Belfast Telegraph

Tax returns 'could help self-employed boost pensions'

By Vicky Shaw

Self-employed people's tax returns could be used as a way of "nudging" them to build up their pensions, according to a suggestion from two major insurers.

Those who are self-employed are not currently included in automatic enrolment into workplace pensions, but Aviva and Royal London have proposed a possible solution.

They suggest that self-employed people should be defaulted into pension saving as part of the annual self-assessment process. When they fill in their tax return, self-employed people could nominate a pension provider or scheme to receive any contributions and would have a sum automatically added to their total tax bill.

With standard rate tax relief, this would mean 5% of profits would go into a pension unless the person actively opted out.

They said the fact the contribution would go up and down in line with the ups and downs of someone's business would provide flexibility for self-employed people.

Belfast Telegraph

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