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).
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.
- ● Contact NOW: Pensions immediately so that we can work with you to help you resolve the issue.
- ● 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.