two person operation (with their spouse) are not under the definition of a “jobholder”.

    Always best to check things out with your IFA though, with regards to any pension question.

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    The problem arises when you use a definition that has no meaning in law e.g. PSC to describe examples in enacted legislation. People are simply confused.

    It gets worse when you muddy the waters and try to redefine a term that has a traditional meaning and try to convince employed directors that they are self employed.

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    Quote Originally Posted by desir View Post
    Actually it relates to The Pensions Regulator's definition of "Worker" and would logically be a classification distinct from HMRC's IR35 guidance on deemed employment.

    Therefore the question is not "Do I fall under IR35" but "Does The Pensions Regulator classify me as a Worker?".
    No. It is referring to "individuals" or "personal service workers". YourCo is neither of these things. That section does not apply to you. The only section that is relevant is the part under the heading "one man companies".

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    Quote Originally Posted by SimonMac View Post
    How does this sit for those who have employed their spouse as book keeper/travel agent etc
    I guess that depends how much they are paid and whether they have a contract of employment.

    If you're both paid up to the personal tax allowance I'm pretty sure its exempt.

    Some discussion here:
    http://www.accountingweb.co.uk/anyan...-only-payrolls

    See also:
    https://support.crunch.co.uk/entries...sion-enrolment

    So it *could* affect some people in this scenario but for the typical contractor/spouse co.sec probably not.
    Last edited by TheCyclingProgrammer; 8th December 2014 at 17:16.

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