Autumn Budget 2021: Net-pay scheme members to get 20% top-up from 2024

Addresses low-paid anomaly in tax relief treatment

James Phillips
clock • 2 min read

The government has set out plans to address the net-pay anomaly with a 20% top-up to contributions from April 2024.

As part of the Autumn Budget today, the Treasury said it would introduce a system to make top-up payments to low-earning individuals in a net-pay arrangement. Spending Review 2021: Improved growth and 'scarring' forecasts boost spending but Sunak tightens borrowing rules Currently, savers whose earnings fall below the personal tax threshold, and are members of net-pay schemes, lose out on 20% tax relief which is automatically applied to savers in relief-at-source schemes. The majority of master trusts use this structure, which has previously been described as a "hidden scandal". ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week