I suspect I am overthinking this, but I am considering timing of relief in the case where an employee is given a bonus and asks for it to be paid as a pension contribution direct to their fund on a group PPP where this occurs around the company year end.
- Year end is 31 May.
- In mid May employee is told they have been awarded a bonus to be paid in June.
- Employee asks for bonus to be paid as an addition to their GPPP and as that is made direct (effectively salary sacrifice) the contribution is made as a gross employer contribution and reflected in the June salary slip.
- Company shows pension contributions as outstanding at year end in the accounts to 31 May
Does the date that the employee asks for the bonus to be paid as a pension contribution affect whether or not relief adjustment for pension contributions paid in the AP is required in the company computation?
If the employee was considering how to take the bonus at year end and did not make the pension request until mid June then is there an argument that at year end there was an accrued bonus that was paid within 9 months and no tax adjustment is required in the comp, even though in preparing the accounts the company showed this as unpaid pension contributions because of the employees request post year end?