Pension relief and PAYE

PROSS18

Sorry if this is the wrong place.

I suspect I may be paying too much tax based on online tax calculators and think I have worked out why, but just need advice if I am wrong or right.

I am a civil servant and since I started in 2015 I have been contributing the the Alpha Civil Service Pension.  My understanding is that the 5.45% pension deductions are taken before any tax or NI deductions - essentially reducing my tax and NI payments.  I don't think this has been the case however.

Using online income tax calculators my tax and NI is out by a few hundred pounds when I factor in my 5.45% pension payments.  Its as though my work are deducting tax before deducting my pension payment meaning I'm paying more in tax.

The Civil Service Pension website says that my pension payments should be deducted before tax is paid.

If I am right who do I contact? HRMC or my HR department?

chrisbur

Had a quick look and there seems to be two pension schemes each with different ways of accounting for tax.  Can you advise the name of your scheme?

Dazed_and_C0nfused

I think it's very unlikely to be wrong.

Say you earn £30k spread evenly across the year and contribute 5.45% to Alpha.

Your taxable pay (which goes on your P60) would be £28,365 and tax would be calculated on this, not £30k.

Your NI, which is calculated per pay day, would be based on £2,500 each month as these pension contributions do not affect your NI.

Or have you inadvertently signed up for the Partnership pension option 

Marcon

PROSS18 said:

Sorry if this is the wrong place.

I suspect I may be paying too much tax based on online tax calculators and think I have worked out why, but just need advice if I am wrong or right.

I am a civil servant and since I started in 2015 I have been contributing the the Alpha Civil Service Pension.  My understanding is that the 5.45% pension deductions are taken before any tax or NI deductions - essentially reducing my tax and NI payments.  I don't think this has been the case however.

Using online income tax calculators my tax and NI is out by a few hundred pounds when I factor in my 5.45% pension payments.  Its as though my work are deducting tax before deducting my pension payment meaning I'm paying more in tax.

NI used to be reduced, but since contracting out was abolished some years ago, NI isn't affected by pension contributions. Could that explain the difference you are seeing?

Dazed_and_C0nfused

I wonder if the op has somehow got the impression that they are using salary sacrifice?