According to a recent research done by Her Majesty’s Revenue and Customs (HMRCs) their report stated the figures which directed that most of the highest earning self employed are turning backs on the pension plans offered by the current government.
Her Majesty’s Revenue and Customs (HMRC’s) one of the latest personal pension data and statistics newscast highlighted all the barriers/hurdles faced by the government to uplift enthusiasm for saving for the pension plans to self employed.
Government there after published it’s review in the year 2017 in December into auto enrolment expresses it’s plans that includes the best method to increase the idea of savings by some specific tools and tricks. Now auto enrolment is a scheme where employees save a certain amount of their pay on regular intervals to form pension there after.
But the Her Majesty’s Revenue and Customs figures showed the pros and cons that is the auto enrolment to pensions and the amount spend on them.
Hargreaves Point of View
Hargreaves Lansdown is the United Kingdom’s highest ‘Investment Supermarket” which help the private investigator basically has compared the two to find out the most productive tax rate relief given for pension’s contribution for the self employed. Hargreaves Lansdown pointed out that in the year 2016-17 the most productive tax rate relief was up to 40 percent which meant that there maybe few basic tax payers who are taking advantage of the plans of savings for pension’s.
One more important thing to note was that a self employed contribution data figures for the year 2017-28 was found to be missing from the latest report shown, which form a backdrop in the scheme.
Moreover, a Hargreaves Lansdown senior analyst once expressed his views by saying that the more we dig deeper into the systems of schemes and stuff, the more clues we get about how some of the self employed whose earnings are in larger scale don’t support the concept of pensions. All these in a way indicates that most pressure is on the government’s working nature where they encourage various ways to boost savings on pension among the self employed and if the results come in negative than more pressure and ideas will be required to make the objectives successful. A report shows that a self employed people who earn quite more enough have stopped applying for government pensions. The numbers are considerably low and declining from those during the year 2017-18.
All these led to a conclusion that the government incentives need more boost and efforts to strengthen the scheme and most importantly avoidance of fraud and errors like those of missing figures in the latest reports. A good scheme with good returns will obviously attract the self employed and make profit to the government.