We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Very Small Business and AE

2»

Comments

  • AbbieCadabra
    AbbieCadabra Posts: 1,714 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    i needed to alter our shares allocation recently & our accountant was very helpful, worth asking yours for advice on this?
  • Froggitt wrote: »
    I find all the official websites on AE useless to put it mildly. Can anyone suggest whether they think my company is caught by AE?


    Neither me nor my wife have contracts. Each of us work when there is work to do. I take £12k pa (£1k pm), she has £4k pa (£333 pm). I am a director, she does the admin and is not. Both of us are shareholders.

    You don't have to have contracts. You have to be qualifying workers (if not qualifying employees) you will be auto enrolled she has the option to be.

    Paid off all Catalogues 10.10.2014
  • As an electrician I am a sole director of a ltd company.


    yes you have to get caught up in auto enrolment etc or AE as you like to abbreviate it.


    To much nonsense for me so I am reverting to sole trader to avoid it in 2017.


    goodbye PAYE , RTI and AE.
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    As an electrician I am a sole director of a ltd company.


    yes you have to get caught up in auto enrolment etc or AE as you like to abbreviate it.


    To much nonsense for me so I am reverting to sole trader to avoid it in 2017.


    goodbye PAYE , RTI and AE.

    The only requirements for Auto Enrolment are that you employ someone in the UK.

    Making yourself sole trader from LTD won't change anything, and you'll probably end up paying more tax (because that's why you became LTD in the first place, right?)
  • AbbieCadabra
    AbbieCadabra Posts: 1,714 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    mania112 wrote: »
    The only requirements for Auto Enrolment are that you employ someone in the UK.

    Making yourself sole trader from LTD won't change anything, and you'll probably end up paying more tax (because that's why you became LTD in the first place, right?)

    nothing to do with AE, but depending on your yearly profit, those LTD tax benefits have now been greatly reduced so perhaps worth reviewing whether it's still worth it being Ltd against sole trader.

    still got to comply with AE though!
  • greenglide
    greenglide Posts: 3,301 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    But a limited company can make employer contributions which count as a business expense offsetting any corporation tax liability and there is no income tax nor NI involvement.

    I assume that a self employed sole trader cannot do that and pension contributions are taken from income after NI (class 4?) has been calculated?
  • Froggitt
    Froggitt Posts: 5,904 Forumite
    And employer NI paid by Govt upto £3,000 for small companies.
    illegitimi non carborundum
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    edited 12 April 2016 at 12:09PM
    Froggitt wrote: »
    I find all the official websites on AE useless to put it mildly. Can anyone suggest whether they think my company is caught by AE?


    Neither me nor my wife have contracts. Each of us work when there is work to do. I take £12k pa (£1k pm), she has £4k pa (£333 pm). I am a director, she does the admin and is not. Both of us are shareholders.


    This is one of the reasons my wife and I have closed our Ltd Co, and now are to become a partnership with no employees.


    Cameron promised a bonfire of regulation, one in one out, lol. Being LTD = HASSLE
  • I can confirm that 1 director on nominal salary and 1 employee on £4k would be caught for AE but neither of you would be automatically enrolled so you would not need a pension scheme
    I have a few clients where none of the employees are eligible so there was one letter to state that at the beginning and nothing else to do unless they ask to opt in or their income changes
  • Froggitt
    Froggitt Posts: 5,904 Forumite
    So what do I need to do? I got another leaflet this week, its as vague as the previous one.
    illegitimi non carborundum
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247K Work, Benefits & Business
  • 603.7K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.