Additional employer contribution and tax

sebtomato

Hi,

I am already contributing to my pension via salary sacrifice.

However, my employer has decided to contribute another £2,000 this year to my pension (as I hadn't spent all my employer benefits).

They say they will just add this amount to my gross salary, and then it will be used towards the pension contribution, but this does not sound right.

Are they not supposed to add some tax relief to that amount, if it's used towards pension contributions?

I am not sure on the tax treatment for employer contributions on pensions. Is there contribution taxable?

How can I avoid paying no incoming tax on that contribution (in the same way I avoid it on the rest of my contributions (well, at least until April)?

S.

zagfles

They should just put it in without it adding to your taxable income, then you get full tax relief as you don't pay tax on it.

It's probably just they way their payroll works, they might need to add it to your gross salary then add it as extra sal sac so you don't end up getting taxed on it.

Check your payslip and make sure you aren't taxed on it.