29.06.22 Scheme Advisory Board - Prepayment of contributions by employer

Prepayment of Contributions by an Employer

The Scheme Advisory Board (SAB) has sought an opinion on the legal position regarding prepayment of contributions by employers, which has concluded that it is lawful to prepay contributions (both primary and secondary). The advantage to you, as an employer, is that prepaid contributions benefit from a discount due to the reduction in interest rates that would otherwise apply.

Employers should, in the case of employee contributions, notify us of the payment being chosen to be made.

You can read more about this decision here.