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Where Taxpayers and Advisers Meet

Help with Employer Payroll Error

OhDear
Posts:2
Joined:Wed Jan 25, 2017 3:11 pm
Help with Employer Payroll Error

Postby OhDear » Wed Jan 25, 2017 3:17 pm

My employer is taking pension contributions out of my salary after NI but before PAYE Tax, as per 'Net pay arrangement'. However, the Group Personal Pension scheme is claiming relief from HMRC as per 'relief at source' procedures.
Thus, members are effectively getting double tax relief.
I believe that to be an error in the way the employer is operating his payroll. Is there any way that I might be wrong and the employer might be correct?
If I'm correct, and the employer has been making such an error, how can I persuade him to put it right, bearing in mind that this will have massive repercussions for him and all members of the scheme?

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Help with Employer Payroll Error

Postby AmanSood » Sun Jan 29, 2017 8:51 pm

Hi Ohdear, the only possible explanations I can think of is that the amount of the pension contributions per you payslip are reduced by 20% so no actual tax is being deducted at source. Otherwise like you say it's likely to be a big issue particularly for individuals who are not 40% higher rate taxpayers.

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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