How to inform HMRC about employer gross pensions?

Do you have to tell them through self assessment, basic PAYE tools, or corporation tax return, or?

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I am a director of a Ltd company that I own, with myself as the only employee. This company pays me a salary, and deducts PAYE tax + 2x NI, using the "Basic PAYE Tools" application from HMRC to inform them about each salary payment. Separately each month I instruct HMRC to take the tax + 2x NI from my company's bank account by direct debit.

However from time to time the company makes a payment to my SIPP - self invested personal pension, for which the company claims a deduction from its profits for the purpose of calculating corporation tax in the corporation tax return completed once a year.
The problem is that in none of these methods of communcation with HMRC can I see a way to tell them that a pension contribution is being made by the company to me.

Does anyone know how I should tell them about this?

Looking in "Basic PAYE tools", it says:

    "Do not deduct any pension contributions. Enter the pay in full, and then enter the pension contribution amount in the relevant field below"

Scrolling down, under section: "Employee Pension Contributions", there are two fields:

    Value of employee's pension contributions paid under 'net pay arrangement'

    Value of employee's pension contributions paid, but not under 'net pay arrangement'

But the contributions the company is making is an employer contribution, not an employee contribution.
So are either of these two fields the correct place to report them?

Secondly the explanation you get when you click on the question mark icon starts in both cases with:

    "Enter the amount of any pension contribution being deducted from this employee's pay .."

which is not applicable in my case, because no deductions are being made from the employees pay; the contributions are in addition to the pay, and paid gross.

There is nothing about pension contributions on the P60
Nothing that I can recall seeing on the corporation tax return (other than the fact of having the pension contribution as a company expense, but without telling them who's pension scheme is the recipient of the payment).

Maybe you don't have to inform HMRC? In which case how does HMRC police the two rules (maximum of £40,000 contributions per year, and max £1 million lifetime)?
Thanks

 

Replies (7)

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By Matrix
01st Nov 2018 19:22

They don't police it and you don't need to let them know the gross contributions, although if they are excessive a corporation tax deduction could be denied.

I suggest getting an accountant since paying 2 x NI on your salary sounds sub-optimal.

Thanks (1)
Replying to Matrix:
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By neil9327
01st Nov 2018 21:16

Ah thanks for that. Puts my mind at ease.

2x NI means Employers NI, and Employees NI.

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Replying to neil9327:
By Ruddles
01st Nov 2018 21:27

I hope, therefore, that the wording of your post is just loose and that you aren’t deducting E’er NI from your salary.

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Replying to Ruddles:
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By neil9327
01st Nov 2018 22:54

Yes it was a loose description - I was just providing some context behind my question - showing where I had already looked in my bid to tell HMRC about the pension payments.
A more accurate description would be to say that I am deducting 2x NI from the sum of salary + employer's NI for that month, the latter being the amount that can be expensed on the company's corporation tax return.

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Replying to neil9327:
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By Matrix
01st Nov 2018 22:19

I know, I just don't know why you would voluntarily pay it to the government when you could use some of this money to pay an accountant to structure the profit extraction tax efficiently, ensure you are compliant and save you money in the process.

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By Ruddles
01st Nov 2018 20:10

What is 2x NI? A new class of National Insurance that I haven’t heard of?

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Replying to Ruddles:
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By DJKL
01st Nov 2018 22:43

Its cheaper than XXXL

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