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Company Pension Contributions and the Budget on 30.10.2024

23 - 10 - 2024

Consider making your employer pension contributions prior to the Budget announcement on 30 October 2024.

The UK Government are in the process of preparing a tax budget to be announced on Wednesday 30 October 2024. The budget is anticipated to introduce some significant changes to the UK tax system.

One of the new measures that could be put in place could be the introduction of Employer’s National Insurance Contributions to be charged on company pension contributions to employees.

If the above rumour proves to be correct then based on the current employer’s National Insurance Rates at 13.8%, employers could be liable for an additional tax charge on any contribution made after the implementation date. For example, a £10,000 pension contribution could incur a £1,380 Employer’s National Insurance Contribution. The National Insurance Contribution would be tax allowable for Corporation Tax purposes.

The Government may introduce this additional tax at any time from 30 October 2024 or alternatively it may not be introduced at all.

On the basis that the additional National Insurance charge may be announced if you are considering making a significant pension contribution from your company in the foreseeable future you may wish to consider whether it would be advisable to make that contribution before 30 October 2024.

Please be aware that we will not be able to confirm the actual actions taken by the UK Government until after the announcements on 30 October 2024. The above is based on the current conjecture in the financial press.

Please do not hesitate to contact Foremans if you wish to discuss any of the above. Our friendly team are happy to help on 01244 625 500 or contactus@foremansllp,com.