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Obligation to Report Employer Pension Contribution

Does an employer have an obligation to report employer pension contributions to HMRC?

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We are bringing the payroll in house for the first time in twenty years and are currently setting the software up for the first monthly run. Through auto-enrolment we pay both employee and employer pension contributions. As employee contributions are listed on the payslip I assume they are being reported to HMRC through the monthly RTI submission?

Is there also an obligation to report employer pension contributions? If yes, how is this done?

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By David Ex
10th May 2021 15:54

James D S wrote:

Is there also an obligation to report employer pension contributions? If yes, how is this done?

Not as far as I am aware. Don’t think it’s information that HMRC would have any use for.

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By Wanderer
10th May 2021 15:56
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By Paul Crowley
10th May 2021 16:13

The software will get it right if used correctly.
I have assumed you bought software, not HMRC freeware.

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Replying to Paul Crowley:
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By James D S
10th May 2021 16:34

Thank you. We are going to use Xero. I take your point and I recall seeing an option to record employer's pension contributions on the payslip. I was just wondering whether there was a legal/tax obligation to pass this on to HMRC. Previously, we had told the payroll company about changes to employee contributions, but never about employer contributions. Bringing the payroll in house made me think about this issue since RTI would seem a logical means to help HMRC to track the annual allowance for individual employees. Perhaps the pension companies already provide this to HMRC already? So far there does not seem to be any legal obligation......

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Replying to James D S:
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By David Ex
10th May 2021 16:48

James D S wrote:

... RTI would seem a logical means to help HMRC to track the annual allowance for individual employees. Perhaps the pension companies already provide this to HMRC already?

In a Defined Benefit environment the valuation of annual allowance usage is more complicated than just looking at employer contributions. I doubt it could realistically be done on a monthly basis.

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Replying to David Ex:
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By James D S
10th May 2021 16:56

Thanks David, we have a defined contribution scheme so I did not think from a defined benefit point of view. This nows makes sense why I could not find any obligation to report the employer contributions. So pleased we have not being doing it wrong for the last twenty years!

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Replying to James D S:
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By Paul Crowley
10th May 2021 17:12

Good idea to see if the software replicates the April figures
Look at your payslips and prior payslips
BUT DO NOT FILE

After test may need to delete the entries, after keeping PDF versions.

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Replying to Paul Crowley:
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By James D S
10th May 2021 17:24

Thanks Paul. So far so good, all the figures match. It helps that this is month 2 and there have been no changes.

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By Hugo Fair
10th May 2021 18:08

I would hope you could rely on your Payroll software to ensure all appropriate values are sent within the FPS ... but I can confirm that there is no 'data item' in the FPS or in the EPS for reporting ER pension contributions.
However, for clarity, I would expect this value to be calculated by your payroll ... and shown (as 'this period' and YTD values) on payslips ... and included within whatever report or payment file is produced in preparation for paying the Pension scheme.

FWIW the TPR gets various reports from pension schemes (and some extracts from RTI), which help them identify things like missing/late payment of contributions.

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Replying to Hugo Fair:
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By James D S
11th May 2021 08:35

Thank you.

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By bernard michael
11th May 2021 09:18

In Moneysoft the FPS shows both EE & ER pension contributions in total but not by employee

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Replying to bernard michael:
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By Hugo Fair
11th May 2021 09:46

Although I've never seen, let alone used, Moneysoft ... you must be wrong.
Because the FPS (content, structure and validation) is defined as a single spec by HMRC ... and, as I said above, contains no data items for ER pension contributions (or indeed combined EE & ER contributions).
Any FPS that deviates from that spec would be rejected at the point of submission.
[It's of course likely that your payroll produces loads of not-for-submission reports, some of which may well contain the values you mention - if only to assist with payroll reconciliation].

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Replying to Hugo Fair:
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By bernard michael
11th May 2021 09:59

Hugo Fair wrote:

Although I've never seen, let alone used, Moneysoft ... you must be wrong.
Because the FPS (content, structure and validation) is defined as a single spec by HMRC ... and, as I said above, contains no data items for ER pension contributions (or indeed combined EE & ER contributions).
Any FPS that deviates from that spec would be rejected at the point of submission.
[It's of course likely that your payroll produces loads of not-for-submission reports, some of which may well contain the values you mention - if only to assist with payroll reconciliation].


Every Moneysoft FPS shows the pension totals. Whether these are eliminated on submission to HMRC I cannot say. Does anyone know??
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Replying to bernard michael:
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By psimonparsons
13th May 2021 11:24

Then it’s not an FPS but something different badged as such. It’s not a value on the actual HMRC RTI FPS. The FPS is a legal filing structure and carry’s no field for reporting employer contributions, nor salary sacrifice based contributions.

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Replying to bernard michael:
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By Wanderer
13th May 2021 11:45

bernard michael wrote:
Every Moneysoft FPS shows the pension totals. Whether these are eliminated on submission to HMRC I cannot say. Does anyone know??
Look at the raw data for the FPS. (You might be surprised at the quantity of information transmitted with every FPS.)
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By psimonparsons
13th May 2021 11:35

Simply - no. There is no PAYE reporting field made available by HMRC for employer contributions.

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