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Will I receive tax relief on my pension contributions?

Yes! If you're a UK taxpayer, you'll get income tax relief on your pension contributions. This means the government helps you save for retirement by not taxing your pension contributions.

How tax relief works at Nasa

We use something called a "Net Pay Arrangement". Here's how it works:

  • Your pension contributions are deducted from your gross pay (before income tax)
  • You only pay income tax on what's left after the pension deduction
  • You get tax relief immediately - no waiting, no forms to fill in


Important Limits and Rules Annual Allowance

  • You can get tax relief on contributions up to £60,000 per year. You can find out more about Annual Allowance here
  • For very high earners (over £260,000), this allowance may be reduced. You can read more about this here.
  • This includes contributions from you, Nasa, and any other pensions you have


Who Gets Tax Relief?

  • UK taxpayers - you need to pay UK income tax to benefit
  • Up to 100% of your taxable income - you can't get relief on more than you earn
  • Under age 75 - no tax relief on contributions after your 75th birthday

What About National Insurance?

  • You still pay National Insurance on your full gross pay before pension deductions
  • Tax relief only applies to income tax, not National Insurance
  • This is normal and applies to all workplace pensions

Tax relief makes pension saving one of the most tax-efficient things you can do with your money. Combined with Nasa's contributions, it means you're getting far more value than the amount that comes out of your pay.