I know its January and I know we are all busy with Tax Return filings but equally as they say “Life goes on” and as many of us are processing our client’s Workplace Pension schemes here is a timely reminder that from 6 April the rate of minimum deduction is increasing.
So for the employer the minimum rises from 1% to 2% and for the employee from 1% to 3%. Obviously if deductions are already above these new minimums nothing need be done but for all others it is important that the deductions post 6 April are made at the correct rate.
At some stage it is advisable to let your clients know about the increase in their contribution and also to make sure that the staff are duly informed as well that their deductions are going up.
It will be interesting to see if many staff on seeing the increase avail themselves of the option to opt out but as they say “time will tell”