Companies could be missing thousands of eligible workers out of their auto-enrolment plans because they wrongly believe they are classed as self-employed, consultants and a lawyer warn.
The Pensions Regulator published guidance earlier in the year warning employers could not rely on a person’s tax status or any other single factor to determine if they were a worker or self-employed. But Charles Russell partner Caoimhe O’Neill said an audit of one client’s workforce had identified 1,000 extra eligible workers that the company did not realise would have to be auto-enrolled. O’Neill explained: “It’s not clear legally – just because you have designated someone as self-employed doesn’t mean they are, and we are advising clients to assume people are workers if there is any...
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