Help Centre for Payroll bureaux

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).

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.
Our broker recommended NOW: Pensions, as they believed it would be our best option. We have not been disappointed, the NOW: Pensions customer support teams are great and always available. — Bromborough Paint & Building Supplies Ltd
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
NOW: Pensions was attractive to us because the staff were very helpful and they sent over all the information required. This made the decision easy. — Metro Surveillance Group Ltd