Workplace pensions and special circumstances

May 4, 2017

Puzzlied personNot all situations are clear cut when it comes to workplace pensions for your nanny and it’s important that you do the right thing, otherwise you may end up with a fine.

We look at some of the special circumstances that can occur and explain what you need to do in each one.

  • Your nanny doesn’t qualify to be enrolled in the scheme

Only nannies who are over the age of 22 and earn more than £10,000 a year need to be automatically enrolled into a workplace pension scheme.  If your nanny earns less than this you might not have to have a scheme in place by your duty date (the date on which you first employ a nanny).  But this doesn’t mean you can ignore workplace pensions altogether.

You will need to write to your nanny about their pension options and you will need to submit a declaration of compliance to confirm that your nanny wasn’t eligible to be enrolled at your staging date.

Your nanny can ask to join a scheme and if this happens you’ll need to go through the process of choosing and setting up a workplace pension scheme.

More on what to do if your nanny doesn’t qualify for auto enrolment

  • No longer an employer

If you did have a nanny and were issued with a staging date by The Pensions Regulator (TPR), but no longer have a nanny and don’t run a PAYE scheme, you must let TPR know.  If TPR thinks you’re an employer and you miss your staging date you may get a warning, followed by a fine.

We can get in touch with TPR and submit the relevant form on your behalf, for a small fee, please get in touch for details.

If you subsequently re-employ again in the future, your workplace pension duties with be effective from your nanny’s start date.

  • Employee temporarily absent

If you have a nanny that’s away on maternity leave or on sick leave and not earning enough to qualify to be automatically enrolled into a workplace pension scheme, you’ll need to follow the usual process of writing to your nanny when you reach your staging date and of completing a declaration of compliance.