Every employer in the UK with a PAYE scheme should have been issued with a letter from the Pensions Regulator similar to the following one notifying them of the need to provide an auto enrolment pension for their employees. There are a small number of exceptions to this rule
Letter from the pensions regulator
If you do not have any staff other than directors, you may be able to opt out of these duties, but only if:
- you are the sole director, or
- there are a number of directors, none of whom has an employment contract, or
- there are a number of directors, only one of whom has an employment contract
You may not be an employer if you do not, or no longer have, any staff because any of the following statements apply to you (in which case your PAYE scheme is likely to be closed anyway):
- the company has ceased trading
- the company is terminally insolvent eg has gone into liquidation
- the company has been dissolved
What do you need to do?
If you receive a letter like the above and one of the reasons above applies to you, please select the Pension Regulator Exempt Employer link and complete the details in the form on screen. Most of the information is on the letter:
- Letter code as shown on the letter – if you cannot find this it can be obtained from the Pension Regulator – Find your code
- PAYE reference also on the letter
- Companies House number (if your company is registered at Companies House)
- Your name, email address, postal address and phone number
- Finally you will need tick to confirm that the details are correct and you will inform the Pension Regulator as soon as possible if your circumstances change (for example taking on employees).
Even if the company is exempt, it is recommended that the directors should take advice and plan for their retirement, which is the whole reason for the new law.
This is a summary of the steps to be taken by directors based on our current understanding of the auto enrolment rules but there may be changes so you should seek professional advice before taking any steps based on the contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend, Kent – Accountants who “speak your language”