AUTO ENROLMENT FOR THE SMALLER BUSINESS
Recently the TPR’s office made an announcement that a business is exempt from AE where it has no “workers” or “employees” in the normal sense of the word.
Representative bodies have been pressing TPR for clarification regarding the position of a business which has a PAYE scheme, and hence will have been given a “staging date” for the purposes of AE, but whose only participants in the payroll are the business owners themselves.
They have payroll entries to ensure they can draw funds from the business on a regular basis and protect their state retirement pension position but have no other relationship with the business except as owners and probably directors.
TPR confirmed that as long as the business has no one on its payroll except for its owners it has no obligations under AE. Since none of the members are “staff” the AE process does not have to apply to them.
It will be up to the owners to determine if they wish to enrol themselves in an eligible pension scheme and it is for this reason the process which has been decided is a little less than satisfactory.
TPR writes to each and every business about 12 months prior to the staging date providing key information and guidance about the need to prepare for the enrolment of its staff. It is unlikely that close companies will receive anything different to other businesses.
Here at Magenta we have a note of all our clients’ staging dates and a calendar note to contact them 12 months before that date to discuss whether auto enrolment is applicable. We are also fully conversant with the process and can assist through the whole procedure.
Magenta Accounts
Unit 2A Poles Copse
Poles Lane
Otterbourne
Winchester
SO21 2DZ
Tel: 01962 717498
Mob: 07795 974685
email: info@magenta-accounts.co.uk
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Faye Chandler, Oliver Chandler Limited
I would gladly recommend Keeley to anybody who is looking for a conscientious, detailed and hard working accounting professional. Both individually, during her career before Magenta, and now as part of the wider Magenta Accounts team Keeley has looked after my financial well-being over the last fifteen years, and has done it exquisitely well. In fact, so happy am I to recommend Keeley, that four of my closest friends now have their company finances managed by Keeley's safe hands at Magenta.
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Linda Green
Just a note to say how impressed I have been with Magenta Accounts and the service that you have provided me within my first 6 months of setting up my business. With being a new business, making sure I generate income immediately is vital, so by knowing that you are taking away of all my financial duties from me such as making small payments to providing monthly management accounts allows me to focus more of my time on other aspects such as growing the business and generating revenue. Each member of staff provides a personal and prompt service and it is comforting to know that whoever I speak to at Magenta Accounts, each member of staff is fully aware of my accounts and the current situation. I would fully recommend your company to any business who is looking for a service that not only helps take away the stress of looking after money, but also helps you grow as a business.
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