SSAS Pension contributions: filling in SA form for tax relief?

topbuzz

Hello, I need some help on filling in my self-assessment tax form regarding pension tax relief.

Some background:
I'm in full time employment and I'm a 40% tax payer. My employer has a work place pension that I pay into and get 20% tax relief automatically. I fill in a SA form each year to claim back the additional 20% tax relief (form SA100 box 1).

I'm also a Director of my own Ltd co which is also a sponsor for my SSAS Pension.
I wanted to reduce the Corp Tax lability within my Ltd co by making a 'employer' pension contribution directly into my SSAS pension - this is a tax deductible expense.

But my SSAS pension administrator says they don't do the 20% tax relief automatically for me - I have to do this myself via SA.

So the question is, which box in the SA form do I fill in?

For my regular job, I've filled in Box 1.
But for this SSAS pension contribution which box do I fill in? It sounds like it needs to be Box3?
Thanks.

Phoenix72

Can you clarify that you actually mean employee and not employer? 

topbuzz

Phoenix72 said:

Can you clarify that you actually mean employee and not employer? 

Sorry, it should be "employer". I have corrected the mistake in the OP.

Phoenix72

topbuzz said:

Phoenix72 said:

Can you clarify that you actually mean employee and not employer? 

Sorry, it should be "employer". I have corrected the mistake in the OP.

Then there is nothing further you can claim on an employer contribution.

topbuzz

Then there is nothing further you can claim on an employer contribution.

Really? So even though I'm the Director of my Ltd co, and it paid a contribution on my behalf, I can't claim any tax relief on it?

Otherwise what other method should I have used to be able to claim tax relief? Should it be done my Payroll? I could set it up but I didn't want the hassle of doing income tax, NIC's and all the monthly payroll FPS submissions. I just wanted to do a one-off, end of year contribution.

Phoenix72

Why would you as an individual who never received that amount as income (or did you) get tax relief on it? 

Ignore the fact you are a Director. No individual can claim tax relief on Employer contributions. 

topbuzz

Ignore the fact you are a Director. No individual can claim tax relief on Employer contributions. 

I was thinking more from the SSAS pension point of view, i.e. I'm both a Member and Trustee of this pension. Money has been deposited into the SSAS and thus I should get tax relief as I'm a 40% tax payer?

I was doing a search and found someone asking the same sort of question, re: claim tax relief from a employer contribution.
https://forums.moneysavingexpert.com/discussion/comment/76938682#Comment_76938682

...it had some links there, and one of them was PensionBee.
https://www.pensionbee.com/pensions-explained/self-employed/contributing-to-your-pension-from-your-limited-company
...were it says:-


and through Drewberry Insurance
https://www.drewberryinsurance.co.uk/pensions-advice/company-directors-pension-contributions

As a director, you can make contributions to the pot both as an individual and via your limited company. Fortunately, it’s possible to claim pension tax relief not only on your contributions as an individual but also on contributions made through your business.

.

Phoenix72

topbuzz said:

Ignore the fact you are a Director. No individual can claim tax relief on Employer contributions. 

I was thinking more from the SSAS pension point of view, i.e. I'm both a Member and Trustee of this pension. Money has been deposited into the SSAS and thus I should get tax relief as I'm a 40% tax payer?

I was doing a search and found someone asking the same sort of question, re: claim tax relief from a employer contribution.
https://forums.moneysavingexpert.com/discussion/comment/76938682#Comment_76938682

...it had some links there, and one of them was PensionBee.
https://www.pensionbee.com/pensions-explained/self-employed/contributing-to-your-pension-from-your-limited-company
...were it says:-

But you haven't paid any tax on that income, you haven't even received it so how can you get tax relief on it. Nothing in those links supports your view that an individual can claim tax relief on an employer contribution. 

As a lot of directors of owner managed business' do, you cannot seem to seperate tbe company and the individual.

If the company isn't paying you a salary then you may want to look at the pension bee article more closely especially the "wholly and exclusively" in relation to the pension deduction in the company accounts.

topbuzz

But you haven't paid any tax on that income, you haven't even received it so how can you get tax relief on it. Nothing in those links supports your view that an individual can claim tax relief on an employer contribution. 

So the only way to claim tax relief on a pension contribution is to:

1. Pay the pension contribution through my Ltd co under Payroll? But this means I would have to pay 40% income tax and NICs on any salary I give myself - this may actually work out more expensive, ie not worth it. Plus the hassle of running PAYE each month too.
2. Or I make a pension contribution into my SSAS in my own name using my own personal saved funds (as I've already paid tax on these savings)?

Phoenix72

topbuzz said:

But you haven't paid any tax on that income, you haven't even received it so how can you get tax relief on it. Nothing in those links supports your view that an individual can claim tax relief on an employer contribution. 

So the only way to claim tax relief on a pension contribution is to:

1. Pay the pension contribution through my Ltd co under Payroll? But this means I would have to pay 40% income tax and NICs on any salary I give myself - this may actually work out more expensive, ie not worth it. Plus the hassle of running PAYE each month too.
2. Or I make a pension contribution into my SSAS in my own name using my own personal saved funds (as I've already paid tax on these savings)?

Exactly, you need to weigh up the options but you absolutely can't claim any relief on employer contributions.