Automatic Pension Enrollment

[Platypus]

I've taken no notice of the new pensions regs up to now, but I received a letter saying that MyCo's staging date is June 2015, so now I have to do something.

What are others doing? Any pro's and con's to using NEST?



Thanks!

EDIT: MyCo has only one qualifying employee, and that's me.

[Jessica@WhiteFieldTax]

Is it just you on payroll? In which case, why worry about Nest - opt out from AE and make your own Pension/pension provisions as and when. You can opt out of the whole thing by email to TPR.

If there are external staff on payroll, then NEST ought to be a safe option in so far as its government approved, but you may want to shop around for a better product, depending on your malevolence to your staff and tolerance of time and admin.

[Jessica@WhiteFieldTax]

Useful summary: Automatic enrolment for micro entities | AccountingWEB

[Platypus]

Thanks Jessica.

It's not just me on the payroll, there are 3 others, but they all earn less than £10k so don't need to be automatically enrolled. One will have left by the staging date. The other two will not request to join to the scheme, although I understand that they must be offered the choice. Which leaves just me who meets the criteria for auto-enrolment.

So I figure I can choose NEST or set up another scheme. I'll need financial advice on that I suppose.

I think I have to do this not "as and when" but before the staging date of 1/6/15.

Comments?

[Jessica@WhiteFieldTax]

In most cases if they are earning below £10k, they have a right to join a scheme, but don't have to be AE'd.

As they have a right to join a scheme you need to (a) set a scheme up (b) notify details (c) register with TPR and complete declaration.

I would agree, Nest is easiest and simplest, and I cannot see a need for either further financial advice or risk to you on comeback.

[Platypus]

Thanks again :-)

[Forbes Young]

I've taken no notice of the new pensions regs up to now, but I received a letter saying that MyCo's staging date is June 2015, so now I have to do something.

What are others doing? Any pro's and con's to using NEST?



Thanks!

EDIT: MyCo has only one qualifying employee, and that's me.

My understanding is that 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:

These contractors will still be sent letters, so my advice is for contractors to 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. It is also beneficial to add in the email that if they do employ someone on a contract of employment in the future they will let them (Pensions Regulator) know. Failure to email will result in chase-up letters/threatening letters being sent out to contractors by the Pensions Regulator and contractors may be fined for failing to respond to these letters.

In any case the staging dates for our type of clients are at the end of 2016, and into 2017.

The legislation is confusing and comprises over 270 pages of A4.

Graeme Bennett ACMA MBA

[Jessica@WhiteFieldTax]

My understanding is that 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:

These contractors will still be sent letters, so my advice is for contractors to 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. It is also beneficial to add in the email that if they do employ someone on a contract of employment in the future they will let them (Pensions Regulator) know. Failure to email will result in chase-up letters/threatening letters being sent out to contractors by the Pensions Regulator and contractors may be fined for failing to respond to these letters.

In any case the staging dates for our type of clients are at the end of 2016, and into 2017.

The legislation is confusing and comprises over 270 pages of A4.

Graeme Bennett ACMA MBA

Tend to agree Graeme, save that we are getting conflicting advice from TPR (left and right hand not talking) about whether companies with two officers otherwise exempt from AE can opt out by email.

In one conversation they've said if there is Dir + Co Sec, both salaried, then although they are exempt from AE they have to register, nominate contact, nominate scheme (presumably NEST) and can then rely on exemption. Another news release from them, the full text of the one I linked above, via CIPP website, suggests the two officer companies can opt out by email, but still have to do a declaration.

We've gone back to them again to try and get definitive guidance. As usual I suspect its cock up rather than conspiracy, and they haven't got consistent guidance on the the myriad of micro entities with staging dates + 12 months off.

[Archangel]

I've taken no notice of the new pensions regs up to now, but I received a letter saying that MyCo's staging date is June 2015, so now I have to do something.

What are others doing? Any pro's and con's to using NEST?



Thanks!

EDIT: MyCo has only one qualifying employee, and that's me.

I wonder why your date is June 2015? I have 3 employees and mine is 2016.

[cojak]

My accountant has me a letter saying that I could face a fine if I don't organise something (there's only me in the company).

It sounds as if this is a mass-mailing rather than a specific letter for my type of business.