Only nannies who earn more than £10,000 a year and are over 22 years of age need to be automatically enrolled into a workplace pension scheme. But as part of your auto enrolment duties, you’ll have to write to your nanny if he or she isn’t eligible setting out the rights to opt in, or join, a pension scheme.
Your nanny might ask you to join a scheme, known as opting in.
- Opting in by a non-eligible job holder
Non-eligible jobholders (anyone earning over £5,824 and up to £10,000) can ask to opt into a scheme and if they do, you’ll need to make contributions.
- Opting in (joining) by an entitled worker
You don’t need to enrol an entitled worker (earning less than £5,824) but these employees can ask to join a scheme. You won’t have to make any contributions to the scheme.
How employees opt in
If your nanny asks to opt into a scheme and you haven’t got one in place then you’ll need to set one up.
What to do if you receive an opt-in notice
You’ll need to assess your nanny to decide whether he or she qualifies as a non-eligible jobholder or an entitled worker. Carry out the assessment on the first day of the next pay reference period after you receive the opt-in notice. This will be your enrolment date.
If you receive an opt-in notice part way through the pay reference period you’ll need to assess the nanny on the first day of the next pay reference period.
The pay reference period is the frequency with which you pay your nanny – weekly, monthly or every four weeks
- Non-eligible jobholder (a nanny earning over £5,824 and up to £10,000)
If you’ve assessed a nanny as being a non-eligible jobholder then you’ll need to either:
Enrol the jobholder within six weeks of the enrolment date by following the automatic enrolment process
If you don’t have a scheme in place you’ll need to set one up within six weeks of the enrolment date and enrol your employee.
- Entitled worker (a nanny earning less than £5,824)
If your nanny falls into this category you have six weeks from the enrolment date to set up a scheme but it doesn’t have to be an auto enrolment qualifying scheme as long as it’s a tax-registered scheme.
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- Detailed guidance from TPR Opting in, joining and contractual enrolment