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Director's pension contribution

Director's pension contribution

I have an individual that was making personal pension contributions as a sole trader. Upon incorporation I have noticed this payment now comes from the limited company bank (they are sole director/shareholder). Upon asking the pension provider how they are treating it, they say it is '100% employee contribution'  therefore - is this to be classed as a personal payment and claimed on SA with relief at source or as a company 100% corp tax deductible contribution?

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By Ruddles
22nd Jan 2018 21:38

D’uh

Read your question again and you’ll see the answer right in front of you.

Caveat - the assumption is that the pension provider is correct and has not been provided with any instruction to the contrary.

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22nd Jan 2018 21:43

That's exactly what I thought-I have January insomnia thank you :-)

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22nd Jan 2018 22:48

Definitely to be classed as a personal payment and put on the SA return. That's the short and sweet answer.

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By PBH64
23rd Jan 2018 11:20

Either the contribution is an employer contribution or it needs to go through PAYE with NI charged. If it's treated as above it's been relieved twice as it's not been taxed as remuneration then it's been relieved under RAS .

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By Ruddles
to PBH64
23rd Jan 2018 11:28

Quote:

Either the contribution is an employer contribution or it needs to go through PAYE with NI charged.

There is a third option ;¬)

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23rd Jan 2018 12:42

I would use the third option that Ruddles alludes to. It is then being topped up by the government in order tho give 20% tax relief and if the employee is a higher rate taxpayer, he/she can claim higher rate tax relief via the tax return.

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