In the last week I have come accross 2 situations where pension contributions deducted directly from an employees net during Feb and March 2020, were shown on the pension companies statement as contributions made on 8 April 2020, 20 April 2020 and 30 April 2020. Both these clients are higher rate taxpayers and without sight of the pension statement, I would have treated them as contributions on their 2019/20 tax returns. I am now thinking I have to go with the pension statement and therefore these will be 2020/21 contributions. Have readers encountered this problem before and what is the right answer? It seems unfair that a contribution made in Feb 2020 as far as the employee is concerned, is not treated as a 2019/20 contribution as they may not be higher rate in 2020/21. It is frustrating when contributions are not dealt with via the PAYE system.
18th May 2020
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Pension contributions via monthly payslips
Pension contributions via payslips