Hot Issues & Breaking News

April 2009

2009 Budget summary: CLICK HERE to open

April 2009

Pensions

You can now contribute as much as you like into any number of pension schemes (personal and/or company) each year, and there is no upper limit to the total amount of pension saving you can build up. But there is an annual allowance limit above which contributions will be taxed. The allowance for the tax year starting 6 April 2006 was be £215,000 and will rise each year until it reaches £255,000 in 2010; at which point it will be frozen until 2015/16.

From April 2011, people with taxable income of £150,000 or greater will have their tax relief reduced from 40% to 20%. Legislation is to be introduced to prevent attempts to anticipate the change.

February 2009

Holiday Rights for Long-Term Sick

Businesses need to take note of a recent decision of the European Court of Justice, which clarifies that employees who are on long-term sick leave do not lose their right to paid annual leave, and must be compensated for annual leave not taken. This ruling now needs to be considered by the House of Lords. Until that time, businesses can review their policies and prepare themselves for the inevitable increase in costs.