DWP to align AE limits with personal tax brackets

clock

The Department for Work and Pensions (DWP) has proposed to bring the auto-enrolment earnings thresholds into line with the personal tax limits for 2013/14.

It also wants to align the qualifying earnings bands, which set minimum contribution levels, with the National Insurance contribution (NIC) lower and upper earnings limits. Explaining the need for qualifying earnings bands, the DWP said in the consultation: "The difference between the earnings level that triggers automatic enrolment and the minimum contributions threshold produces a de-minimis mechanism. "This helps everyone who is auto-enrolled to pay contributions on a meaningful portion of their income. "For 2012/13 the de-minimis gap is £2,541, based on the trigger of £8,105 an...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read