Personal tax allowance hike could force up AE threshold to £9,440

clock

The auto-enrolment earnings trigger could be pushed up to £9,440 following a surprise increase in the personal tax allowance in yesterday's Autumn Statement.

Industry figures have expressed concern that fewer workers could benefit from auto-enrolment if the trigger is increased in line personal tax allowance, the amount earned before income tax kicks in. The chancellor revealed the personal tax allowance is set to rise to £9,440 in 2013 from £8,105 currently, £235 more than expected. The auto-enrolment earnings trigger stands at £8,105, but the Department for Work and Pensions (DWP) is currently consulting on raising this to £9,205 - the previous expected income tax threshold before yesterday's surprise rise. Allen & Overy pensions lawy...

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