Employment law manual updates: Pensions and pay and benefits
The Employment law manual has been updated to take into account changes affecting pensions and pay and benefits, from 6 April 2016.
- State pension: The single-tier state pension comes into effect for those reaching state pension age on or after 6 April 2016. This has resulted in the abolition of contracting-out for defined-benefit schemes.
- Pensions auto-enrolment: The deadline for notifying the Pensions Regulator about auto-enrolling ahead of the staging date has changed, as has the time limit for declaring compliance. The upper limit of the qualifying earnings band for auto-enrolment has increased. The requirements for defined-benefit qualifying schemes for auto-enrolment have changed as a result of the abolition of contracting out.
- Occupational and personal pensions: Amended to take into account the abolition of contracting-out and reduction in the lifetime allowance.
- Basic pay and benefits: The £8,500 threshold for the taxation of certain benefits is abolished. There is a financial cap on trivial benefits for them to qualify for a tax exemption. New tax rates for company cars and vans apply and there are changes to tax liability and reporting duties for expenses.
- Pay As You Earn: New income tax and national insurance thresholds come into effect and there is an exemption from employer national insurance contributions in respect of apprentices aged under 25. The employment allowance also increases.
