Pensions information and advice provided by an employer to their workforce as a whole (e.g. a presentation to which all employees are invited to attend) is unlikely to give rise to any tax charges.
However, where an employer pays for one-to-one sessions to provide advice to employees, as a general principle a tax charge will arise on the cost of the advice as this represents an employment-related benefit.
But since 2004, employees could escape a tax charge provided that:
- similar advice is offered to all employees, and
- the nature of the advice does not extend beyond pensions into general financial, and particularly tax, advice and
- the cost is no more than £150 per employee per year.
If the cost of the advice exceeds £150 per person the whole amount is taxable, not just the excess over £150.
If you’d like to discuss the tax implications of workplace pensions, please feel free to contact your local TaxAssist Accountant.