.png)
.png)
16 February 2016
What are the consequences of increased auto-enrolment pension contributions?
My client earns £250 000 a year from his employer; it is not his company.The annual pension payments will soon be restricted to £10 000. Th e pensions auto-enrolment legislation means that he must pay pension contributions of 1%and his employer must also pay premiums equivalent to 1% of his salary.
Next year I believe that these contributions will increase to a combined amount of 5%. On a salary of £250 000 5% is more than £10 000 so does this mean that complying with pension law will trigger a horrible tax charge?
Just to complicate matters further I presume that the potential adverse tax charges will get even worse when the combined amount increases to 8% the following year? Surely the government did not intend pensions auto-enrolment to cause tax problems for employees.
...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
