What is tax relief?

Getting tax relief on pensions means some of your money that would have gone to the government as tax goes into your pension instead.

You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions. 

TPT Retirement Solutions needs your employer’s payroll to deduct your contributions from your gross pay.

Gross pay is the amount your employer is paying you before any tax has been deducted and you will be able to see this on your payslip.

This means that your pay after the deduction of pension contributions will be lower and you will pay less tax (tax relief on your contributions). This is sometimes known as a Net Pay arrangement and for most members avoids the process of having to make a claim with HMRC.

Employer contributions are paid in addition to your contributions, and you will not be required to pay tax or National Insurance on your employer’s contribution.

For the majority of members this is a straightforward way to benefit from tax relief. Members who do not pay income tax will not get any benefit from tax relief under this arrangement.

There is no limit on the amount you can pay into your pension scheme. However the Annual Allowance is the maximum amount of total pension savings that you can have each year that benefit from tax relief.