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Dear tutor,
I have a question regarding one exercise. How can we know that if a pension contribution is a gross number or not?
The sentence in the exercise goes like this:
“Jacob will contribute a total of £12,000 into Initial plc’s occupational pension scheme.”Thank you in advance!
Occupational pensions paid by the employee are paid gross and are a deduction against employment income.
Personal pensions are paid net of 20% income tax and so must be grossed up at 100/80 and are treated the same as gift aid donations.
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