Pension fees paid by limited company

Pension fees paid by limited company

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I have a query from a colleague regarding fees for running a pension scheme being paid for by the limited company employer.  The employer created the pension scheme on behalf of its' employees and subsequently (without the matter being considered) carried on paying the fees for the running of the scheme.

I have been asked "is this a taxable benefit on the members of the scheme?"  I can't seem to find anything to suggest it isn't in ITEPA but it feels like it may not be taxable (relying on feelings when giving tax advice isn't the best way).

All comments and suggestions gratefully received - chapter and verse (ie legislation) on why it wouldn't be would be even more gratefully received!

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By duncanedwards
19th Jun 2014 23:49

What fees specifically?
Are the fees personal employee costs being reimbursed?

Does the VAT treatment shed any light:

http://www.taxation.co.uk/taxation/Articles/2014/02/12/320161/employers-... ?

What employees ultimately get from their company pension savings is subject to tax so is that not the tax "hit"?

Are the costs an effective pension contribution?

http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm04100050.htm

"Where an employer makes a contribution to a registered pension scheme on behalf of an employee the contributions are exempt from tax in the hands of the employee."

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