19 Question 19 USMAN & TRACEY (15 marks) Usman has just started a new job and has sent you the following email: 13 "My new employer offers a range of benefits. I am interested in joining the occupational pension scheme. I haven't made any provision for my old age before. My initial salary is 65,000 a year, but hopefully will increase in the next few years. I'm thinking of contributing 4% of my gross salary into the occupational pension scheme, my employer will match my contributions to the scheme. Could you please answer the following questions: 1. I have heard that there is tax relief on my contributions. How does that work? How much tax relief will I get if I contribute 4% of my gross salary? 2. Do I get taxed on any contributions made by my employer? 3. How much can I contribute to the scheme? I've heard something about an annual limit?" Required: a.Draft an email in response to Usman in response to his queries. (8 marks) Tracey, aged 30, is self-employed as an estate agent. Her trading profit for the year ended 5th April 2020 will be 65,000. Tracey is considering paying 4,000 (net) into her personal pension scheme in 2019/20. This will be the first year in which she had been a member of a pension scheme. 2 3 4 5 6 8 9 10 11 12 13 14 15