All UK companies have been allocated a staging date by TPR. Once this staging date has passed, companies that subsequently take on employees are required to have a work place pension scheme in place for their staff. Simply put, single director companies must have a scheme if they ever take on an employee.
While many single company directors in this situation choose to set up a work place pension scheme only after they hire someone, they often find that this happens once their business is beyond their staging date. A business’s staging date is fixed meaning if the business hires a member of staff after their staging date their options going forward, particularly in relation to which pension provider they can use, are limited.
Only a certain number of pension providers will accept new schemes from businesses that have passed their staging date. These Pension Pension providers tend to have high up front fees or ongoing fees for the life of the scheme, plus even charges that affect their staff. Therefore they should not get forced into a scheme that isn’t right for their business or their future workforce.