02 February 2016
The Pensions Regulator Sole Director company
This email is intended to provide helpful guidance to Taxsense Accountants Limited clients in relation to the new pension regulations and how to apply them if you are an employer. This guidance note is provides helpful guidance if you are a sole director of a Limited Company.
If you need helpful guidance in regards to your responsibilities as an employer in relation to the new pension regulations please email mark@helpboxuk.com or telephone Rachel Labercombe on 02392388003.
We are here to help.
According to the Pension Regulators website http://www.thepensionsregulator.gov.uk/en/employers, sole director companies might not need to register a company pension scheme.
Here’s what the Pension regulator says:
What if I don’t have any staff?
Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:
·     you’re a sole director company, with no other staff
·     your company has a number of directors, none of whom has an employment contract
·     your company has a number of directors, only one of whom has an employment contract
·     your company has ceased trading
·     your company has gone into liquidation
·     your company has been dissolved
·     you no longer employ people in your home (cleaners, nannies, personal care assistants, etc.)
Automatic enrolment duties will apply if more than one director has a contract of employment.
Helpbox Tip:
Further to our recent communications with regards to pension auto enrolment. Based upon our records including any payroll records which we hold, then it appears to us, that provided you do not have a written contract of employment with the company, then you do meet the above criteria. In which case it is very likely that you will not be required to register a pension scheme with The Pension Regulator.
Please Note: However, you will still need to tell the regulator that you  believe you are exempt from the Pension Act 2008.
Do these apply?
1.       I am a company director and have a contract of employment with that company.
2.       I have a co-company director.
3.       The company employs others.
4.       The company pays sub-contract labour invoices.
5.       The company pays agency labour.
If any of the above apply, then you must carry out a full assessment of the company’s status in relation to the Pensions Act 2008. We can help you make that assessment. If you want us to assist you further, then please ask us by emailing Rachel@helpboxuk.com.
If you are satisfied that you don’t need to Register a pension scheme then the following will be helpful.
Your pension staging date is: [       ] Contact mark@helpboxuk.com for assistance in obtaining this.
Your Payroll Ref: [       ] Contact mark@helpboxuk.com for assistance in obtaining this.
You will need to quote the above payroll reference in communications with The Pension Regulator.
We have set out below some useful suggestions:
1.       A suggested email/letter which you might want to use and send to the Pension Regulator.
2.       The Pension Regulators website details: http://www.thepensionsregulator.gov.uk/en/employers
3.       Additional contact details where you can talk to The Pension Regulator.
4.       If you are content that you are a non-qualifying employer, then in such a case you should inform The Pension Regulator within 5 months of your staging date (see above for staging date).
5.       NON QUALIFYING EMPLOYER: We recommend that if you are a non-qualifying business you inform the Pension regulator within 4 weeks.
6.       You are responsible for any declaration made to The Pension regulator. Therefore, if you think your position isn’t as we have described in this letter. Then you should:
a.       Seek advice from The Pension Regulator.
b.       Register a scheme with the Pension regulator within 6 weeks of your staging date or as soon as you qualify.
c.       Contact Rachel@HelpboxUK.com to discuss this matter further and we will attempt to assist you.
Review regularly and when anything changes such as pay rises new employees
Whilst you might currently be a non-qualifying employer, it is important to note that The Pension Regulator will likely check your HMRC payroll records each year to identify any employees that are being paid above the qualifying level currently £10,000 p.a. (Gross) before tax.
The Pension Regulator has powers to fine employers who make late and inaccurate declarations. Therefore, if you suspect that you might be a qualifying employer, then it seems prudent to register a pension scheme. We can help you to do so.  For example:  You should register immediately if you become a pension qualifying business. For example, if your business does start to pay anyone £10,000 p.a. or more. When making this assessment, it is important to recognise that your business payroll includes, sub-contractors and agency workers. So if you pay agency staff or sub-contractors more than £10,000 p.a. then you have a duty to inform the Regulator by registering a pension scheme.
There is a lot more to the Pension Act 2008 and this letter only deals with what you have told us about your circumstances and our interpretation of those regulations. We therefore recommend that you carry out your own research and satisfy yourself that this information is up to date and relevant to your current circumstances.
We want to help you with understanding the new regulations. If you require any other assistance, please don’t hesitate in contacting in the first instance Rachel@helpboxuk.com.
We can help with the Pension Regulations:
1. Before your staging date.
2. At your staging date.
3. After your staging date.
Yours sincerely
Taxsense Accountants Limited
Tips on drafting letters to Pension Regulator:
Enclosed:
1.       Letter which you might want to send.
2.       Pension Regulator contact details.
3.       Identifying your duties help note.
4.       Your duties help note.
Letter which you might want to send
[Your business name as registered with HMRC]
Ref: [PAYE ref number]
[Date]
Dear sir
Re: Sole Director Company Exemption: [Name of your company]
I am the sole director of the above and have carried out a review of the employment records and have reviewed those records against the information provided on The Pension regulators website. II believe the section regarding Sole company directors applies. That is:
What if I don’t have any staff?
Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:
·     you’re a sole director company, with no other staff
·     your company has a number of directors, none of whom has an employment contract
·     your company has a number of directors, only one of whom has an employment contract
·     your company has ceased trading
·     your company has gone into liquidation
·     your company has been dissolved
·     you no longer employ people in your home (cleaners, nannies, personal care assistants, etc)
Automatic enrolment duties will apply if more than one director has a contract of employment.
As I am the sole Director without a contract of employment I request that you accept that the scheme rules don’t apply to the above company.
Therefore, we ask that you note in your files the above and that we are, in the context of the Pensions Act 2008, a non-qualifying employer.
Yours sincerely
[signature]
[name]


 Email the above letter to the details below:
Contact details for the Pension Regulator
Inform the pension regulator online here:
Email
Send them an email with your scheme return or Exchange query to:
Phone
0345 600 5666 (Option 2)
Lines are open 9am to 5.30pm Monday to Friday, except national holidays.
The Pensions Regulator
Napier House
Trafalgar Place
Brighton
BN1 4DW

http://www.thepensionsregulator.gov.uk/

Identifying your duties
You’ll need to know which staff you’ll have to automatically enrol and which staff have a right to opt in or join your pension scheme. You must make this assessment on either:
  • your staging date, or
  • the last day of the postponement period.
Your duties
At staging or when postponement ends, your key duties are to:
  • automatically enrol all staff who are eligible and make them active members of your pension scheme
  • write to each member of staff to tell them how automatic enrolment affects them
  • submit a declaration online to us to tell us how you’ve complied with your duties.
You’ll need to tell your pension scheme about the staff you’re enrolling. To find out what you need to arrange with your pension scheme contact Rachel@Helpboxuk.com.
For information about how to make someone a member of your pension scheme go to contact Rachel@Helpboxuk.com.

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