HMRC clarifies BIM guidance for directors

Following A-Day HMRC stated any employer pension contribution would only receive corporation tax relief if it is ‘wholly and exclusively’ for the purposes of the business, which at the time caused some confusion among both the industry and local inspectors of taxes. However, in February HMRC published additional guidance on this issue which confirmed the ‘wholly and exclusively’ test would only apply in limited circumstances as the payment of a pension contribution is part of the normal costs of employing staff. Now the Revenue has responded to calls for more clarification on how the new...