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Opting Out for Director

  • Member PM.Dip
  • Practice Licence
  • 29 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

  • 20 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

  • 37 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
  • 29 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
  • 29 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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