Is it late?

lisyloo

My employer contribution shows at hl as 24/4.
Is this late?
I can read the regulations but it says !!!8220;paid!!!8221; not received, so I!!!8217;m a little unsure.

Can anyone confirm if it!!!8217;s late or not?

AnotherJoe

What does this mean?

My employer contribution shows at hl as 24/2.

Then you ask "is it late"? Well, what date do you expect this event to happen by, and what regulations are you referring to ?

It's all a bit cryptic.

lisyloo

Hl is Hargreaves lansdiwn who are a well known company that many regular posters will be familiar with. The contribution shows up in my online account on 24/4 (units are usually bought the next day and the settled a few days later).

The pension regulator says its uk law that contribution are paid no later than the 22nd of the month.

The 22nd was a Sunday in April but no later than is very clear to me.
What is not clear to me is whether I should allow a lag between paid and received in this day and age and in fact what paid means - for example in the context of salary one wouldnt consider oneself paid; until it was received.

I wanted to be sure before challenging my employer and thought someone with payroll, Hargreaves lansdown or experience of the regulations might be able to confirm.

I think its late and I think its possibly due to a takeover by a US company not being familiar with the regulations.
However I want to get my facts straight first specifically whether paid means leaving the employers account or being received or indeed whether we!!!8217;d expect them to be faster Payments in this day and age and not have a gap.
At

Thanks

Brynsam

When were the 'offending' contributions deducted - March or April salary?

Contributions deducted from your salary should be paid to the pension provider by the 19th of the following month from which they were collected from pay or the 22nd of the following month if contributions are paid electronically to the pension provider.

lisyloo

It was deducted from March salary.
In previous months they have arrived on 22nd, but in April that was a Sunday.

Would you expect electronic payments to leave employer and arrive in the pension the same day?

Asghar

lisyloo wrote: »

My employer contribution shows at hl as 24/2.
Is this late?
I can read the regulations but it says “paid” not received, so I’m a little unsure.

Can anyone confirm if it’s late or not?

I assume you are asking if the tax relief for your employer pension contributions are late?

If your employer pension contributions were paid into HL on the 24 February, then HL would have received the tax relief on Monday the 23rd April and invested into any of your chosen funds yesterday, the 24th.

Asghar

lisyloo wrote: »

It was deducted from March salary.
In previous months they have arrived on 22nd, but in April that was a Sunday.

Would you expect electronic payments to leave employer and arrive in the pension the same day?

So where does the 24/2 come from in your original post?

AnotherJoe

Yes i am very familiar with Hargreaves Lansdown. Not with "hl" though without any other explanation hence my question

Is this consistent or a one off?

I wouldn't expect funds to arrive the same day even if only because they might be sent at say 430pm and thus arrive after cut off for purchases and be accounted for as being received on next day.

So it looks on the face of it as if they sent on 23rd instead of 22nd and thus they arrived in your account on 24th. Can you look at previous payments to see what normally happens?

Is it really likely to be the takeover? Have they changed and started using their payroll department rather than whoever was doing it before? Or have they started making payments from the new company

I would agree I'd expect the funds to be available by 22nd for purposes of purchasing funds, rather than just received and waiting to be cleared otherwise the regulations dont mean much.

lisyloo

I assume you are asking if the tax relief for your employer pension contributions are late?

It's salary sacrifice.
It all arrives as a single payment (gross salary +13.8% employers NI + employers contribution)

lisyloo

So where does the 24/2 come from in your original post?

Apologies that was a typo.
Salary is March. pension is paid in April with 22nd being a Sunday.

Is it valid for them to say - we paid it on Sunday 22nd but it only arrived Tuesday 24th?

lisyloo

Can you look at previous payments to see what normally happens?

certainly - 2017
18/8 (early due to w/end)
19/9
19/10
17/11 (early due to w/end)
19/12

2018
16/1 (last payment under old employer, so guessing they are closing the books)
22/2
22/3
24/4 (late due to w/end)

Is it really likely to be the takeover? Have they changed and started using their payroll department rather than whoever was doing it before? Or have they started making payments from the new company

The dates appear have changed, we've restructured staff, the payroll company are different. I don't know further details but there looks to be a change in the dates a habits (like paying earlier at w/end) to me.

I would agree I'd expect the funds to be available by 22nd for purposes of purchasing funds, rather than just received and waiting to be cleared otherwise the regulations dont mean much.

That's how I'd interpret it.
I'll see what they say.