Understanding employer pension contributions

For financial advisers only

On completion of this module you should be able to:

  1. describe what limits may apply to employer pension contribution
  2. explain the circumstances when employer contributions may not be a valid deduction for corporation tax
  3. determine when tax relief has to be spread over more than one year

Introduction

Employer pension provision is a valuable benefit for employees and also an extremely tax efficient way for business owners to extract profits from their business. Understanding when the business will benefit from tax relief on employee contributions and how it is provided is essential for advisers who have business owning clients.

This module should take around 30 minutes to complete. It includes a short self-assessment quiz to test what you’ve learned and a 30 minutes CII/PFS accredited CPD certificate can be claimed.

This module looks at how much employers can contribute to their employees’ pensions and what factors may limit the availability of corporation tax relief. It outlines when relief may need to be spread over more than one year.

Please read our Technical guide – Employer Pension Contributions before attempting the self-assessment questions.