Taper troubles: how to prepare for annual allowance changes
Claire Trott
Head of pensions technical at Talbot and Muir
When calculating earnings in order to work out the amount of tapering on the annual allowance, advisers need to look at all income, not just salary.
Everything that is subject to income tax, including things such as rental property, are included. Higher earners tend to have other assets so it is not just earned income that has to be taken into account when calculating the taper of the annual allowance. I can see a lot of people not being able to calculate how much annual allowance they will get.