Auto Enrolment - What if I don't have any staff?

With smaller businesses now approaching their staging dates and receiving letters from the pension regulator we are getting many queries about how ‘director only’ companies need to deal with Auto-enrolment. The position is as follows:

If you don’t have any staff other than directors, you should not have any automatic enrolment duties as long as one of the below applies

  • you are the sole director, or
  • there are a number of directors, but none have an employment contract, or
  • there are a number of directors, but only one of them has an employment contract

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

You can find further information about employment contracts on the employment status section of the GOV.UK website.

You should note carefully that if you employ a family member who is not a director then, even if the salary paid is beneath the Auto Enrolment threshold – you do not meet the above criteria – in that case please contact us for further guidance and help.

What do you need to do?

You will (if you have a PAYE scheme set up) still receive a letter from the Pension Regulator which will include your staging date.

If you conclude that automatic enrolment duties don’t apply to you, you should follow the link below

http://www.thepensionsregulator.gov.uk/employers/What-if-I-dont-have-any-staff.aspx and then follow the instructions to fill out the pre-populated email to The Pension Regulator. You will need

  • Your letter code ( which is on the letter from the Regulator)
  • Your PAYE ref
  • Your company number (if you operate a limited company)

Don’t forget that if circumstances change ( for example – you take on staff)  so that automatic enrolment duties apply to you, you’ll need to contact us for further guidance as soon as possible.