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.
- Anybody heard of Geniac, the new De Lorean? 116 2
- are receipts needed? 521 14
- Gift of property & improvements 138 3
- General tax book with planning 191 3
- VAT Invoice 190 6
- VAT code for invoice from not VAT registered company 276 5
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 235 9
- Error in past Corporate tax return 374 6
- Limited Company - Personal Bank Account 3,261 69
- 2013/14 failure to submit end of year submission 306 11
- Company overdue but wants to be struck off 817 32
- IHT and Swiss Property 139 1
- Sale of house with planning permission - tax free? 251 3
- Vat code for journal entries of director's expenses 170 2
- Claiming VAT and missing receipts 476 10
- HMRC overreaching its powers -again against a small surveying firm? 397 8
- Help with tax codes on Sage 265 1
- Letting relief on property transferred to a spouse 215 6
- Accounting for a finance lease 179 4
- SA302's anyone?? 552 16
- Skandia using wrong address 1,621
- Nil Rate Band Trust - index linked debt by way of charge over property 902
- International interest certificate 513
- NOVA 369
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 302
- Management expenses for investment company 268
- Bonus Bonds 262
- Entertainer withholding tax in Australia 176
- tax on apprenticeship income 175
- P11D benefit received by widow 153