Pensions & benefits
Are your employees impacted by the tapered Annual Allowance?
This case study infographic look at the tax impact for six individuals across DC and DB schemes who have 'adjusted income' above £150k.
What you need to know
- July 2015 Budget has confirmed that from April 2016, the Annual Allowance will reduce for those with 'adjusted income' of £150k or more
- 'Adjusted income' is not just income used for income tax - it will include the value of employer funded pension contributions/accrual.This includes salary sacrifice for DC schemes
- Individuals could end up paying very high rates of tax if they and their employers do not start planning now
How can we help?
- Review pension compensation to ensure it is in line with market practice and delivered in a practical and tax-efficient way
- Communicate changes, and explain the changing tax regime, to employees
- Provide seminars, one to one meetings, and online tax calculators to assist employees