we have a client who is contributing to a company pension scheme through PAYE
she also has a sole trader business and her company accountant has suggested that she can claim tax releif on the company pension contributions through her tax return
this seems a little too good to be true, our understanding was that as tax releif is gained on the employee pension contribution at source, nothing further can be claimed
am I missing something here?
Replies (4)
Please login or register to join the discussion.
It depends on the nature of the payments made by her employer. If contributions are deducted from her pay before tax is calculated, then no additional tax relief can be claimed - her pay for tax purposes will be after deducting the contributions. If the contributions are net of tax relief at source, then additional tax relief can be claimed through her tax return if she is a higher rate taxpayer.