With the 7.5% tax hike on dividends, pension contributions for some will be a more attractive proposition. Certainly we would not want dividends being declared and then the individual paying privately into a pension when the company could pay directly and avoid the 7.5% charge.
With this in mind, can a company pay into an individuals private pension and obtain corporation tax relief or does a company pension need to be set up? If payments are allowed into a private pension, are there any procedures to follow? Presumably the pension company would need to be informed the contributions are now being made by the employer? Would the payments need to appear on wage slips? Any other things to consider?
Thanks
Replies (7)
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Good idea
Weren't employer contributions a good planning idea before the Budget was announced?
Why would the payments appear on a payslip, if they are company payments.
Have you seen the recent thread on the timing of such company contributions and CT relief?
Not just about CT relief
Not all personal plans will accept employer contributions.
Company plans often have better benefits and charging structures vary.
As always need proper advice on the implications