- This topic has 2 replies, 2 voices, and was last updated 6 months ago by Tax Tutor.
- May 12, 2020 at 2:28 pm #570634AverageAndy
Good afternoon sir,
Hope you are doing well. Sir I had a doubt. In case of occupational pension scheme the amount paid by the employee will be deducted from the employee’s salary and not the gross pension contribution, right?
Also sir, when trying to establish the maximum available figure for tax relief:
We’ll take lower of :
– Total gross contributions or net contributions paid by employee?
-MAA higher of:
and 100% of relevant earnings
I know it is total gross contr paid in case of personal pension contrn, but am little confused in terms of occupational pension scheme treatment.May 13, 2020 at 3:56 pm #570721Tax TutorKeymaster
Occupational pension scheme contributions paid by employees are paid GROSS (coming out of the employee’s GROSS pay) – there is no issue of gross and net contributions, that is ONLY an issue for personal pension contributions where the individual pays a net contribution into the pension fund and it is the GROSS figure that is then used (if necessary) to extend the basic and higher rate bands and which is also credited to the pension fund of the individual concerned.May 13, 2020 at 3:59 pm #570722Tax TutorKeymaster
ps, not sure why you refer to chapter 6 regarding this issue – pension contributions are dealt with in chapter 10 in addition to chapter 2
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