Don’t listen to The Pensions Regulator

Alexander Accountancy auto-enrolment workplace pensions specialist Burton on Trent

We have just experienced The Pensions Regulator issuing contradictory answers to the same question. One of our clients is a limited company with two Directors. Neither of the Directors has a written contract of employment, but both of them fulfil roles that contribute to the trade of the business.

The Pensions Regulator telephone helpline service has advised the employer they do not need to set up an auto enrolment scheme on the grounds that they are both Directors, neither of them has a contract of employment and can therefore be classed as Office Holders. PLEASE NOTE – THIS ADVICE IS WRONG.

To verify this we emailed The Pensions Regulator for confirmation. The advice we received in writing was exactly the same as we had given ourselves. Contracts of Employment can be written, verbal or implied; and if a director contributes towards the trading operations of the business they are employees of the business as well as Directors, the roles are not mutually exclusive.

There are also reasons why they are most definitely NOT OFFICE HOLDERS.

Employment status and auto enrolment legislation is a very wide ranging subject that covers multiple areas of expertise. With the best will in the world the helpline staff working for The Pensions Regulator are not qualified Accountants, Financial Advisers, HR Professionals, Payroll Experts or Employment Solicitors.

This is an area of legislation where interpretation of the fine print is still developing and being debated by the experts. If you want to get advice that you intend to rely on in making a decision, then please do what we did, and get it in writing.

Auto enrolment is not popular with a lot of small businesses, with a lot of owners not liking the sound of the best advice and searching for what they want to hear. Even when it is wrong, given as opinion not advice, not covered by indemnity insurance and can end up costing the penalties.

If you like to be told what you need to hear, even if it’s not what you want to hear, and think Alexander Accountancy could be your type of firm, please email us for a meeting on;

in**@al*******************.uk or telephone us on Burton on Trent 01283 743851.

Or come and meet us, some of our clients and some of our other contacts, by booking on to our next Planning for Growth Workshop being held on Wednesday 20th April 2016. At Branston Golf and Country Club (rescheduled from March 17th).