Help Centre for Employers

What do I do if I have calculated the incorrect tax relief on employee pension contributions?

There are two ways pension providers normally calculate tax relief on pension contributions – net pay and relief at source.

The net pay arrangement which NOW: Pensions operates means that employers do not need to deduct any tax from their employees’ pension contributions as it is deducted from gross pay (before tax is calculated).

Please check that where your payroll software offers the choice of net pay and relief at source, that you have selected the net pay option as this is the only way that NOW: Pensions operates.
If you are currently, or have in the past, paid contributions across to NOW: Pensions on the wrong tax relief basis i.e. relief at source, you will have underpaid us for contributions and overpaid tax to HMRC and you will need to rectify this immediately.

• The underpayment of contributions should be aggregated as a single payment on the file you import to us in the AVC column.
• Overpayments of PAYE tax must be resolved directly with HMRC.
• As pension payments will have been underpaid, we recommend that you advise The Pensions Regulator of this error and confirm to them the steps that you will be taking to rectify it.

ATP comes to the UK pensions world with the highest commendations from the Danish trade unions, employers and government. NOW: Pensions' offering in the UK will be high quality, low cost, and honest and I'm proud to be associated with it. — John Monks, member of House of Lords and former General Secretary of ETUC and TUC
I'm excited by the opportunity to help bring to the UK auto-enrolment market NOW: Pensions, a customer-friendly and responsive trust-based alternative to NEST and to contract-based offerings. — Chris Daykin, the former Government Actuary
There is a need for a member-centric solution designed for ease of use with low costs and cutting edge investment strategy, which delivers long term stable returns. ATP's in-house investment capabilities, combined with our novel and innovative… — Lars Rohde, Governor of the National Bank of Denmark and Former CEO of ATP Group
NOW: Pensions' risk management and diversified growth fund are state of the art. — Win Robbins, former Head of European Fixed Income Barclays Global Investors
Over a short period of time, NOW: Pensions has established itself as a respected and credible player in the UK workplace pensions market attracting thousands of employers and hundreds of thousands of members. Joining the team at such a crucial time… — Jocelyn Blackwell, Founder of Dunnett Shaw and Raising Standards in Pensions Administration