Automatic Enrolment Exemptions
From 1 April 2016 it will no longer be an employer’s mandatory duty to auto-enrol a company director.
Prior to 1 April 2016 if a company had only directors and no other employees and the directors had contracts of employment then those individuals would be subject to the normal workplace pension rules.
However if no contract existed then the company could inform the Pensions Regulator that it had no employees and the company would be exempted from the pension requirements.
There are three other exemptions which have existed from 1 April 2015;
1. Employees who have fully funded their pension schemes (£1m 2016/17) and claimed tax protected status;
2. Employees who have been given a termination of employment notice;
3. If an employee opts out of an existing qualifying pension scheme in the 12 months prior to the company’s staging date for auto-enrolment, then the employer does not have to auto-enrol that person until after a further 12 months. When that 12 months has passed then normal auto-enrolment rules apply.
For more information please contact our Payroll Partner, Graeme Sheridan, on the details below:
direct dial: 01942 292506