Additional Aegon Contributions

dont_use_vistaprint

Hi

If I make additional contributions in Feb and March, in excess of monthly income, direct to Aegon as opposed to via Payroll, will I lose the NI benefits? Will I still get the full HR tax benefits? Its set up as an employer pension salary sacrifice 5% each (which shows as 10% employer) , and is the Group Pension Default Plan.

What is the deadline to make these payments to Aegon for this tax year and simplest method to pay them ?

Thanks

JoeCrystal

I looked into making a one-off Aegon contribution a few years ago, and if I remember correctly, you can either pay by BACS (with the policy number as payment reference) or cheque. You would also need to supply the proof of ID (certified copy of passport or driver's license) and proof of address (copy of recent bank statement or utility bill) before they will process the contribution. That is why I didn't bother in the end.

As for NI benefit, you would not see any as this is a personal contribution, and the tax relief will only be 20% so you may need to reclaim other 20% by getting in touch with HMRC.

BoGoF

You will lose the NI benefit and will only get 20% relief. You will need to claim any further relief from HMRC.

You would be best asking Aegon what the deadline is to receive payment.

Any reason you are doing outside payroll?

JoeCrystal

BoGoF wrote: »

Any reason you are doing outside payroll?

It may be a case of an employer not wanting to do any additional contribution. This was the case with my employer, unfortunately.

westv

On a similar subject, I noticed today that the link to set up a direct debit into an ex-employee pension with Aegon doesn't work.

dont_use_vistaprint

JoeCrystal wrote: »

It may be a case of an employer not wanting to do any additional contribution. This was the case with my employer, unfortunately.

Yes its a tiny company of consultants & too much hassle, everyone just puts more in investments etc the pension is just automated / minimum required for legal compliance for the 18/19/20 anticipated amounts

JoeCrystal

dont_use_vistaprint wrote: »

Yes its a tiny company of consultants & too much hassle, everyone just puts more in investments etc the pension is just automated / minimum required for legal compliance for the 18/19/20 anticipated amounts

At least your employer is good enough to make salary sacrifice. I tried to convince my employer on the benefit of doing it, but no joy. Nothing is stopping you from setting up your private pension and pay into that instead.

Albermarle

Nothing is stopping you from setting up your private pension and pay into that instead

Sometimes workplace pensions can have lower charges that doing it yourself , so that needs to be checked before starting a separate pension, more admin etc

dont_use_vistaprint

Albermarle wrote: »

Sometimes workplace pensions can have lower charges that doing it yourself , so that needs to be checked before starting a separate pension, more admin etc

I thought adding to a private pension would have the same tax relief and lack of NI benefit as making one-off payments into Aegon myself, so its not really worth it is it ?

dont_use_vistaprint

JoeCrystal wrote: »

At least your employer is good enough to make salary sacrifice. I tried to convince my employer on the benefit of doing it, but no joy. Nothing is stopping you from setting up your private pension and pay into that instead.

I cannot understand why any employer wouldn't do this ? If they have to offer a pension why not do salary sacrifice, it benefits them too

westv

dont_use_vistaprint wrote: »

I cannot understand why any employer wouldn't do this ? If they have to offer a pension why not do salary sacrifice, it benefits them too

The place I was TUPE transferred to for 6 months didn't either.