pensions

i should know this

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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?

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By The Grammar Police
25th Aug 2016 17:04

Yes you are.

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By jimmyxyz
25th Aug 2016 21:00

Yes, you are.

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JCACE
By jcace
25th Aug 2016 22:44

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.

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RLI
By lionofludesch
26th Aug 2016 07:44

Not enough information here to give a definitive answer.

As jcace says, it depends.

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