Jul
29
2010
Contractors' pension changes need close attention
Contractors using umbrella companies need to be aware of the issues relating to their pensions and the way they will change under the new coalition government, according to an expert.
Tony Harris told Contractor UK that Labour's cap on higher-rate tax relief for pension investment is to be scrapped by George Osborne and replaced by the coalition's new allowance of £40,000 a year, which is higher than some expected.
"As the pensions cap brought in by the previous government allowed regular investors to continue to benefit by maintaining the existing level of investment, this may be the case again," he stated.
The expert added that the treasury has promised to make contractors aware of any confirmed pension changes in September.
In other news, Rob Crossland, managing director of recruitment firm Parasol, said that contractors need to "spend a bit more time" on websites and forums finding information on services that umbrella companies can provide.
Tony Harris told Contractor UK that Labour's cap on higher-rate tax relief for pension investment is to be scrapped by George Osborne and replaced by the coalition's new allowance of £40,000 a year, which is higher than some expected.
"As the pensions cap brought in by the previous government allowed regular investors to continue to benefit by maintaining the existing level of investment, this may be the case again," he stated.
The expert added that the treasury has promised to make contractors aware of any confirmed pension changes in September.
In other news, Rob Crossland, managing director of recruitment firm Parasol, said that contractors need to "spend a bit more time" on websites and forums finding information on services that umbrella companies can provide.