Minimal responsibilities for Director only companies

Automatic Enrolment may be a daunting phrase for businesses and a topic pushed to the bottom of a never ending “to do” list. The good news is that Automatic Enrolment responsibilities are minimal for director only companies.

If you meet The Pensions Regulator’s criteria for not being an employer, Automatic Enrolment duties will not apply to your business. To not be considered as an employer, your business must meet one of the following criteria:

• You are a sole director company, with no staff;
• Your company has a number of directors, none of whom have an employment contract;
• Your company has a number of directors, only one of whom has an employment contract;
• Your company has ceased trading;
• Your company has gone into liquidation;
• Your company has been dissolved;
• You no longer employ people in your home (cleaners, nannies, etc).

If you consider any of the above to apply to you then you will need to inform The Pensions Regulator. This can be done by completing their online form where you will need to enter your PAYE reference and Letter Code. Alternatively, you can contact your local MFW office who will complete the form on your behalf.

If your business circumstances change then you will need to inform The Pensions Regulator as soon as possible, as this may impact on your Automatic Enrolment duties.

For more information on Automatic Enrolment businesses and to complete the online form, please click here

Alternatively, call your local MFW office for more advice.

We have offices conveniently located across Kent in Ashford, Cranbrook, Dover, Herne Bay, Maidstone and Sittingbourne.