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, to find more about the difference between net pay and relief at source click 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. The government is considering how to address this inequality, but in the meantime, NOW: Pensions has committed to ensuring those who do not pay income tax are treated fairly. For scheme members in respect of the 2019/20 tax year, NOW: Pensions is offering to top up members’ pension funds by the amount they would have missed out on.

Members who have paid into the NOW: Pensions scheme in the 2019/20 tax year and have total earned income for the year of less than £11,850 per annum, may be eligible to receive our top up. If you are an employer and have employees you think may be eligible please download this template letter and share it with them.

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,