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NEST DD payments being taken late

how/why?

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I have about 25 clients who use NEST for their pension, but 3 always get flagged as paying their contribution late, despite the fact that it is on DD and it's upto NEST when it's taken. [like, WTAF?!?!]

We use Moneysoft and once the RTI is submitted, immediately file the contribution and payment reports via the integrations.

One of the clients is set for payment after 10 days (all set on NEST), the other 2 were 10 days, but I changed to 20 to see if that made a difference. It did not.

Any idea what setting I need to adjust in NEST so that it decides to sweep for the DD in time?

Thanks

Replies (26)

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By SXGuy
26th Jul 2021 16:46

I find there's about a 5 to 7 working day lag between submitting the pension and them calling the DD.

So if you submit and miss the window they say youre late.

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By atleastisoundknowledgable...
26th Jul 2021 16:51

I was just looking at one, submitted June’s on 1/7, NEST is still showing o/s and payment requested.

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Replying to atleastisoundknowledgable...:
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By SXGuy
26th Jul 2021 17:04

That doesn't sound right. And there were enough funds to pay the DD?

Nest is a nightmare when a DD is missed as you have to set it all up again.

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By atleastisoundknowledgable...
26th Jul 2021 17:26

Definitely enough money.

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By lionofludesch
26th Jul 2021 18:00

I never understood it either.

It's either weekends or the money's on it's way but NEST can't be bothered to wait for it.

I just deleted the emails. Nothing bad happened.

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By atleastisoundknowledgable...
26th Jul 2021 18:54

I know they’ve started sweeping for it, I know it’ll sort itself out and everything will be fine, but that doesn’t help too much when I have a client ringing me every month asking why they keep getting these emails …

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Replying to atleastisoundknowledgable...:
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By the_fishmonger
27th Jul 2021 10:39

atleastisoundknowledgable... wrote:

...but that doesn’t help too much when I have a client ringing me every month asking why they keep getting these emails …

It isn't hard to see clients taking this view:
- I keep getting emails telling me I'm late paying.
- These emails sound threatening - reporting me to TPR.
- My accountant keeps telling me it's just the way NEST run things.
- But it's been every time for X months/weeks on the bounce.
- I'm not so sure they aren't buggering things up.

It really defies understanding as to why things which are tagged in accordance with the recipients architecture, and sent electronically, cannot be instantly updated on the recipient system in the modern era*.

Banks do it with trillions of transactions worldwide every day - your other half ithdraws $200 from an ATM in Sydney and 20 seconds later, you can see it on your app anywhere else in the world (subject to having a data connection).

* Real Time Information - the best oxymoron of our time!

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Replying to lionofludesch:
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By Hugo Fair
26th Jul 2021 19:02

"Nothing bad happened" ... and, in the circumstances set out by OP, probably never will.
BUT ... every instance of 'late payment' is amongst the data that scheme providers are duty bound to report to TPR.
Whilst it's unlikely to breach their 'needs attention' criteria as it stands, there's an increased tendency at HMRC to automate generation of penalty notices ... and TPR have been known to take note of "what works at HMRC"!

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By tom123
27th Jul 2021 08:35

When you say 'late' do you mean after 19th of the month following pay month?

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By atleastisoundknowledgable...
27th Jul 2021 08:42

I mean NEST email to say it’s overdue. But they’re in charge of when to take the money …

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By lionofludesch
27th Jul 2021 08:57

atleastisoundknowledgable... wrote:

I mean NEST email to say it’s overdue. But they’re in charge of when to take the money …

I always thought that was just weird.

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Replying to lionofludesch:
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By Hugo Fair
27th Jul 2021 09:59

Agree it's weird, but it's one of the few areas where the T&Cs of a specific scheme are not the be-all-and-end-all ... there is a legislative backstop.

https://www.thepensionsregulator.gov.uk/en/employers/managing-a-scheme/c... :
* "You need to pay your contributions to your staff pension scheme on time. You must agree the due dates for paying contributions to the scheme with your trustee or provider.
However the law requires that when you deduct contributions from your staff's pay you must pay these to your staff pension scheme no later than the 22nd day (19th if you pay by cheque) of the next month.
You risk being fined by us if you don’t pay on time."

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By lionofludesch
27th Jul 2021 10:03

Hugo Fair wrote:

Agree it's weird......

I meant it's weird that they complain about your payment being late when it's they who are in the box seat to collect it.

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Replying to lionofludesch:
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By Hugo Fair
27th Jul 2021 10:13

Yeah, I know - but your post was at the end of a mini-thread that started with uncertainty over what constituted 'late' ... so I was trying to tag onto the end (not direct my comment solely at you).
But I agree ... it's certainly weird that the 'by date' is defined legally / the scheme can over-ride this by demanding an earlier date / the scheme has control over taking the DD - and yet the client is 'late' if scheme fails to take DD for reason not within employer's control.
Aside of the annoyance (and weirdness) I'd suggest OP at least checks whether the 'late' label is being applied to the legislative date or an earlier scheme-based date.

