Hi,
I would appreciate some help figuring out if the tax on this is correct:
Last October I started a pension before the deadline for return of 2004 Form 12s with Quinn Life. I work as a contractor with my own limited company so started an executive pension. I contributed 10k from my own funds so thought I would be able to claim back 42% from tax paid. However QL said as it's an executive pension at least 1/7th of the contribution must come from my company so I designated it as 1666 from the company and 8334 from my own funds. The 1666 I then reimbursed from the company to myself.
Revenue are telling me that 1666 should be taxed as benefit in kind. Is this correct, i.e. if a company contributes to a pension you are taxed on this? This will reduce my tax back to 42% of 8334. This doesn't square with my understanding that the company can make contributions to the pension on my behalf tax-free.
Thanks