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NEST and tax relief

why is it saying no tax relief

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God i hate NEST its always such a struggle. Anyway this month it is saying an employee is not eligible for tax relief so it has grossed up the contributions. i have no idea why it had done this anybody got an idea why it might have happened.   Nick

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By Not Anonymous
09th Aug 2021 15:28

Could you explain with figures?

Grossed up suggests a "relief at source" scheme. Which is what I thought NEST was. And means they have received basic rate relief.

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By Paul Crowley
09th Aug 2021 16:55

New employee?
Wrong button pressed?

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Replying to Paul Crowley:
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By carnmores
09th Aug 2021 17:13

Its a pain in the proverbial. It appears its something to do with the NINO and they (NEST) need to check it now i have entered it . Never had it before for new starters who hadn't been allocated their NINO. Instead say of deducting £80 its deducting £100 its all totally unnecessary

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Replying to carnmores:
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By Not Anonymous
09th Aug 2021 18:16

You've not accidentally ticked something to say its salary sacrifice so no pension tax relief would be due to the employee as it's actually an employer contribution??

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RLI
By lionofludesch
09th Aug 2021 19:02

I take it you've checked that all the tickboxes are the same for this rogue employee as the rest of the staff ?

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By Moonbeam
10th Aug 2021 11:50

I find all AE schemes a nightmare when something goes wrong when I innocently try to send data to them.
At least the staff who speak to you when you get through are a lot more knowledgeable than HMRC people, but that's a very small benefit to bear in mind.

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By ireallyshouldknowthisbut
10th Aug 2021 11:52

As an aside, I never understand why employers run net pay schemes for pensions.

Extra bills for NI for employee and employer plus higher rate tax payers lose out on valuable relief unless filing a tax return.

The only plus is a slightly higher gross pay for borrowing purposes.

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Replying to ireallyshouldknowthisbut:
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By Truthsayer
10th Aug 2021 15:34

The one advantage is that you can use NEST, which avoids set-up formalities and management fees that come with other schemes.

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Replying to ireallyshouldknowthisbut:
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By Hugo Fair
10th Aug 2021 19:34

I presume your dislike is actually of RAS (relief at source) schemes, which is what NEST operates? [Net Pay Arrangement method is not an option with NEST].

FWIW an advantage of RAS is for lower paid employees who may not even be paying tax on their employment earnings but will, nevertheless, have 'tax relief' added to their pension contributions by the scheme administrator. Money for nothing!

And I don't understand your comment about "extra bills for NI", since pension contributions (under NPA) may well reduce taxable pay - but has no impact on NIable pay in terms of the EE's NICs.

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By carnmores
10th Aug 2021 11:54

thanks everybody i have checked everything till i'm blue in the face (now that is a change) it appears it's to do with the NINO . its the only query I have out of 45 employees. Nest says its checking the NINO but nowts happened.

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By carnmores
10th Aug 2021 20:54

getting to work out which employees are entitled to Higher Rate Relief can be tricky too

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Replying to carnmores:
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By Not Anonymous
11th Aug 2021 11:32

As in an employee of your own firm or an employer you are operating payroll for?

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Replying to Not Anonymous:
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By carnmores
11th Aug 2021 12:08

client

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