Pension Tax Relief Flashcards
What are relevant earnings in relation to pension contributions?
Employment Income - salary bonus commission p11d benefits that are subject to tax
Income from acting as a sole trader or partner in a partnership
Income from patent rights that are treated as earned income
General earnings from an overseas crown employment subject to UK tax
How does relief at source work?
The employee pays their pension contribution net of basic rate tax and the contribution is paid from net pay - ie after tax & NICs have been deducted.
Member of PPP,GPP, SIPP, Stakeholder or NEST
Provider claims tax relief to gross up contribution
How does Net Pay method work?
The gross pension contribution is deducted from the employers gross pay.
Available to members of occupational scheme only
