PSI5.1.35 - Contributions by Employers: General - Contributions by Employers Assessed under Schedule E

(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)

Section 592(4) ICTA 88 does not apply to contributions paid by an employer who is taxed under Schedule E, for example where a scheme has been set up for a domestic employee (see PSI3.1.21-22). It is for the Inspector of Taxes to decide whether the contributions are an allowable expense. Insurance & Specialist Division S6 (Schedule E and Personal Tax) has advised that pension scheme contributions do no satisfy the stringent requirements of section 198 ICTA 1988. Any enquiries should be referred to the Tax District concerned. If the enquiry has come from the Inspector, ask him/her to refer to Personal Tax Division (Technical).