The below outlines how tax relief is applied to your pension payment.
You may be thinking: Why are payments made into my private pension GROSS Employer and not NET Employee Contributions if deductions are taken from my salary?
All payments made by Nasa into your private pension will be GROSS Employer Contributions. This is because Nasa will have deducted the pension from the gross contract income we receive for you and will have awarded you full tax and national insurance relief on the value of the contributions at the point of making a deduction.
This means that your pension provider mustn’t claim any further tax relief from the government, as you have received tax relief at source.
It also means that you benefit in full from all available tax savings, including the saving against the employment costs. Not all umbrella companies do this, but NASA are happy to pass on the full saving.