From April, employees with an adjusted income of more than £150,000 and a threshold income of more than £110,000 will see their £40,000 annual allowance cut by £1 for every £2 of adjusted earnings above £150,000 to a minimum annual allowance of £10,000.

Research by employee benefits consultancy Portus Portus’s study among HR directors across a range of sectors shows 60% of companies will ensure staff are fully informed of new rules but will rely on higher earners to take action on pension contributions.

However, there are concerns that individual taxpayers will not have access to all necessary information to make this critical decision.

Just 8% of those polled are restricting contributions to £10,000, although some will enable employees to contribute more based on their annual allowance at the end of the tax year.

The shift of responsibility to employees could lead to a rise in unexpected tax charges, Portus warns, once the new rules come into effect.

The consultancy says the difficult issue for employees is identifying if they are likely to be caught by the lower allowance as definitions of adjusted income include any private income.

Steve Watson,  Portus Consulting commercial director, said: ‘Employers are taking action by ensuring the changes are communicated but the issue is so complex that people may not understand it.

‘Employees might not know what their annual allowance is until the end of the tax year and may struggle to keep on top of employer and employee contributions as well as the details of taxable income plus any private income and will risk unexpected bills.’

The research also shows some employers believe the main effect of the new lower allowance will not be felt until 2017/18 when carry forward provisions run out.'

To find out more about the changing pensions landscape, go to our Insight Pensions