Please note: The Auto-enrolment sub-board is now closed. If you have a question around pensions, please post in the Pensions, Annuities and Retirement Planning board.
Quick pension question
classy69
Posts: 75 Forumite
Hi,
With regards to the auto enrolment pension scheme, from October 2018 the employer contribution must be 3%, and the overall contribution must be 8%. My question is, if I ask my employer to cover the whole 8% contribution, does this count towards my taxable income as well?
With regards to the auto enrolment pension scheme, from October 2018 the employer contribution must be 3%, and the overall contribution must be 8%. My question is, if I ask my employer to cover the whole 8% contribution, does this count towards my taxable income as well?
0
Comments
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Your employer can pay the whole 8% if they are happy to and this would satisfy auto-enrolment requirements.Hi,
With regards to the auto enrolment pension scheme, from October 2018 the employer contribution must be 3%, and the overall contribution must be 8%. My question is, if I ask my employer to cover the whole 8% contribution
What do you mean exactly? Pension payments aren't taxable.does this count towards my taxable income as well?Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.
Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.0 -
Sorry, what I meant was if my employer pays the 8% contribution in full, would it be added to my salary, and then deducted again, therefore increasing taxable income, or would my gross salary remain unaffected as the employer contributions are completely separate?0
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Employer contributions are of course separate. Whether or not your employer will pay the full 8% is questionable. Probably depends on what they are currently paying into your pension right now. If they have no pension currently, then for them to pay the full 8% is a big jump and is a little ambitious. Most SMEs will simply stick to the minimum required by law.Sorry, what I meant was if my employer pays the 8% contribution in full, would it be added to my salary, and then deducted again, therefore increasing taxable income, or would my gross salary remain unaffected as the employer contributions are completely separate?Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.
Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.0
This discussion has been closed.
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