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Thread: Tax handling on company pension contributions

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    Site Caretaker Dave A's Avatar
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    Tax handling on company pension contributions

    Where a company has been making pension contributions for an employee, are these company contributions recorded on the employee's IRP5?
    And if yes, under which code(s)?

    For clarity, my situation is the employee contributes 40% and the company contributes 60%
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    Silver Member Christel's Avatar
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    Hi there,
    I'm not 100% sure as none of my clients' employees have pension funds, but there used to be a code 4472 for the employers contribution, but that fell away in 2010 tax year. As far as I know, the only code you would use now is 4001 showing the total employee's contribution.
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    Quote Originally Posted by ChristelACS View Post
    Hi there,
    I'm not 100% sure as none of my clients' employees have pension funds, but there used to be a code 4472 for the employers contribution, but that fell away in 2010 tax year. As far as I know, the only code you would use now is 4001 showing the total employee's contribution.
    It is still 4001 and 4472

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    Just to be absolutely sure -

    So you add the company contribution to employee's income (4001), and show the total pension contribution under 4472?
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    No Dave. Code 4001 is the deduction code for the pension.

    Code 4472, the employer contribution, will not even appear on the IRP5, so practically speaking your only concern is the 4001 deduction.
    The only other concern is Code 3697, retirement funding income, must be the amount on which 4001 was calculated.

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