Employers leaving workers in the dark on expensive tax changes

Just three per cent of UK employers have offered their staff assistance in understanding major tax reforms, set to be introduced 6th April 2016.

It was announced in last year’s budget that the annual and lifetime allowances will be reduced from April, with conservative estimates suggesting these reductions may cause more than 300,000 employees to incur a tax bill.

Many will now need to review their pension plans and consider if and when they will break through these new allowances. But research from Close Brothers Asset Management, which interviewed 900 employees across the country, has found that most businesses have failed to take steps to help staff who will be affected.

Jeanette Makings, Head of Financial Education Services at Close Brothers, said the pension reforms have shown the need for financial education.