Employer pension contributions

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Query has come via a clients financial advisor but basically Director/Shareholder would like the company to pay his wife (she has started working for the business), however instead of paying her a salary they have agreed that they wish it to be made solely as an employer contribution into her pension scheme. 

IFA is saying this is only possible if she has earnings from the company also but surely they can choose whatever combination they wish?

Amount is small (£10k per annum) and is reasonable based on her role in the business (part time) 

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By Wanderer
18th Jan 2022 17:07

National Living Wage requirements?

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By nrw2
18th Jan 2022 17:11

National living wage may not apply if director, insufficient information here!

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Replying to nrw2:
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By Wanderer
18th Jan 2022 17:33

Likely from the OP's wording that the wife isn't a director.

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By nrw2
18th Jan 2022 17:08

An employer pension contribution can be made without being PAYE registered or any other earnings (addressing just this point, ignoring other compliance elements).

IFA has some homework to do.

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By Jigs
19th Jan 2022 07:55

Thank you all, much appreciated.

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