Help Centre for Advisers

Net pay top up – how it works

There are two ways pension schemes can collect the tax relief that savers benefit from when contributing to a pension: net pay and relief at source. You can find out more about the difference between net pay and relief at source here.

In relief at source schemes, all savers receive tax relief even if they don’t pay income tax but in net pay schemes there is no way for non-taxpayers to claim this relief.

Top-up for members’ pension funds

Although the government is taking steps to address this situation, NOW: Pensions is keen to ensure that non-taxpayers don’t miss out. So, if you haven’t paid any tax on any of your UK earnings, we’ve committed to top up your pension pot by the amount of tax relief you’ve missed out on for the 2019/20 tax year.

To enable us to do this, you need to fill in a claim form, as well as give permission to the Inland Revenue (HMRC) to communicate your tax situation to us.

The window to claim our tax top-up for the 2018/19 tax year is now closed.

Check back here for more details when the scheme re-opens later this year.

 

NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions.
Martin Woods, SALT.agency