NEWS

Auto-Enrolment Pension Contribution Rise

From 6 April 2018 the level of minimum contributions which must be paid into a qualifying pension scheme under auto-enrolment went up to 5% of qualifying earnings, of which employers must make a minimum contribution of at least 2%, with employees contributing the balance. Prior to 1 April 2018, the minimum contribution was 2%, of which employers were required to contribute a minimum of 1%. Employers should ensure that they are meeting the new minimum contribution requirements, and advise employees of the increase in their contributions from 1% to 3%.

The pension annual allowance remains unchanged at £40,000 for 2018/19. Unused allowances can be carried forward for up to three years. However, as previously, the annual allowance is reduced where income excluding pension contributions is £110,000 or more and income including pension contributions is £150,000 or more. Where this is the case, the annual allowance is reduced by £1 for every £2 by which income exceeds the £150,000 limit until the minimum allowance of £10,000 is reached. Consequently, anyone who has income of £210,000 or more (inclusive of pension contributions) for 2018/19 will only receive the minimum allowance of £10,000.

For 2018/19 the money purchase annual allowance remains at £4,000.

The lifetime allowance is increased in line with inflation to £1,030,000 for 2018/19.

 

30/04/2018

Latest news...

11/10/2018

Tax & Your Business - Survey

The Office of Tax Simplification (OTS) is seeking the views of businesses about their day-to-day dealings with tax and its impact on their business.  It particularly wants to hear from small businesses and 

READ MORE

Newsletter Sign Up

Sign up to keep in touch to receive our latest news and industry updates.



Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.



REF: MC/NL/1.0