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Director with one employee - do i need to AE ?

I've tried to find the answer to my query by searching through old posts, as I'm sure someone will have already asked, but I just can't quite find the answer.

I am the sole director of my Ltd company and pay myself £8040 per annum as a salary. I also take dividends from the business. I have one employee who earns circa £25k.

Do I need to AE myself (albeit if I do, I intend to opt out) or is it just my employee I need to AE

thanks

Comments

  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
    Name Dropper Photogenic First Post First Anniversary
    http://www.thepensionsregulator.gov.uk/automatic-enrolment-enquiries.aspx#s16874

    Indicates that yes, all (both) of you should be auto-enrolled (due to the presence of the employee) unless you specifically opt out.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • CherubP
    CherubP Posts: 12 Forumite
    First Anniversary
    Hi

    I am in a similar position to you. One Director, one employee although Director already has a pension which meets the new requirements. So just one employee to enrol.

    You need to set up a pension and auto enrol all employees who you don't currently provide a pension for whether they want to opt out or not. They then have a month from enrolment to opt out, they cannot opt out before enrolment. Nest cost nothing to set up and takes you through it step by step.

    Can't post links as I am a newbie but cut and paste these for more info (might need to add www to front of each:

    nestpensions.org.uk/schemeweb/NestWeb/public/home/contents/homepage.html

    nestpensions.org.uk/schemeweb/NestWeb/public/employers/contents/get-ready-for-auto-enrolment.html
  • dunstonh
    dunstonh Posts: 116,316 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Directors alone do not trigger the auto-enrolment requirement. However, if you have at least one person on a contract of employment, then not only does it need to be put in place for them, it also drags the directors into auto enrolment too.
    Do I need to AE myself (albeit if I do, I intend to opt out) or is it just my employee I need to AE

    Note, that if you opt out of the AE scheme, this may impact on your ability to pay into an individual scheme. Some providers will not transact with opt outs unless it is via an adviser with pension transfer permissions.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Motofe
    Motofe Posts: 1 Newbie
    Thanks, I've been getting mail from a company 'Smart Pension' claiming that there is a deadline to enrol into the scheme, after which fines will be imposed ranging from an initial penalty of £400.00 plus daily fines from £50.00 to £10,000.00
  • *~Zephyr~*
    *~Zephyr~* Posts: 612 Forumite
    First Anniversary First Post Combo Breaker
    Motofe wrote: »
    Thanks, I've been getting mail from a company 'Smart Pension' claiming that there is a deadline to enrol into the scheme, after which fines will be imposed ranging from an initial penalty of £400.00 plus daily fines from £50.00 to £10,000.00



    Yes, each company has 'staging dates' which is the date by which you need to have put a pension in place.

    Go here to check your staging date:
    http://www.thepensionsregulator.gov.uk/employers/staging-date.aspx
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