Will I receive tax relief on my pension contributions?

Tax relief values can vary, depending on what level of tax payer you are.

If you are a UK taxpayer, you’ll get income tax relief on your employee contributions up to 100% of your taxable income, provided your contributions and any other pension saving schemes do not exceed the maximum allowed (known as the annual allowance). This is normally £40,000 a year, except for very high earners and people who have started to take some money out of their pensions.

You won’t get any tax relief on any contributions you make to your pension account after your 75th birthday.

NOW Pensions operate a “Net Pay Arrangement”. This means that contributions are taken from your gross pay before income tax has been calculated. This means that you only get taxed on what’s remaining, so you are able to get tax relief straight away.

Please note that you will pay national insurance contributions on your income prior to pension deduction.