Contributions

What’s ‘relief at source’?

 For more information about the relief at source method, please visit our pension tax webpage.

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How are qualifying earnings calculated for contributions made via salary sacrifice?

If your employer is using a defined contribution scheme (which The People’s Pension is), then the qualifying earnings used to …

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Do childcare vouchers count as qualifying earnings and therefore do we have to pay pension contributions based on the value of these?

Childcare vouchers are usually given to employees via a salary sacrifice arrangement where an employee gives up the right to …

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If I’m made redundant do I have pay pension contributions based on my redundancy pay?

The tax-free redundancy payment (up to £30,000), ie the lump sum you’d get for being made redundant, isn’t counted as …

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Do my contributions include overtime pay?

Some employers will calculate your pension contributions based on your basic salary whereas other employers will base contributions on your …

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What’s a ‘net pay arrangement’?

For more information about the net pay arrangement, please visit our pension tax webpage.

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How do I claim higher rate tax relief on my contributions?

If your pension contributions have been deducted from net pay (after tax has been deducted) and you’re a higher rate …

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Why can’t I see any tax relief on my Online Account?

There are two reasons you might not be able to see tax relief on your Online Account. Your pension contribution …

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If I increase my contributions does the employer have to match them?

No – as long as the employer is making the minimum contribution.

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If I set up a Direct Debit to increase my contributions, will my employer automatically match this contribution as well?

Your employer will not automatically match your increased contributions. Currently your employer has to contribute 3% of your qualifying earnings.

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