Does contributing more to a works pension, lower your annual taxable earnings?

Nesty

Hi
Just to say thanks for the replies on the subject it's a DC net pay pension. 

Marcon

Nesty said:

Hi
Just to say thanks for the replies on the subject it's a DC net pay pension. 

Are you quite sure? That's very unusual these days. Do you have a scheme booklet which describes the scheme and how your contributions are paid (including how the tax relief is given)? The terminology 'net pay' is pretty confusing!

Net pay is the norm in DB arrangements. For DC schemes, personal contributions are normally taken from your pay after you've been taxed, and the pension provider then claims basic rate tax relief on your behalf and adds it to your pension pot.