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Old 12th Mar 2020, 11:56
  #77 (permalink)  
Sandy Parts
 
Join Date: May 2005
Location: home for good
Posts: 494
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Originally Posted by Bob Viking
I hope you’re right. If true, this is a significant good news story. Although, maybe a little late for some.

BV
Hmm - not sure I am. Reading into is a bit more and along with the current guidance on HMRC pages (https://www.gov.uk/tax-on-your-priva...nual-allowance), I think all he has done is increased the amount you can earn before the £40k limit gets reduced.
So previously, we all have £40K annual allowance BUT those then earning over £110K would have that £40K allowance reduced accordingly.
I think all he has done is raised that limit?
Therefore, we are all still limited to the £40K annual pension allowance but now only those earning over £200K will get the allowance reduced.
If so, we are still going to be hit with additional tax bill when NET earnings hit about £65K (using the 63% of earnings used for MOD pension 'contribution' figure).
Bummer.
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