Employer Pension Contributions - Tax Relief
If your company runs a HMRC registered occupational pension scheme you may be eligible for tax relief on employer pension contributions, how much will depend on the size of your contributions and other contributing factors. Tax relief for employers may be offset against corporation tax if the employer is a corporation, or income tax if the employer is unincorporated.
Tax relief on employer pension contributions is subject to the pension scheme being HMRC registered. To get tax relief on pension contributions they will need to be deducted as an expense when calculating company profits. Employees may also entitled to tax relief on pension contributions subject to certain regulations. Tax relief on employer contributions to a pension fund is not automatic.
Although there is no upper limit on employer pension contributions, the full amount paid may not necessarily be eligible for tax relief. The amount of tax relief given is left to the discretion of the employer's local inspector of taxes who must be satisfied that the contribution is made wholly and exclusively for the purpose of the employer's trade.
For further advice concerning tax relief on employer pension contributions contact an independent company pension advisor for a free consultation and impartial advice.
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