The Emergency Budget on 22 June 2010 made changes, which when combined with the forthcoming rise in National Insurance Contributions (NICs), increases the relative tax-efficiency of contributions to pension arrangements over other sources of long-term saving. This is particularly relevant where contributions are made via Salary Exchange arrangements.
The key changes relate to:
- National Insurance Contributions more
- Income Tax rates more
- Capital Gains Tax more
- Annual Allowance more
- Treatment of ‘high earners’ more
Significant savings can be achieved for employers where these tax efficiencies can be captured across a workforce of several hundred, or perhaps several thousand, employees.
Xafinity can assist you to consider the impact that tax changes will have, to make sure that your pension arrangement is as tax-efficient as possible for both members and the sponsor. The implementation of these approaches can be achieved in such a way that it reduces employers’ costs whilst increasing members’ remuneration packages.
Xafinity can also help you to ensure that all communications (including websites and interactive modellers) accurately reflect the tax changes to ensure that individuals correctly comprehend the affect of these changes.