If an employer makes a contribution to a pension scheme for an employee, does the employee gain a tax benefit? (by extending their basic rate bands)
Also, do employers (occupational pension schemes) gain a tax benefit from this as well?
Ask the Tutor ACCA TX-UK
Employer pension contributions
Hi Diane
If an employer makes a contribution into an employee's personal pension scheme or an occupational scheme there is no assessable benefit on the employee nor any extension of the basic rate band.
Contributions made by employers into the pension schemes are then an allowable deduction for corporation tax purposes on a paid basis
Thank you very much!
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