Pension contributions from pay
Employee and employer both pay into a workplace pension. Work out each share and see how a pension can reduce income tax.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1Two contributions4 questions
A workplace pension is a savings pot for retirement. The employee pays in a percentage of pay, and the employer adds its own contribution on top.
Most employees are put into the scheme automatically, and can choose to leave it.
At Kestrel Row Cycles the employee pays 5% of gross pay and the shop pays 3% of gross pay. The legal minimums change, so these rates are for practice only.
Task 2Pension before tax4 questions
Task 3What the pension does not change2 questions