PSI4.1.10 – General: Employer's Contribution Paid by Employee

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Where an employee remains a member of a scheme whilst temporarily absent from employment it is occasionally a condition that he or she pays both the employee's and the employer's contributions. If the scheme rules require the employee to pay a sum equivalent to the employer's contributions, the payment should be treated as the employee's contribution and relief allowed as in PSI4.1.8-9. But if the employer requires this, then it is an arrangement between the employer and the employee, and not an employee's contribution under the scheme rules.

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