Maximising tax efficiency of pension contributions

[miser]

Up to recently I had a job where my employer contributed 5% to my occupational pension scheme, which I didn't need to match. I stuck in the full 25% allowable for my age to claim the maximum tax relief. I've now started a new job where my new employer runs a PRSA scheme, contributing 7%. As I understand it, I can only claim tax relief on an 18% contribution (i.e. 25%-7% employer contribution) now, even if I were still putting in 25%.
Is there any way around this in order to get the additional tax relief on the 7%? eg setting up a personal pension (not a PRSA) or any other way?

Separately, what's the logic behind treating employer contributions to PRSAs but not occupational pensions as BIK? Seems unfair to me but would be interested to hear if anyone knows why.

 

[Dave Vanian]

Is there any way around this in order to get the additional tax relief on the 7%? eg setting up a personal pension (not a PRSA) or any other way?

No. The only thing I can think of is to convince your employer to operate a one-person Occupational Pension Scheme for you.

Separately, what's the logic behind treating employer contributions to PRSAs but not occupational pensions as BIK? Seems unfair to me but would be interested to hear if anyone knows why.

My cynical old self would suggest that it's because Public Service pensions are Occupational Pension Schemes and it might raise awkward questions if, for example ministers or high-ranking Revenue officials were to be hit for BIK on the notional value of the State's contribution to their pensions. (While there is no actual employer contributions to Public Service pensions, the State does heavily subsidise all Public Service pensions and this has a quantifiable value.) I'm only speculating on this point, by the way.