Pension Contributions

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
As far as personal tax is concerned.......

Individual cont. into approved scheme = extended basic rate, correct?

How about employers conts?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    Employer pension contributions are normally a tax allowable expense in the P&L.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    So it wouldnt be taxed as part of the employees income?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    No not at all - the employees part of the contribution usually gets deducted from their salary/wages - the employers part is a tax deductible expense - a bit like employees NIC and employers NIC.

    Regards
    Ste
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    Did my answers help? Feedback is very much appreciated.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    yes thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    Great stuff. It's just that I ha to read a bit on pensions (something to do with a client) and there are other issues which could have related to your question, but they are more to do with tax planning which I can't even follow!!

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    P & L account no longer exists, it's now the Income Statement. Has your tutor not explained the new IAS - International Accounting Standards to you which have taken over FRS?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    Yes but we werent reporting financial statements, he was just explaining something to me 'internally'

    So it is therefore allowable. So no need for the smart comments lol :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    No Ian P Allman my tutor has not explained to me because I am not a student. Under FRS/SSAP the P&L is still regarded as the same.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    I apologies for offending you, but I thought this was a forum for AAT Technician Students to contact each other.
    A smart comment it wasn't, just one student concerned for another, or in this case, not a student.
    Please accept my apologies once again. :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    No need for apologies, I thought the smily face would have hinted that I was messing around :lol::lol::lol::lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    Definitely no need for any apologies. I didn't think you were being offensive in the slightest.

    Kind regards
    Ste
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pension Contributions

    Did you get the answer you were looking for edventually?

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