EIM15420 - Non-approved retirement benefits schemes: example: assessment of employer's contributions

Section 386 ITEPA 2003

Note: Section 386 ITEPA 2003 is repealed with effect from 6 April 2006 (see EIM15015)

Example 1

On 1 January 2004, a company pays £100,000 into a trust set up to provide retirement benefits for Mrs A, an employee. The scheme is not approved (see EIM15030).

The PAYE Regulations do not apply (see EIM15210) and the trustees receive £100,000. The payment is entered on form P11D (see EIM15200).

£100,000 is included in Mrs A's self assessment computation for 2003/04 (see EIM15038) as employment income.

Example 2

On 1 January 2004, a company pays £100,000 into a trust set up to provide retirement benefits for all its 500 employees. The scheme is not approved (see EIM15030).

Each employee includes £200 in his or her self assessment computation for 2003/04 (see EIM15038) as employment income.

See EIM15040 for background.