Occupational Pensions: Tax Allowances

(asked on 20th March 2017) - View Source

Question to the HM Treasury:

To ask Her Majesty’s Government what plans they have to ensure that employers and workers are told that net pay arrangement pension schemes may be unsuitable for workers who earn below the personal tax threshold, and that they face paying more than 20 per cent extra for their pension than if they were in a relief at source scheme.


Answered by
Baroness Neville-Rolfe Portrait
Baroness Neville-Rolfe
Minister of State (Cabinet Office)
This question was answered on 3rd April 2017

The Government has regular discussions with the Pensions Regulator on a range of issues, including workplace pensions.

Workplace pension schemes are chosen by employers and the Pensions Regulator (TPR) provides guidance on this in relation to automatic enrolment. The guidance covers the choice between net pay and relief at source schemes, and the implications of net pay schemes for employees who do not pay tax. It also points out that some schemes that use the net pay arrangement may have lower charges than schemes that operate relief at source.

All employers, including public sector employers, are expected to follow TPR’s guidance about providing their employees with relevant information on the arrangements for tax relief.

Reticulating Splines