Employer pension contributions

Didn't find your answer?

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)

Please login or register to join the discussion.

avatar
By Accountant A
17th Oct 2017 13:17

rae10000 wrote:

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?

Thanks (0)
Replying to Accountant A:
avatar
By rae10000
17th Oct 2017 13:52

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?

Thanks (1)
Replying to rae10000:
avatar
By Accountant A
17th Oct 2017 14:27

rae10000 wrote:

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.

Thanks (0)
Replying to Accountant A:
avatar
By rae10000
17th Oct 2017 14:35

Great thanks.

On a similar note - bearing in mind it passes the "wholly and exclusively" test . For the individual - if there is no carry forward annual allowances, and the current annual allowance is tapered to 10,000. If the employer makes 50,000 contribution, how is the 40,000 difference recorded for the individual?

Thanks (1)
Replying to rae10000:
avatar
By John R
17th Oct 2017 15:59

Enter details in boxes 10 and 12 of page Ai4 (additional information pages) of SA return.

Thanks (0)
avatar
By ms998
17th Oct 2017 13:46

No

Thanks (1)
By Ruddles
17th Oct 2017 14:19

Why do you think that the individual should have any relief for a contribution made by his employer?

Thanks (0)
By Ruddles
17th Oct 2017 14:19

Why do you think that the individual should have any relief for a contribution made by his employer?

Thanks (0)
Replying to Ruddles:
avatar
By rae10000
17th Oct 2017 14:37

Hello Ruddles

Thank you for your reply.

However, following our previous exchange I would appreciate if you would not reply to my questions.

Thanks (2)
Replying to rae10000:
Hitch photo
By Kevin Kavanagh
17th Oct 2017 14:53

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?

Thanks (1)
Replying to Kevkava:
avatar
By rae10000
17th Oct 2017 14:56

Obviously anyone can respond.

I'd appreciate if Ruddles doesn't.

Thanks (2)
Replying to rae10000:
Red Leader
By Red Leader
17th Oct 2017 16:13

rae10000 wrote:

Obviously anyone can respond.

I'd appreciate if Ruddles doesn't.

I'd appreciate it if he did.
Thanks (2)
Replying to rae10000:
By Ruddles
17th Oct 2017 16:44

You’re going to be mightily disappointed, then

Thanks (1)
Replying to rae10000:
avatar
By Jackie0802
17th Oct 2017 16:59

Of course the mature response would have been to just ignore the question.

Thanks (2)
Replying to Jackie0802:
By Ruddles
17th Oct 2017 20:11

Jackie0802 wrote:

Of course the mature response would have been to just ignore the question.


Or perhaps to answer it.
Thanks (0)
By readmylips
17th Oct 2017 15:30

I'd appreciate if Ruddles doesn't.....

How rude !

Thanks (0)
avatar
By justsotax
17th Oct 2017 16:38

seemed a civil question....

Thanks (1)
By mrme89
17th Oct 2017 21:08

OP - get over yourself.

Thanks (1)
By JCresswellTax
18th Oct 2017 09:15

This is something new!

A poster asking for a specific member not to comment.

Are we in the school playground here?

Pathetic.

Thanks (2)
Replying to JCresswellTax:
avatar
By rae10000
20th Oct 2017 10:46

I politely asked Ruddles not to comment due to her incredibly poor attitude in a previous post.

In a world full of rain I prefer not to communicate with someone intent on breaking umbrellas!

The only reason I can presume she choose to comment on this post was to fittingly cause annoyance.

However, may I ask - do you think labelling something as ‘pathetic’ before knowing all the facts may be hypocritical?

Thanks (1)
Replying to rae10000:
By Ruddles
20th Oct 2017 11:15

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.

Thanks (0)
Replying to Ruddles:
avatar
By rae10000
20th Oct 2017 12:09

Happy with responses, just in your case not the responder!

Anyway......in a effort to avoid this conversation happening again, I will no longer reply to any of your comments.

Have a nice life.

Thanks (1)
Replying to rae10000:
By Ruddles
20th Oct 2017 12:46

Whatever. Rest assured that I will continue to reply to yours.

‘Pathetic’ doesn’t even begin to describe your attitude.

Thanks (0)
avatar
By Jackie0802
20th Oct 2017 12:44

Passive aggressive much?

Thanks (0)
avatar
By Tax Dragon
20th Oct 2017 13:24

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?

Thanks (0)
Replying to Tax Dragon:
By SteveHa
20th Oct 2017 13:53

Oooh, ooh. Me, me.

Yes.

Thanks (0)
Replying to Tax Dragon:
By Ruddles
20th Oct 2017 14:01

Yes, yes, yes and yes.

Thanks (0)
Replying to Ruddles:
avatar
By Tax Dragon
20th Oct 2017 14:24

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.

Thanks (1)
avatar
By ms998
20th Oct 2017 14:35

Why do you think that the individual should have any relief for a contribution made by his employer?

Thanks (1)
Replying to ms998:
avatar
By Tax Dragon
20th Oct 2017 14:47

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.

Thanks (0)