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After a number of extremely useful face-to-face discussions, subsequent analysis on what would be best for my individual circumstances and thorough market search for the most advantageous offers, Stuart McNeil was able to successfully complete the whole process within a matter of weeks. Not only because Gary and his team did a fantastic work organising my pensions, but they also explained and designed a pension plan which now makes me feel more secure about my future.

0000050103 00000 n This means some workers can be left with an annual allowance of just £10,000.

xref 0000002915 00000 n tapered annual allowance would be £37,000 (£1 reduction for every £2 over adjusted income). Lΰ3�phbg``��v�d:wj��#�fߞ��l��hx��n�����X�`va@�����b��oB�� ��� 0000021784 00000 n However, some are calling for the tapered annual allowance to be scrapped altogether.

Your pension income could also be affected by the interest rates at the time you take your benefits. %%EOF

When you’re saving into a pension there are two allowances you need to keep in mind: the annual allowance and the lifetime allowance. 6 0 obj <> endobj xref “The tapered annual allowance is complex and makes it very hard for taxpayers to know where they stand.

Your standard Annual Allowance of £40,000 is reduced to a minimum Tapered Annual Allowance of £10,000. He made what is generally a complex area very clear and this enabled me to make the decisions I made with the benefit of knowing, and indeed finding out, how professional and efficient the review service is. 0000000016 00000 n Registered Office: Simply Pensions, Kingfisher Business Centre, Burnley Road, Rawtenstall, Rossendale, Lancashire, BB4 8ES. 0000015949 00000 n

0000013487 00000 n Sign up to our newsletter for updates from the Simply Pensions team.

Using Simply Pensions has given myself and my wife peace of mind.

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Company number: 04232354.

0 If you’re affected by the tapered annual allowance, it’s important you manage your pension contributions. H�\W;�+G�u����M��;pl8��}��ۻ�8#i����E����VK-c���,��]����k���Ï����^�1��_���n���,���?���.Vx��Y�����+fy|���nw�n��_w//i�Q�}��a��1��O.L\���:��NA��;��wpO�ƣXm�U��W�TkK�Ӻ�i2^j�Ŏ�����^���DŽ�~�y�걧A�w�E�ލ�@ܽ�-xp�|;Ɣ�v��q���w��\38��[0 �k�yN�εv�ፗ,h%t{�8BDˎ $�`)4�#|�28�1(12����)�E�Œ_��\���}��.

I would certainly recommend them to anyone seeking pension transfer advice. The tapered annual allowance will not apply if a member’s ‘threshold income’ is £200,000 or less, even if they have adjusted income of £240,000 or more. 0000064838 00000 n First, what are the definitions of threshold and adjusted income?

6 32

From 6 April 2020 this reduced to £4,000. 0000050186 00000 n

0000003855 00000 n Please note: A pension is a long-term investment. 0000002778 00000 n

0000001802 00000 n 0000009433 00000 n 0000009458 00000 n It’s worth noting that unused annual allowance from the previous three tax years can be carried forward.

This can help make the most of your savings and reduce your tax liability. 0000005376 00000 n 0000010014 00000 n

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0000003052 00000 n 0000028548 00000 n For every £2 of income you have over £240,000, your annual pension allowance is reduced by £1. Tapered Annual Allowance. As a result, Matt Hancock, Secretary of State for Health and Social Care, has stated there will be an ‘urgent review’ into the tapered annual allowance for pension relief.

0000045909 00000 n David’s total pension contributions of £39,000 would have been within the standard annual allowance of £40,000, but as this will be over his tapered annual allowance of £37,000, he would be subject to an annual allowance charge on the £2,000

0000001168 00000 n However, it’s not as simple as having an allowance that applies to every worker.

But it’s not just NHS staff that should ensure they understand how it works. Stuart is always available and always returns calls.

0000056010 00000 n

For those few affected by the tapered annual allowance, the maximum reduction is £30,000, so the minimum annual allowance is £10,000.

Gary is a master in translating a dry subject such as pensions into very clear and simple language for people like me who could never understand this complex subject. This has led to some senior members of staff turning down additional work over fear they will need to pay out more. 0000001915 00000 n This means that from 2020/2021, the threshold income will be £200,000; those employees that earn below this level will not be affected by the tapered annual allowance.

