The payment of a pension contribution is part of the normal costs of employing staff. It is allowable unless, exceptionally, there is an identifiable non-trade purpose for the employer's decision to make the contribution to a registered scheme (see BIM46030). Where the undertaking to provide a pension was given to the employees as part of their employment package, then the costs were incurred for the purpose of running the business. This is not affected by the fact that the actual payment was crystallised as a result of a direction issued by the Pensions Regulator.
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