Pensions

[newtonia]

Just wondering if anyone know what the taxes payable are on employer contributions to (HMRC approved) employee pensions.

The employees are not required to contribute themselves, so I would have thought this was a pure benefit and thus subject to PAYE/NI, but I cannot seem to find this written, or disputed, anywhere official. Or maybe I'm wrong about it being subject to tax?

Any answers or advice would be great, thanks =)

 

[MikeJ]

Speak to an IFA, but I don't think so. There are limits, but in general the payments are tax and NIC free.

 

[newtonia]

Thanks Mike, I'll post this over in the accounts section too and see if I get lucky there. If not will try to track down an IFA.

N

 

[jim_price]

Provided we are talking about modest pension contributions here, there is no impact on the employee at all (other than an increase in their pension fund of course). The company should be able to obtain a corporation tax deduction for the contributions it makes.