Contractor Blog Zone
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Hello! My name's Jo Johnston, I'm the CEJ Client Manager and newest member of the team. My main role is to answer your queries, so each week I'll choose a topic that you've been emailing me about and post a short blog covering the main points that have been raised.
This week, many of you have received a letter from The Pensions Regulator asking you to nominate a contact for automatic enrolment. Although there’s been a lot of media coverage claiming it'll be compulsory for all employers to set up a workplace pension, this isn't actually the case. There are a number of instances in which automatic enrolment duties will not apply, and many of these apply to you as contractors.
Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:
If any of the above apply to you (and as a CEJ contractor this is highly likely), you can stop the chain of letters from HMRC now. Simply click on the following link and let HMRC know that you’re not an employer.
To complete the form you’ll need the letter code, and your PAYE reference, which are both included at the top of your letter.
(If your situation changes so that none of the above criteria apply, you must immediately notify The Pensions Regulator).
However ... whilst this releases you from automatic enrolment responsibilities, it doesn't mean you shouldn't consider setting up a pension for yourself. There are many benefits to having a pension and in the right circumstances pensions are the perfect use of retained profits. If you're a CEJ client and would like to discuss this further, please get in touch and we'll be happy to discuss your options.