When preparing GP accounts to 31/3/05 it is apparent that several of the partners are underpaid on 6% and 14% superannuation and others are overpaid.It is understood that the amount PAID should be entered on the individuals SAR.
It is also understood that the accounts to 31/3/05 should contain an accrual for the amounts underpaid. But should they also have a debtor for those GPs who are overpaid? It would be a lot simpler if the amount paid was debited to drawings with no accrual so that the amount in the accounts tied up with the self assessment returns. Of course some GP's will get tax relief on the amount paid even though they will receive a refund when the certificates are filed.
There are so many practical difficulties with this ill thought out system and there are any number of ways to deal with the above. Does anyone know the "right" way??
knuckles
Replies (6)
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'Employers' contribution to pension - deductible?
Since GP partners now fund the 14% 'employers' contribution, how do they claim relief?
Box 14.10 in the tax return? Or is this for 'employee' contribution only?
I thought relief is restricted to 15% of pensionable pay- am I right? If so, how do they get relief for the (6%+14%) deductions?
Employer's pension contribution
Hate to be the bearer of bad tidings but there is a suggestion that superannuation contributions should not be in your practice accounts. It is after all a contribution by the 'employer' to an employer's pension scheme and it is not therefore incurred wholly & exclusively in earning the profits of the trade.
See the latest information from the LMC.