The government has set out plans to address the net-pay anomaly with a 20% top-up to contributions from April 2024.
As part of the Autumn Budget today, the Treasury said it would introduce a system to make top-up payments to low-earning individuals in a net-pay arrangement. Spending Review 2021: Improved growth and 'scarring' forecasts boost spending but Sunak tightens borrowing rules Currently, savers whose earnings fall below the personal tax threshold, and are members of net-pay schemes, lose out on 20% tax relief which is automatically applied to savers in relief-at-source schemes. The majority of master trusts use this structure, which has previously been described as a "hidden scandal". ...
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