SE01570 - Emoluments of employees and office holders: personal pension schemes

Sections 643 and 648 ICTA 1988

Approved schemes

Approved personal pension arrangements made by an employee (or director) may provide for employer contributions as well as employee contributions. Where, under such arrangements, the employer pays employer’s contributions the contributions are not chargeable on the employee as emoluments of the employment (Section 643 ICTA 1988).

If you find that the employer has paid contributions that the employee (or director) was supposed to make, without recovering the full amount from the employee, send a brief report to Savings and Pension Schemes (SPS) Advice and Services, St John’s House, Bootle. The report should include the following details

the name of the employee concerned

the name and address of the employer

the name of the pension provider

the pension plan reference number.

Unapproved schemes

If the employer contributes to personal pension arrangements made by the employee which are not approved arrangements, the amount of the employer's contribution is chargeable on the employee as an emolument of his employment (Section 648 ICTA 1988).

As regards payments received by an employee out of a personal pension scheme, see SE02900.