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  • RE: Private pensions and paying into them via Ltd company

    Tooby states that the "scheme was set up by me (as the director) as a private pension". One thing HMRC Admin team haven't raised is whether the pension is correctly being paid as a company contribution to the scheme. To get the tax relief correct in both the company and for the individual, the company has to make gross EMPLOYER contributions to the scheme. If Tooby or silvnic are making payments from their company into their personal schemes which have not been correctly identified as employer gross contributions, the contribution will be treated as a net personal contribution and tax relief will be added by the pension scheme. This will mean that that tax relief is being given twice, once to company and again to director. Employee/director net pension contributions should be deducted from net pay of the director rather than as an expense payment of the company. I see lots of errors of this type.