Director-only companies and Auto Enrolment

My brother and I run our own limited company. We’re both directors and we put a notional salary through the payroll for ourselves; but there are no other staff. We’ve received a letter from the Pensions Regulator with our Staging Date for Auto Enrolment. We’ve both got private personal pension schemes, so we don’t want to have one for the company as well. Is there any way we can get around this? 

1st June 2015

If you don’t have any staff other than directors, you may not have any automatic enrolment duties. You won’t have any duties if the only people working for you are:

  • you as the sole director, or
  • a number of directors, none of whom has an employment contract, or
  • a number of directors, only one of whom has an employment contract

Automatic enrolment will apply if more than one director has a contract of employment.

Therefore as you are both directors and assuming neither of you have contracts of employment in place, then you will not have any Auto Enrolment duties. If you have determined that you do not have any Auto Enrolment duties then you must tell The Pensions Regulator before your staging date. To do this, you may either:

  • complete an online form
  • email [email protected] and complete the details in the pre-populated message that opens when you select our email address. You’ll need your letter code, PAYE reference and Companies House number to hand.
  • download and follow the instructions in the Pension Regulator’s no employer duties email template

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.

Call us today to make an appointment at your local office

0800 0523 555

Or submit an enquiry