Hello
Please can I check with you all. Are employer pension contributions deductible for corportion tax from a business irrespective of the amount?
ie, The individual may suffer a restriction due to the annual allowance, but the employer is entilted to the deduction for corporation tax even if the annual allowance (or for that matter - the lifetime allowance) are exceeded?
Thanks for you help
Replies (30)
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Are employer pension contributions deductible for corportion tax from a business irrespective of the amount?
You mean like "wholly and exclusively" for the purposes of the trade?
Sorry no.
I mean for example: Employer makes a 200,000 pound contribution during the year. Is this all allowable for the employer? But there will be a restriction on the relief for the individual - ie due to annual allowance?
No, it is not possible for a company to claim tax relief on amounts paid out for pension contributions that exceed the amount that would be "wholly and exclusively" for the purposes of the trade. If it's a £200k pension contribution for the £5m pa CEO you would probably be OK. If it's for the young lad who helps out on Saturday mornings, I'd say not.
The individual's tax position is considered separately from the payer, as far as I am aware.
Enter details in boxes 10 and 12 of page Ai4 (additional information pages) of SA return.
Why do you think that the individual should have any relief for a contribution made by his employer?
Why do you think that the individual should have any relief for a contribution made by his employer?
Ruddles' reply to you seems highly relevant and helpful. Whatever either of you has said previously I don't know how you expect to be able to post questions here on a free forum and then try to vet who responds to them?
I'd appreciate it if he did.Obviously anyone can respond.
I'd appreciate if Ruddles doesn't.
Of course the mature response would have been to just ignore the question.
Or perhaps to answer it.
This is something new!
A poster asking for a specific member not to comment.
Are we in the school playground here?
Pathetic.
The only reason that I chose to post on this thread was to ask a reasonable question - why do you think that an individual should be entitled to relief for employer contributions.
If you can’t deal with such responses, then I’d appreciate it if you refrained from posting on A Web in the future.
Whatever. Rest assured that I will continue to reply to yours.
‘Pathetic’ doesn’t even begin to describe your attitude.
Ruddles, you seem to know what you are talking about. May I ask you a question?
Am I right in thinking that employer contributions are part of the pension input amount? If so, could there be a pension input excess purely by reference to employer contributions?
If your (three) answers so far are (all) in the affirmative, could there be an annual allowance charge on the individual notwithstanding that they pay not a penny into a pension?
You and SteLacca have gone all Harry and Sally on me - that's quite the two most orgasmic replies I think I've ever had.
OP, get over yourself [so to speak]. Good advice is good advice, it matters not whence it comes. With tax advice, you can even make sure it's good - look up the rules yourself.
Why do you think that the individual should have any relief for a contribution made by his employer?
To be fair to the OP (I know, I know... you don't need to tell me), s/he hasn't actually quite said that.
If that is what s/he thought, hopefully s/he does so no more.