Group Personal Pension Error
Client with approx 200 employees has been deducting pension contributions incorrectly for several years.
Employees contribute 5% of gross salary so for example:-
Gross Monthly Salary £2,000
Pension deduction shown on payslip £100 (i.e. 5% of gross with no tax relief)
£100 is send to pension provider, pension provider recovers the tax from HMRC (thinking that company has given tax relief to employee).
So the employee's net pay has reduced by £100 instead of £80; the pension provider has recovered an extra £25 tax relief (as they assume the employee paid £125 less £25 tax relief).
Is this a PAYE violation? If so is the company liable to fix this & repay the tax.
Does the pension provider repay the tax?
Has anyone came across this situation & how was it handled with HMRC/Pension provide?
Many thanks for any comments.
- Workshops centred around Xero 447 12
- Limited Companies, Directors Employer Registration P11D 130 3
- Scams are not always obvious 672 19
- RTI, no payroll but BIK 98 1
- P60 from HMRC Basic Paye Tools 90 2
- VAT on long lease in comercial property thathas opted to Tax 84 3
- Related party disclosures 161 3
- Input vat on my fees after deregistration 173 2
- Charity Buildings and Zero-rated Vat 68 1
- Auto Enrolment, Payroll, Small Client Advice and what to charge? 603 17
- 100% FYA, do I have to cliam all of it in 1 year? 206 4
- Vat query - EU customer requesting invoice without charging vat 241 8
- Is this legal? 611 9
- Market Value/Connected Persons 178 7
- Saying NO to a time wasters 1,981 23
- Cells from many sheets 122 2
- Taxation of rental income 193 4
- notice of consent by surrendering company group relief 134 6
- Childcare vouchers 95 1
- Directors loan 1,403 9
- New Fangled Penalties 1,040
- Moving away from CCH software 900
- Recruitment agencies 525
- QROP pension input amounts 409
- write off loan or loan to equity swap or both 361
- Deemed Employment Payment 343
- HMRC BENCHMARK EXPENSES 306
- Unused Losses and Post Cessation Receipts 297
- EIS relief on transferring shares to spouse 216
- fraud 211