Group Personal Pension Plans (GPPP)

Posted June 1st, 2015 by admin. Posted in Pensions

When we ask clients “are you in a pension scheme?” the usual response is “yes, we are in the company scheme”

How many really, really understand what this means?

We have evidence of this time and time again that what they are in is a GPPP.  This means that the employee’s contribution is deducted from their net pay.  The standard basic tax rate will have come off this but nothing more.

So if the employee is a higher rate taxpayer, the extra higher rate tax relief needs to be claimed from HMRC.

In our experience, many employees are missing out on the extra tax relief.

If it was me, I would be checking my GPPP and payslip to check.  Any refunds, I am sure, in these austere times, would be most welcome.  After all, this is a tax relief, and there aren’t many of those left!

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