HMRC Research Questions A-Day Reforms
Iíve just been reading two research reports that were produced for Her Majestyís Revenue & Customs (HMRC) by an independent research company.† One of the reports sought the views and opinions of employers and the financial services industry and the other the views and opinions of individuals.
In both the respondents were asked about their attitudes to the pensions tax regime before and after A-Day and the impact that the changes had had.† The results of the research are intended to be used as a kind of baseline for future research into any further pension tax reforms and, to some extent, question the success of the reforms made to date; theyíre not particularly positive, put it that way.
Iíve attached a link to each of the reports at the end of this BeeLine in case you want to read the whole thing, but Iíd point out that the employer and financial services one is a whopping 152 pages and the individual one is 76 pages long.† So you might prefer to read them on your screen rather than print them out.† Then again, you may not I guess.† Itís up to you.
Anyway, some of the main findings may interest you Iíd say, so hereís a snapshot of the findings:
- Only 51% of employers reported that they were actually aware of A-day. Many employers had failed to implement many aspects of the new regime; for example, only 15% of employers had introduced flexible retirement options since A-day.
- Transitional costs were incurred by only 24% of employers (perhaps understandable given the low awareness). Of these, the median costs incurred were £80,000.
- 68% of employers thought the new regime†complex, compared to 71% who thought the same about the old regime.
- Over 80% of employers were unable to cite any advantage or disadvantage of the new regime.
Here are the reports for you if having read the trailer you now want to read the full Monty:
22 September 2008
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