With the reduction in tax relief for certain employees on pension contributions from 6 April 2016, are employers and employees ready?
Employees need to understand how the rules apply to them or they could face a large tax bill, which could come as a surprise. Outlined below are some of the important questions that they should now be considering:
- What should an employer advise/communicate to its employees?
- As the changes also impact those working in the UK but who are members of foreign pension schemes, will the employer pay any of the excess tax?
- What happens if rules of a foreign scheme require the foreign employer to contribute more than the amount on which relief can be claimed?
- Are current pension arrangements now appropriate or should you consider an alternative strategy (e.g. cash)?
If you wish to discuss any of these issues, please contact Blick Rothenberg partner Mark Abbs at email@example.com