NOW: Pensions Tax Relief — Are You Owed Money?

<p class="lead">NOW: Pensions is a widely used auto-enrolment workplace pension provider. If you are a member and pay income tax at 40% or above, there is a specific tax relief issue that affects you — and it requires action on your part.</p> <h2>NOW: Pensions and tax relief — what you need to know</h2> <p>For a period, NOW: Pensions operated using a Net Pay Arrangement rather than Relief at Source, which caused issues for lower earners who missed out on basic rate relief. That situation has received regulatory attention and steps have been taken to compensate affected members.</p> <p>However, for higher-rate taxpayers, the core issue is different: even under Relief at Source, only 20% basic rate top-up is applied automatically. The additional 20% (or 25% for 45% taxpayers) must still be claimed directly from HMRC. That has never been automatic and never will be — regardless of which pension provider you use.</p> <h2>How to confirm your NOW: Pensions relief method</h2> <p>Before calculating any claim, confirm which relief method applies to your specific account. You can do this by:</p> <ul> <li>Logging in to your NOW: Pensions online account and checking your contribution statements</li> <li>Calling NOW: Pensions member services and asking directly: "Does my account use Relief at Source or Net Pay?"</li> <li>Checking your payslip — if your pension deduction comes from your gross pay before tax is applied, that suggests Net Pay; if it comes from your net pay, it is likely Relief at Source</li> </ul> <p>If you are unsure, err on the side of checking — the call takes five minutes and could be worth thousands of pounds.</p> <h2>What to check first</h2> <p>Log in to your NOW: Pensions account and review your contribution history. You need to confirm:</p> <ul> <li>Whether contributions are shown as net or gross</li> <li>Whether basic rate top-up (20%) has been added to your contributions</li> </ul> <p>If basic rate relief has been applied and you pay 40% tax, the additional 20% is owed to you by HMRC. If your contributions are shown at gross already (because they come from pre-tax pay), you are on a different arrangement and this particular claim does not apply.</p> <h2>How much could you be owed?</h2> <p>If your account uses Relief at Source correctly:</p> <ul> <li>£200/month net contribution → additional 20% relief owed: <strong>£600/year</strong></li> <li>£400/month net → <strong>£1,200/year</strong></li> <li>£600/month net → <strong>£1,800/year</strong></li> </ul> <p>Four backdatable years means potential claims of several thousand pounds. The <a href="https://www.pensionreclaim.com">PensionReclaim calculator</a> works out your specific amount based on your actual contributions.</p> <p>Remember: the backdating window covers the last four complete tax years. The 2021/22 year is the oldest claimable year and closes permanently on 5 April 2026. After that date, you lose the right to include it forever.</p> <h2>What documents do you need?</h2> <p>To claim the additional relief you will need:</p> <ul> <li>Gross pension contribution figures for each relevant tax year from your NOW: Pensions statements</li> <li>Written or documented confirmation that your scheme uses Relief at Source</li> <li>Your National Insurance number and address for HMRC correspondence</li> </ul> <p>NOW: Pensions can provide annual contribution summaries for past tax years on request. Ask specifically for the "gross contribution figures for relief at source purposes" to avoid any confusion with net figures.</p> <h2>How to claim</h2> <p>Once you have confirmed your gross contribution figures, you can claim additional higher rate relief via Self Assessment or a written letter to HMRC. <a href="https://www.pensionreclaim.com">PensionReclaim</a> can handle the full process for £99, including identifying the correct figures and submitting everything on your behalf.</p> <p>HMRC typically takes 6–10 weeks to process written claims and pays by cheque or tax code adjustment. The money goes directly to you — not into your pension.</p> <h2>What if I already do Self Assessment?</h2> <p>If you complete a Self Assessment tax return, HMRC may have already applied your higher rate relief — but only if you declared your pension contributions correctly. Many people file Self Assessment for other reasons (rental income, dividends) without adding pension contributions. Check your previous returns to confirm whether the relief appears. If it does not, you can submit an amendment for each affected year.</p> <h2>Frequently asked questions</h2> <h3>Is there an ongoing issue with NOW: Pensions tax relief I should know about?</h3> <p>The historical net pay issue primarily affected basic rate or non-taxpayers, not higher-rate payers. For higher-rate contributors, the main issue is the unclaimed additional 20% that applies across all Relief at Source schemes. Confirm your scheme type first, then act accordingly.</p> <h3>What if NOW: Pensions has changed my relief method?</h3> <p>Contact NOW: Pensions directly to confirm which method currently applies to your account. This is the essential first step before calculating any claim. If your method changed part-way through a year, your claim will cover only the months where Relief at Source applied.</p> <h3>What is the deadline?</h3> <p>Four complete tax years: 2021/22 closes permanently on <strong>5 April 2026</strong>. Each subsequent year closes on 5 April four years later.</p> <h3>Can I claim if I have since left my NOW: Pensions employer?</h3> <p>Yes. The claim is based on contributions made during those tax years, not on your current employment status. Former members can still claim backdated relief.</p> <h2>The deadline is approaching — act now</h2> <p>With the end of the tax year almost here, checking your NOW: Pensions account and initiating a claim now protects your right to include 2021/22 in your backdated claim.</p> <p><a href="https://www.pensionreclaim.com"><strong>Check your NOW: Pensions tax relief at PensionReclaim →</strong></a></p>