Hi
I have setup all the Nest pension details on their website and all payroll calculations done. HMRC basic Paye Tool doesnt show any feature to put pension details. My question is do we show these pension details on payslips which we submit to HMRC? Or HMRC get the details from pension regulators to whom we pay our pension contributions? Or Do i need any other commercial payroll software to put Nest pension details in monthly payroll?
Replies (11)
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I wouldn't touch Basic PAYE Tools with a bargepole.
Use commercial software. Some of them are free for small numbers of employees.
Moneysoft and Brightpay are the ones who get the most mentions on here. There are many others.
It's not fully clear as to what you've done - or what you're asking.
1. "I have setup all the Nest pension details on their website" ... by which I presume you mean you've registered the company/employer with the pension scheme (which has nothing to do with actual contributions to the scheme being due or paid).
2. "and all payroll calculations done. HMRC basic Paye Tool doesn't show any feature to put pension details."
a) How can all payroll calculations be done if the software hasn't been notified of any pension details? Calculation of any ER & EE pension contributions due is a part of the process of 'calculating payroll'.
b) Assuming that this pension is part of meeting the legal requirements relating to Automatic Enrolment, there are many other actions (prior to and after processing the payroll) that you are required to perform - are you aware of these?
c) Are employees paying pension contributions (i.e. as deductions from pay) - and if so are these for a RAS or NPA type scheme? Or has a Salary Sacrifice scheme been set up (in which case all contributions will be by ER not EE)?
3. "My question is do we show these pension details on payslips which we submit to HMRC?" You don't submit payslips to HMRC ... so do you mean FPS submissions to HMRC? Or do you mean payslips given to employees? Either way, the answer is Yes!
4. "Or do HMRC get the details from pension regulators to whom we pay our pension contributions?" Yes they do (if you mean pension scheme not regulator), but only to double-check what you are legally bound to have already notified to HMRC (via RTI) and also separately to the Pension Scheme (after each payroll processed period).
5. "Or Do I need any other commercial payroll software to put Nest pension details in monthly payroll?" No idea ... certainly any competent commercial software will do all the above (process & calc contributions / notify HMRC / notify NEST / remind you to pay both HMRC and NEST) - and I'd be surprised if HMRC's BPT doesn't do so.
BUT ... the reason I've been so pedantic is that it doesn't sound like you understand much about Payroll (let alone Pension contributions) - so if any of the above doesn't make sense to you then you need to get someone with relevant experience to manage these processes for you.
I have done all the calculations manually. All the %ages of pension and NI are available with thresholds so you dont need software to do the calculations. Thanks for your replies no. 3
Well done.
I like old school.
Nest pension is deducted from net pay so doesn’t affect tax or NI. Nest will collect the tax element directly from HMRC. You will either need to provide a manually modified payslip to show the deduction or, as someone else suggested, use BrightPay which is very cheap for a small employer and integrates well with Nest. Moneysoft is good too, but as far as I can recall doesn’t directly interact with Nest.
Thanks Anita but contributions are on qualifying earnings(details provided on their website) not on net pay.
That's not what she said.
Moneysoft does indeed interact with NEST - you can enrol, upload contributions and pay contributions (probably more too but those are the bits off the top of my head that I use regularly)