The following Employment Tax guidance note Produced by Tolley in association with John Hayward provides comprehensive and up to date tax information covering:
The annual allowance in relation to registered pension schemes is the maximum amount:
by which a member’s benefits can increase in a pension input period (PIP) (in respect of defined benefit schemes)
that can be contributed to pension arrangements in a PIP (for defined contribution or money purchase schemes)
See Example 1.
If the annual allowance is exceeded, there is a tax charge (the annual allowance charge) on the member. See Example 2.
The annual allowance covers all contributions whether made by the member or any other person, eg the member’s employer.
Following the Finance Act 2004 reforms, the annual allowance reached £255,000 in 2010/11. The annual allowance for 2011/12 to 2013/14 was £50,000. The annual allowance reduced to £40,000 from 2014/15, and has since remained at that level. Pension scheme administrators are required to provide a standard pension savings statement to a member if that member’s pension input amount exceeds the general untapered annual allowance of £40,000 (see below).
From 2020/21 onwards, pensions tax relief will be restricted for those with ‘adjusted income’ (ie taxable earnings including any member and employer pension contributions but excluding charitable contributions) of over £240,000. From 2016/17 until 5 April 2020, it was restricted for those with ‘adjusted income’ of above £150,000.
From 6 April 2020, for every £2 of adjusted income over £240,000 an individual earns, that individual’s annual allowance is reduced by £1. The maximum reduction to the annual allowance is £36,000, so that anyone with adjusted income of £312,000 or above has an annual allowance of just £4,000.
From 6 April 2016 until 5 April 2020, for every £2 of adjusted income over £150,000 an individual earns, that individual’s annual allowance was reduced by £1. The maximum reduction to the annual
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The supply of fuel and power is treated as a supply of goods for VAT purposes. Supplies are fuel and power are normally liable to VAT at the standard rate. However, providing certain conditions are satisfied, it is possible for suppliers to charge the reduced rate of VAT on certain supplies of fuel
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Why defer a gain?An individual’s net taxable income and chargeable gains for the tax year influence the rate of tax payable on their capital gains. See the Introduction to capital gains tax guidance note.Depending on the nature of the asset disposed of, this can result in the individual paying
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to