Employer contributions

This topic has 3 replies, 2 voices, and was last updated 9 years ago by Tax Tutor.

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June 6, 2017 at 5:01 am #390752
teriki13
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Are employer contributions to an employee’s occupational pension scheme a deductible trading expense for tax purposes?

As far as I know, employer class 1 NIC and class 1A NIC are deductible as trading expense for the employer.
June 7, 2017 at 2:41 am #391113
Tax Tutor
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Yes they are deductible but on a paid basis not an accruals basis
June 7, 2017 at 5:02 pm #391399
teriki13
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All of the abover are deductible on an accruals basis? Should we calculate the amount of class 1 and 1A NIC for the portion of the tax year the employee is employed by a specific employer, or should we calculate them as the period of account as the basis?

Employer contributions to occ. pension schemes are deducted on a paid basis.
June 8, 2017 at 2:22 am #391661
Tax Tutor
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Class 1 and Class 1A NIC’s are computed by each employer on a tax year basis.
Employer contributions to pension schemes are as stated previously deducted on a paid basis in the employers accounting period
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