Partners and Sole Traders with no staff and no payroll – you shouldn’t need to do a thing. You’re exempt.
For the vast majority of other business types you’ll have to do auto enrolment.
Single Director Firms without staff may get letters from The Pensions Regulator even though you are exempt from auto enrolment. We can action the exemption for you if you get in touch. It’s a free service.
Two Person Director firms and those who employ direct staff will all need to look at auto enrolment and what is required. For the rare two director firm with no payroll, you too are exempt.
- have no employees or contractors
- if you are a collection of directors or partners, have no employment contracts or payroll. We’re not talking brown envelopes though, HMRC wouldn’t like that.
- if you just use contractors & no direct staff
- ensure contractors are business contractors e.g. ABC Ltd not John Smith
- use agency or umbrella company staff as the auto enrolment will fall to the agency and umbrella companies. Check this as it does depend based on who is paying the staff and who has the contract with them
- some personal contractors will be exempt too, we’d need more details on the circumstances to advise further.
- It was thought that LLP partners were exempt, this is now less clear cut and should be researched thoroughly.