Pension contributions

Hello,

I was just perusng some examples and am confused by the application of pension contributions when calculating the income tax liability.

In one case (a sole trader), the amount of the gross contribution into her personal pesnion scheme was used only to adjust the basic and additional rate band (so no deductions from income of any kind).

In another case, that of an employed individual, the amount that she has contributed into her employer’s registered occupational pension scheme was deducted from her salary so that it effectively reduced her employment income. Since her taxable income is below the basic rate band limit, no adjustment was made to the bands in this example, but I wonder if we are supposed to adjust the band if the taxable income is over 31,865?

I am confused by the differences between them – is it due to the fact that one is a sole trader and the other an employee, or am I missing something.?

Thank you very much.