Automatic enrolment (auto-enrolment) is new pensions legislation which requires employers to provide and contribute to a pension scheme for their staff.
Only 'Eligible workers' need to be enrolled automatically. Generally-speaking, these are workers aged over 22 and earning over £9,440 per annum.
In order for you not to be deemed as a eligible worker, you must be the only director of the company and the company must have no other employees.
But there are perks of having a pension scheme. Not only are you saving for your future, but the pension contributions made by the company on your behalf are likely to be a tax deductible expense for the company and should not trigger a tax charge on you either.
At TaxAssist Accountants we are working together with Scottish Widows, one of the UK’s leading pension providers, to create The TaxAssist Accountants Client Pension Scheme. The scheme offers a host of features and benefits for small businesses that are normally only available for larger organisations and is compliant with the auto-enrolment guidelines.
If you would like to discuss your remuneration package in more detail, please do not hesitate to contact us and we’ll put you in touch with your local TaxAssist Accountant.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.