X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Tax

    What constitutes a contract of employment?

    My wife and I are directors of a ltd company with no other employees.  The company provides a lettings management service for our own property property portfolio and occasionally we provide maintenance services to other landlords too.  We pay ourselves an equal amount, annually, every 31st March and pay tax and ni on this.

    I have just declared that we don't need to auto enrol for the workplace pension as "we are both directors and neither have a contract of employment".  I am 99% sure I am correct but it is niggling at me a bit that we may in some way have implied contracts of employment.  We can't be the only people in this situation.  Anyone else got a view?  Ultimately I don't want the faff of having some pension scheme when I already have some old frozen pensions and our property portfolio is our pension.

    0
    0

    You are correct that directors are not, as a result of their directorships, employees.

    There may be an implicit separate contract of  employment, though. This will depend on a variety of factors.

    What is the payment you give yourselves?  Is it a dividend (which comes from being a shareholder, not from being a director)? Or is it a "director's emolument"? Do you pay yourselves a salary at all?

    There is some useful guidance here: https://www.thepensionsregulator.gov.uk/d...lment.aspx

    0
    0

    Thanks for replying.  The "variety of factors" is why I am confused.  We each get paid an equal annual amount once a year.  I pay it through a payroll which calculates the tax and ni to withhold.  I decide the amount it will be towards the end of the company year ie 31 Mar.

    That guidance is what I read and left me a little unclear.

    0
    0

    Hi James

    I am the MD of a mid sized company. We have 15 full time staff, who are auto enrolled. We also have 700 part time workers (they are F/T employed elsewhere, and work for us for 3/6 or 9 days per year, during their holidays.

    My instructions were to assess them for enrolment on a date (say 30 April) if they qualify for enrolment, then set a staging date 3 Months later and re check them. Once they have failed to qualify you are ok for three years, then repeat again.

    So in your case I would assess your qualification in say July, where you will, not qualify as you earning in that tax year will be zero.

    0
    0

    Thank you.  I have had acknowledgement from HMRC that I don't have duties now so at least the worst I could be accused of later on is making a mistake (which I hope I haven't) rather than ignoring a deadline.

    0
    0