An estimated 1.75 million people are missing out on £60m in tax relief on their pension contributions in 2019/20 as the so-called net-pay anomaly continues, Royal London has estimated.
The figure was calculated after the insurer put forward a Freedom of Information request to HM Revenue and Customs. The tax office's response showed 1.33 million people earning below the personal allowance were saving for retirement in a net-pay arrangement in 2016/17, when the income personal tax allowance had risen by £400 to £11,000. Therefore, the insurer estimated that the extra £400 on the personal allowance - alongside the rollout of AE - brought an extra 110,000 people into the net pay arrangement. Savers whose earnings fall below the personal tax threshold and are members of ...
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