Tax treatment for payemnts to private pension sschemes

Lina Registered Posts: 41 Regular contributor ⭐

One of my client's is director and the only shareholder of his company.
He signed up for private pension scheme with natwest.
Every month company ( himself basically) will pay to the pension scheme £200 on behalf of employee ( again for himself).
My question is :
£200 is an allowable business expense for corporation tax and have to be shown on CT600? or
it has to be recorded on payroll?

Thank you


  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    Depends whether it is an employer contribution or employee. If employer then yes it can be deducted against company profits. If employee, then it should be treated as payroll or directors loan item.
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