0000019136 00000 n The Tapered Annual Allowance (TAA) came into force as of 6 April 2016 for high earners. Simply Pensions Ltd is registered in England & Wales. After a recent change of control within the company and uncertainty on future work prospects, being largely unsure on how to go about it, I contacted Simply Pensions for advice on how best to realise an annuity purchase on my work and private pension plans. 0000054017 00000 n

As the name suggests, the annual allowance dictates how much tax relief you can receive in a tax year, whilst the lifetime allowance refers to the total amount over your working life. Threshold income is your annual income before tax, less any personal pension contributions and ignoring any employer contributions, Adjusted income broadly covers all income that you are taxed on, this may include dividends, savings interest and rental income before tax, plus the value of your own and any employer pension contributions. 0000045217 00000 n 0000001273 00000 n trailer <<88A17CEEEE26477894A638F41287BEC1>]/Prev 101828>> startxref 0 %%EOF 37 0 obj <>stream 0000004236 00000 n

I found him professional, clear, transparent and very honest.

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0000003603 00000 n Some of the advice is given in writing too, to give me more time to consider options and act as a point of reference later if needed.

Rossendale, 44 0 obj <>stream 0000001692 00000 n Planning around the tapered annual allowance - five traps to avoid 14 April 2019 More pension savers have faced an annual allowance (AA) tax charge since the …

In some cases, your allowance may be significantly lower. Tapered annual allowance. is therefore targeted at consumers based in the UK. 0000010986 00000 n There are several key things to do if you’re worried about the annual allowance. For every £2 your income exceeds the threshold, your annual allowance will reduce by £1. 0000085916 00000 n BB4 8ES. 0000055807 00000 n

0000012284 00000 n Simply Pensions have taken away all the stress of dealing with personal finances. One of the reasons for this is the tapered annual allowance. I found the help, advice and overall service offered by Stuart to be extremely professional with the utmost understanding and thought given to what was best for my situation. %PDF-1.7 %���� I decided to seek financial advice as I had some money to invest and was approaching the age of sixty, meaning pension decisions would soon be approaching. For those on the very highest incomes, the minimum level to which the annual pension allowance can taper down is £4,000. Rawtenstall, If you earn more than £110,000 from all your sources of income, you’ll be affected by what’s known as ‘Tapered Annual Allowance’. Budget 2020: Chancellor Rishi Sunak announced today (11 March 2020) that that the tapered annual allowance threshold for pensions tax relief will be increased by £90,000.. I approached Gary because I wanted to consider a Final Salary pension transfer and he had been recommended to me. Stuart McNeil was recommended to me and it is the best decision, financially, that I have ever made. 0000011241 00000 n

If your threshold income if over £110,000 or your adjusted income is over £150,000, you could be affected by the tapered annual allowance.

startxref Exceed your annual allowance and your pension contributions will not be legible for tax relief. 0000008861 00000 n

0000004157 00000 n The solution is to abolish the taper outright, even if this means a lower across-the-board annual allowance for all.”.

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0000004192 00000 n 0000000016 00000 n Whilst the review is good news for NHS staff, there haven’t been any suggestions that it could be extended to other industries. The annual allowance was not affected by the tapering in tax years prior to 2016/17, although it may have been affected by the money purchase annual allowance from 6/4/2015. 0000001276 00000 n He took me through absolutely everything pros and cons-wise, which put me in a position where I could confidently make decisions around my pension provision. If you’re affected by the tapered allowance, it can be even more challenging.

If your threshold income if over £110,000 or your adjusted income is over £150,000, you could be affected by the tapered annual allowance. 0000001950 00000 n The tapered annual allowance has been featuring in the news due to the issues it’s causing in the NHS. 0000007032 00000 n This article was published on: 14th January, 2020. 0000054511 00000 n

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0000085847 00000 n 0000055929 00000 n (gross income including pre-pension contribution earnings, including savings and pension income as well as the value of your employer’s pension contributions), £1 of annual allowance will be lost. The Secretary of State for Health and Social care has announced there will be a review into the impact of the tapered allowance and its impact on NHS staff. These two allowances limit how much you can save tax-efficiently in a pension. Effectively, this mechanism reduces your Annual Allowance on a phased basis from £40,000 down …

I am very pleased with the professional service that Simply Pensions have provided in the process of transferring my deferred pension through to setting up a SIPP and its ongoing administration. 0000000936 00000 n High earners within the NHS have found they can face an unexpected tax bill if they work overtime or receive a pay increase.

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From 6 April 2016, your Annual Allowance was reduced by £1.00 for every £2.00 that you had gone over the limit.