PSI21.1.16 - Centralised Schemes: General - Employer with No Employees

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

When a centralised scheme is first established participation should be confined to active employers. You should not agree to participation by a company which has no employees, particularly if scheme membership includes controlling directors. Exceptionally, a holding or management company which while having no employees itself, nevertheless co-ordinates the group’s activities, may participate in a centralised scheme established for the companies it controls. Typically, in this situation the holding or management company will be paying the contributions to the scheme and seeking reimbursement from its subsidiaries/group companies via a service or management charge.

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