Sole Director Limited company - pension contributions.

retailtherapist

Hi, I am a sole director of a limited company and looking to make a small lump sum pension contribution. The company is almost 10 years old and I haven’t been making contributions annually. I’ve just now come across the Pensions Regulator requirement to auto-enrol or inform them of exemption. Is this something I should have done upon setting up the company? I don’t think I have done anything previously. I pay a small salary run through PAYE so would I be technically an employee? Is there any way of checking and do I face any liabilities? My accountant is not much help with giving advice.

Tucosalamanca

Odd that you didn't receive any correspondence from The Pension Regulator prior to auto-enrolment.
Warning you in advance, duties start date, sending reminders, checking compliance, re-enrolment and re-declaration after three years... I've had dozens of letters over the years. Are all of you details up-to-date with HMRC and so on?
What about your accounting/payroll software, I use Sage and you really couldn't avoid seeing the sections relating to pensions.
As a company director you have lots of responsibilities and should be on top of this kind of thing, or paying someone else to advise you.
If your accountant isn't much help, I'd suggest finding a new one....

retailtherapist

Thinking about it I think I may have received something from the Pensions Regulator - quite a while back but I’m not sure. Is there a way to find out without contacting them (in case I haven’t)? I tried to reset login account with my email but I haven’t received a reset password email from them. I don’t use accounting / payroll software. Everythng at HMRC is up to date. It’s only because I want to make a pension contribution from my Ltd company that I came across this requirement.

Marcon

retailtherapist said:

Hi, I am a sole director of a limited company and looking to make a small lump sum pension contribution. The company is almost 10 years old and I haven’t been making contributions annually. I’ve just now come across the Pensions Regulator requirement to auto-enrol or inform them of exemption. Is this something I should have done upon setting up the company? I don’t think I have done anything previously. I pay a small salary run through PAYE so would I be technically an employee? Is there any way of checking and do I face any liabilities? My accountant is not much help with giving advice.

If you don't have any (other) employees, then you are covered by an exemption:

https://www.thepensionsregulator.gov.uk/en/business-advisers/automatic-enrolment-guide-for-business-advisers/director-exemptions-from-automatic-enrolment

You can still go ahead and have employer contributions made to your own pension scheme (any scheme of your choosing) by your limited company.

In short, nothing to worry about!

fizio

Yup. -Directors are exempt as I am doing that very thing and cleared it with my accountant 

Grumpy_chap

retailtherapist said:

Hi, I am a sole director of a limited company and looking to make a small lump sum pension contribution. The company is almost 10 years old and I haven’t been making contributions annually. I’ve just now come across the Pensions Regulator requirement to auto-enrol or inform them of exemption. Is this something I should have done upon setting up the company? I don’t think I have done anything previously. I pay a small salary run through PAYE so would I be technically an employee? Is there any way of checking and do I face any liabilities? My accountant is not much help with giving advice.

If it is just you as sole owner and Director and no other employees then you can ignore auto-enrolment.
If your Accountant could not confirm that, then it may be time to find another Accountant.

Regardless, you can make employer contributions to a pension scheme and it will be very tax efficient and the future you will be very grateful.  Employer contributions are not constrained by earnings but are constrained by Annual Allowance (plus any available carry forward).