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Relevant earnings for pension contributions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Relevant earnings for pension contributions

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by teriki13.
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  • April 24, 2017 at 6:55 am #383299
    teriki13
    Participant
    • Topics: 26
    • Replies: 22
    • ☆

    Relevant earnings are employment income, trading income and profit from furnished holiday lettings.

    By employment income do they mean gross employment income or net employment income(after deducting allowable deductions such as employee contributions to occupational pension scheme)?

    April 26, 2017 at 5:05 pm #384014
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    It refers to your employment income assessment after deducting allowable expenses but before deducting pension contributions as you are trying to work out what the allowable pension contributions will be based on

    April 28, 2017 at 5:36 pm #384235
    teriki13
    Participant
    • Topics: 26
    • Replies: 22
    • ☆

    That part made me confused a little bit. I was thinking that since earnings for NIC purposes are different, earnings for pension contributions may be confusing as well.

    Thank you for clarifying. 🙂

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