Format of letter for Pension Advisory Service

[SueEllen]

not an officer no

Shame as it would have made life really easy for you as then you would have no employees who you required a scheme for.

linky

Remember no need to be a shareholder or actually do more than what she is already doing.

[CoolCat]

Tell me more about officer in this context

[northernladuk]

Can't your accountant handle it?

[mudskipper]

In order for your employee to opt out, you need to have a pension scheme for them to opt out of.

Look at NEST - AIUI it costs nothing to set up a scheme for them to opt out of.

https://www.nestpensions.org.uk/schemeweb/nest.html

[SueEllen]

Tell me more about officer in this context

The pension link gives a basic description of the different types of a director a company can have.

You need to remember directors have legal duties regardless, but also don't have to be:
1. A shareholder of the company
2. An employee of the company
3. A worker of the company
4. Be the signatory for the company bank account(s)
5. Get any payment at all from the company

Most people have who have non-working spouse make them a director and pay them a small salary due to the help and advice they provide. They also make them a shareholder - though as I pointed out above you don't have to. The pension issue for such non-fee earning directors is complex, there are threads on that topic, but as you are exempt from auto-enrolment it is left to you to sort out.

If you are paying your wife anyway to do some work then it makes sense to make her a director. Talk to your accountant about this but it is really easy to add another director. (If they aren't a shareholder it is easy to remove them as well though if you are married there is no reason to.)

[washed up contractor]

I beg to differ it is nonsense precisely for the reason I stated, that my pension is setup perfectly to look after her without her needing to have a separate pension.

Yea I can google stuff too, was just looking for a pre drafted letter...

But hey ho

[SueEllen]

In order for your employee to opt out, you need to have a pension scheme for them to opt out of.

Look at NEST - AIUI it costs nothing to set up a scheme for them to opt out of.

https://www.nestpensions.org.uk/schemeweb/nest.html

But you presume the employee wants to opt out.

The whole point of this is that they won't be bothered especially when they realise it is effectively a pay rise.