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By atleastisoundknowledgable...
27th Jul 2021 10:23

Hugo Fair wrote:

I'd suggest OP at least checks whether the 'late' label is being applied to the legislative date or an earlier scheme-based date.

A bit of both. When the scheme is set up, you can choose when the due date is. i believe that the default in 10 days 9that's what most of mine are anyway) and NEST go off that date. As mentioned above, I moved one of the clients to 20th in the hope that that would give NEST time, but apparently not.

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Replying to atleastisoundknowledgable...:
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By Hugo Fair
27th Jul 2021 11:14

Sounds to me like you may be confusing two time-related concepts:
* a duration (e.g. 10 days) - which I'm presuming is agreed between you and NEST (individually for each employer?); and
* a fixed-date (e.g. 22nd of calendar month) - which is the latest date by which payment must have been made (legally).

Fairly obviously these two 'definitions' may not always lead to the same result ... especially if the duration item relates to a period starting from when you submit a return to the scheme (which is likely to vary depending on when payroll was run for that month).
NEST have some weird processes that include not automatically accepting values in your return at face value (they 're-do' the contribution calcs at their end and cross-check the results with what you've submitted) ... and this takes time. So it could be that the 'duration' you're allowing is insufficient (either because of bank hols or weekends or sheer incompetence by NEST)?

My point being that if, despite all the apparent inefficiencies, the payment is taken before the legislative 'due by' date - then concern about TPR disappears and you are left with an interesting discussion with NEST.
However if the 'due by' date is consequently being missed (even occasionally), then you still need the same conversation with NEST - but with greater urgency.

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By bernard michael
27th Jul 2021 09:59

Can I assume that you've been into the NEST "manage contributions" section and authorised the Direct Debit ??

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By atleastisoundknowledgable...
27th Jul 2021 10:06

We authorise the payment via an upload from Moneysoft. I have been into the 'manage contributions' section and can see that the payment of £X has been submitted, there is £0.00 pending and yet it's still showing as overdue as £0.00 has been received.

Farce.

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By Chris Maslin
27th Jul 2021 10:58

We use NEST for our own staff pensions, and when you submit it lets you choose when the DD is collected, from a window of perhaps a fortnight or so. We do this directly from our NEST portal. Never had the message you're talking about (though in other ways I do find NEST very painful to use!)

Sounds like you're doing these submissions via some third party API (Moneysoft)? Might be worth querying with them, see if there's something odd they're doing or not doing by default.

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By bernard michael
27th Jul 2021 11:18

Just to be pedantic as I don't have the same problem and also use Moneysoft & Nest

When you pressed "submit" have you then pressed "confirm" when the direct debit information appears ??

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By atleastisoundknowledgable...
27th Jul 2021 11:34

I can’t remember exactly what the wording is, but we follow the same process for 25 clients and it works for 22 of them.

1. Submit RTI & check confirmation message
2. Submit pension ‘contributions’ report & check confirmation message
3. Submit pension ‘payment’ report & check confirmation message

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Replying to atleastisoundknowledgable...:
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By bernard michael
27th Jul 2021 11:46

atleastisoundknowledgable... wrote:

I can’t remember exactly what the wording is, but we follow the same process for 25 clients and it works for 22 of them.

1. Submit RTI & check confirmation message
2. Submit pension ‘contributions’ report & check confirmation message
3. Submit pension ‘payment’ report & check confirmation message


That submits the contribution to NEST.
You then have to go into NEST and submit the contribution for payment
Have you not been following the procedure detailed in my answer??

If you haven't that's why you are getting the "late " message

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By atleastisoundknowledgable...
27th Jul 2021 11:55

#3 is the equivalent of what you are saying.

Some payroll softwares such as Xero don't let you authorise the payment 'in app', but Moneysoft does.

Is the plural of software software or softwares? I get the red squiggly line under softwares but aurally I think that makes sense.

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By louised
27th Jul 2021 12:25

Ours does this if we have someone who we need to select a reason for non payment. They are usually shown at the top of the list on the schedule when you log into nest.

So the schedule gets submitted and does get collected but then we get an email saying urgent action is needed - overdue contribution schedule. It's because the schedule stays open until you've made a selection on the people who have either insufficient earnings or whatever.

So the main contribution is collected but even though nothing is due for those other people it tells you it is overdue because the schedule is not fully closed. You have to log into nest and select a reason for them and save the schedule.

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By acceje
27th Jul 2021 14:08

When you file "Approve for payment" from Moneysoft on a Monday then NEST will take the money on a Thursday. So you need to check which day that the approve for payment is filed on.

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Replying to acceje:
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By bernard michael
27th Jul 2021 14:12

acceje wrote:

When you file "Approve for payment" from Moneysoft on a Monday then NEST will take the money on a Thursday. So you need to check which day that the approve for payment is filed on.


I've always gone into Nest to submit the payments not done it via Moneysoft
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