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Opting Out for Director

  • Member PM.Dip
  • Practice Licence
  • 26 posts
  • # 117536

My client is a Director and also pays himself a Salary.

Do normal opting in and out rules apply?  Ie 3% and 2% with option of opting out?


Thanks

Debs

  • Payroll Agent
  • Practice Licence
  • 9 posts
  • # 117537

Hi Debs,

If the director does not have a contract of employment or is the sole director and only person in the company, they are exempt from automatic enrolment as they are not a "worker"

If they have a contract of employment as well as another person within then company, then the usual rules for automatic enrolment would apply including the minimum contributions and opt out rights. 

Kevin

  • Member PM.Dip
  • Practice Licence
  • 29 posts
  • # 117538

Hi Debs,

Auto enrolment does not apply to Sole Directors or Directors under some circumstances, copy of applicable exclusions from the TPR website below:

  • they are the sole director
  • the only people working for them are a number of directors, none of whom have an employment contract
  • the only people working for them are a number of directors, only one of whom has an employment contract

You will just need to complete the declaration to tell them that it is a single director company, if applicable. Otherwise, if their are other employees, or more than one director with a contract, the normal opt out rules apply.

Hope this helps Smile

Jaye

  • Member PM.Dip
  • Practice Licence
  • 26 posts
  • # 117541

kjmayes said:

Hi Debs,

If the director does not have a contract of employment or is the sole director and only person in the company, they are exempt from automatic enrolment as they are not a "worker"

If they have a contract of employment as well as another person within then company, then the usual rules for automatic enrolment would apply including the minimum contributions and opt out rights. 

Kevin


 Thanks so much for your reply Kevin,

  • Member PM.Dip
  • Practice Licence
  • 26 posts
  • # 117542

Jaye said:

Hi Debs,

Auto enrolment does not apply to Sole Directors or Directors under some circumstances, copy of applicable exclusions from the TPR website below:

  • they are the sole director
  • the only people working for them are a number of directors, none of whom have an employment contract
  • the only people working for them are a number of directors, only one of whom has an employment contract

You will just need to complete the declaration to tell them that it is a single director company, if applicable. Otherwise, if their are other employees, or more than one director with a contract, the normal opt out rules apply.

Hope this helps Smile

Jaye


 That's great Jaye, thanks for your help

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