Author Topic: Workplace Pension Regs (Read 3679 times)

Penninehillbilly · « **on:** October 04, 2016, 06:02:01 pm »

Hi All
this new pension regulator thing, businesses have to have all their employees on it by a staging date.
OH is a one man band and I am employed (between smallholding duties :-).) to do the bookwork.
We are rapidly coming up to our staging date, and I still don't understand what I am supposed to do, I am delegated contact so I'm supposed to deal with it, but website doesn't seem that clear to me?
probably because I'm panicking because I don't understand, which makes it a vicious circle,
Do I have to set up a pension scheme or do I just click on the government one and it does it all for me?
Can anyone advise?

Black Sheep · « **Reply #1 on:** October 04, 2016, 09:11:12 pm »

Could you opt out, which would simplify things?

https://www.gov.uk/workplace-pensions/if-you-want-to-leave-your-workplace-pension-scheme

Or alternatively would it be possible for you to become a director of the company as well and then be paid by dividend / director's fees and thus not be an employee?

Penninehillbilly · « **Reply #2 on:** October 04, 2016, 11:28:06 pm »

Thanks, couldn't think of the 'workplace' title earlier, shows how its getting to me, been going in circles most of afternoon, but didn't see the links following your link Black Sheep. I'll have a look in the morning, might make more sense :-)

DavidandCollette · « **Reply #3 on:** October 05, 2016, 10:02:10 am »

My understanding is that the e.ployer has to register with one of the pension providers irrespective of how much you earn. You can then opt out of paying any pension at all, so that means that the employer doesnt have to pay anything. You muzt register by the staging date or be subject to a fine. It may be tbat you you are under the threshold for paying into a pension, but the employer tilll has to register. It might be worth getting some advice from one of the pension advisors for peace of mind

Caroline1 · « **Reply #4 on:** October 05, 2016, 02:38:54 pm »

I was involved in setting up the pension scheme for auto-enrollment for work.

Basically you will need a pension scheme to automatically be put into for you then to be able to opt out of it if you wish. There is also every 3 years when you are put back in and you will need to opt out. This could be a "company one" or could be the government one, I believe there are even some private pension schemes that you can use as your auto-enrollment scheme.

You may also find that you don't earn enough to be eligible for auto-enrollment as there are criteria's such as income and age to comply with.

The easiest way is to have a chat to a pension advisor or reading of some of the links people have already put.

Good luck!

Womble · « **Reply #5 on:** October 05, 2016, 02:55:47 pm »

There are three things at play here:

1) What does the company need to do, or provide for its employees?
2) What does OH (as a director, who may or may not also be an employee) need to do in response to that?
3) What do you (as an employee) need to do in response to that?

I think the biggest confusion is caused by lumping all of these questions together. If you separate them again, and answer them one at a time, I think things will become clearer. Maybe. However, the answers also depend as much on what you want to achieve, as what the legislation requires (i.e. do you actually WANT a workplace pension, or do you want to opt out?).

P.S. Once you figure out the answer, could you please come back and tell us? I haven't even looked up our staging date yet - I just know it's next year sometime!!

Penninehillbilly · « **Reply #6 on:** October 05, 2016, 03:08:34 pm »

Quote from: Womble on October 05, 2016, 02:55:47 pm

There are three things at play here:

1) What does the company need to do, or provide for its employees?
2) What does OH (as a director, who may or may not also be an employee) need to do in response to that?
3) What do you (as an employee) need to do in response to that?

I think the biggest confusion is caused by lumping all of these questions together. If you separate them again, and answer them one at a time, I think things will become clearer. Maybe. However, the answers also depend as much on what you want to achieve, as what the legislation requires (i.e. do you actually WANT a workplace pension, or do you want to opt out?).

P.S. Once you figure out the answer, could you please come back and tell us? I haven't even looked up our staging date yet - I just know it's next year sometime!!

Ours is Nov 1st.
OH doesn't want to know, hence I'm on my own with this, feeling a bit lost and confused.

Caroline, so the government 'NEST' is the actual scheme, i don't need to find anything else where the money goes?

Womble · « **Reply #7 on:** October 05, 2016, 03:33:45 pm »

OK, if OH is a director WITHOUT a contract of employment, they're exempt from the requirements.

One quick thought PHB - you aren't the company secretary are you? If you are, AND if you don't have a contract of employment, then you're classed as an office holder, and are also exempt from the requirements {see link}. You're also exempt if you earn less than £10,000 p.a.

If any of these things make both of you exempt, my understanding is that you can then register the company as as "not an employer" on the Pensions Regulator website, and that's then the end of it. I'm afraid I don't know what you need to do if you're not exempt, as I haven't got that far yet!

BTW, do you have an accountant? I'd expect them to either be dealing with this on your behalf, or at least be able to advise what you should do?

Penninehillbilly · « **Reply #8 on:** October 06, 2016, 10:30:56 am »

Thanks Womble, only OH, self employed, he goes out to mend heating, everything else is my job. So no director, no contracts. Under 10,000, but i understood the threshold to be just over £5k ?
Accountant only does the basic tax at the end of the year.
Other complication is OH passed retirement age, I'm only a few years off, not sure it's all worth it.
Just cross posting SD, I'll post then check your link

Womble · « **Reply #9 on:** October 06, 2016, 10:56:22 am »

Ah ok, I had wrongly assumed that you were running a ltd company rather than OH being truly self employed, with you as an employee.

It shouldn't be all that complicated though. If neither of you want to have anything to do with this, can't "the business" register for the government scheme, and then each of you opt out of making any payments to it?

There must be plumbers, joiners, plasterers etc up and down the country in the same situation though. Is there nothing on the relevant trades forums?

Penninehillbilly · « **Reply #10 on:** October 06, 2016, 11:15:57 am »

Thanks Womble, just asked him and he says he doesn't really read them

Caroline1 · « **Reply #11 on:** October 07, 2016, 04:18:32 pm »

Yes NEST is the government approved scheme that you can have as your pension scheme. The FAQ section is useful: http://help.thepensionsregulator.gov.uk/faq/general and I would recommend giving them a call. As you have said there will be a lot of people in your situation and they can give you direct advice of what you need to do.