Employers fear taper ‘nightmare’ as deadline looms
Almost nine out 10 employers want the government to scrap the annual allowance taper, according to research by Hargreaves Lansdown, which has warned of an impending “nightmare”.
The annual allowance taper comes into effect on 6 April 2016, and one in three employers told the Bristol-based firm it would have either a very significant or significant effect.
The taper is a reduction to the standard £40,000 annual pension contribution allowance, based on an individual’s total income for the tax year and affects those with annual incomes of between £150,000 and £210,000.
Comments from Claire Trott, Head of Pensions Technical at Talbot and Muir.