Tax-efficient remuneration with pension contributions

2019-09-02T11:29:35+01:00July 10th, 2019|Categories: Blog, Personal Finance|Tags: , |

Tax relief is generally available on pension contributions at the taxpayer's highest rate of income tax paid, meaning that basic rate taxpayers get relief on contributions at 20%, higher rate taxpayers at 40%, and additional rate taxpayers at 45%. In Scotland, income tax is banded differently, and pension tax relief is applied in a slightly different way. Pensions are a particularly tax-efficient form of savings since nearly everyone is entitled to receive relief on contributions up to an annual maximum regardless of whether they pay tax or not. The maximum amount on which a non-taxpayer can currently receive basic rate [...]

Automatic Enrolment for Pensions

2019-09-01T12:04:08+01:00May 1st, 2017|Categories: PAYE|Tags: , , |

To encourage workers to start building up retirement benefits, the Pensions Act 2008 introduced certain reforms requiring all employers to offer workplace pension schemes and to enrol eligible workers into their schemes. These reforms are commonly known as the 'automatic enrolment' provisions. Automatic enrolment is currently being phased in, starting with the largest UK employers - eligible employees should have been enrolled by 1 February 2018 at the latest. By October 2018, all existing employers will be required to offer workplace pensions to eligible workers. Broadly, 'eligible workers' are workers who: - are aged between 22 and state pension [...]

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