In an article for Taxation magazine, UNW's Lee Muter and David Paul throw some light on some of the current topical aspects surrounding pensions and the related tax and National Insurance implications.
Key points
- Tax relief for occupational schemes depends on the method adopted by the employer with their registered pension scheme – a ‘relief at source scheme’ (RAS) or a ‘net pay’ arrangement (NPA).
- The employer must ensure the pension scheme is set up correctly on its payroll system to avoid making errors in tax relief.
- New measures are being introduced from April that will affect individuals who save into an occupational pension under NPAs, but whose total taxable income is below the personal allowance.
- Advantages to employer and employee of using salary sacrifice for pension contributions.
The full article is available for download here.
This article originally appeared in Taxation magazine and is reproduced here with the kind permission of LexisNexis.
