Pinpoint the time

KEY POINTS

• Paying pension contributions by cheque.
• Importance of the ‘date paid’.
• The answer might be in the Registered Pension Schemes Manual.
• The employer must keep clear records.

An interesting discussion on the date of payment of an employer’s pension contribution for the purposes of claiming tax relief on the contribution took place in Readers Forum query Making payment.

The case in question involved a cheque and this can be a particularly important issue if the contribution is being paid by a cheque drawn quite close to the end of the accounting period of the business.

It was acknowledged by both published answers that the contribution is relievable on the date the contribution is paid (see HMRC’s Business Income Manual at BIM 46010). This meant that it was important to establish the date of payment of the...