Pension expert sees simplification tax loophole

Bee, head of pensions strategy at Scottish Life says current Inland Revenue pension simplification proposals mean employers could pay the full annual allowance for each employee without being subject to any extra tax. Husband and wife teams working together would gain in particular by choosing to pay themselves very little in salary while making maximum tax-relieved contributions to their pension schemes, he says. Under current law, the amount earned is directly related to the amount of pension allowed when retired. This means directors must withdraw a certain amount of money out of ...