Patricia Grant Bcom CA
Stephen Grant Bcom CA
Marita Scott BA(Hons) CA
From April 2018 the level of minimum contributions which must be paid into a qualifying pension scheme under auto-enrolment went up to 5% of qualifying earnings.
Employers must make a minimum contribution of at least 2% with employees contributing the balance. From April 2019 the total will rise to 8% of which employers will have to contribute 3%.
The annual pension allowance is unchanged at £40,000 and unused allowances may be carried forward for up to 3 years. This annual allowance is reduced where income exceeds £110,000 by £1 for every £2 in excess of that level. Under thsi rule the allowance cannot fall below £10,000.
The money purchase allowance which applies in certain circumstances such as where an individual has already taken pension drawdown has been reduced to £4,000.