Tax Pension Relief

FT Adviser reports “figures released by HM Revenue & Customs (HMRC) show a forecast of income tax pension relief of £24.1bn, which adds to £16.9bn for a national insurance exemption on pension contributions from employers.

Currently, employers have to make a minimum 1 per cent contribution to their employees’ pension, under auto-enrolment rules. These payments are exempted from paying national insurance under legislation published in 2006.

The cost with tax relief is expected to increase even further in the next few years, as the government plans to increase minimum auto-enrolment contributions, scrap the earnings band and lower the age threshold to 18-years-old.”  Read the full article here