Our research shows that 57% of employers believe the reductions in lifetime and annual allowances being introduced from April 2016 will impact their staff with 14% affecting a significant number.
HMRC have estimated that the reducing annual allowances will impact over 300,000 employees.
This could mean that people could face a tax bill without even realising it.
It is imperative that companies communicate these changes and give their staff access to specialist guidance and advice to help them to be aware of the changes and the planning opportunities available.
Some 14% of respondents expect the April 2016 reductions in lifetime and annual allowances to affect a significant number of staff, according to the Employee Benefits/Close Brothers Pensions research 2015. From April next year, the annual allowance for those earning more than £150,000 a year will be tapered down to a minimum of £10,000, while the lifetime allowance for pension contributions will be reduced from £1.25 million to £1 million from 6 April 2016. In addition, more than a quarter (26%) of respondents surveyed in September 2015 believe the reductions will impact a small number of employees, while 17% expect these to affect senior management. However, less than one in 10 (7%) of respondents say their organisation will be unaffected by the changes, while a further 13% say the impact on their organisation will not be significant.