Gents I've got a question. Long story short I've moved into a role at a company that uses Aviva for its pensions scheme. I got the auto enrollment email from Aviva, it said pension contribution would be deducted after tax (therefore I assume relief at source) with 80% of the gross amount to be deducted, HMRC top up of 20% and a tax code change to make up the rest of the tax efficiency. Simple right?
Well maybe not.
I got my payslip with my 1st pension contribution in. The full gross amount seems to have been deducted before tax and my YTD earnings shows my full cumulative salary and a second line saying 'taxable earnings' which is lower than the full cumulative salary by the amount of the pension contribution deduction. My assumption here therefore is no government 20% top off and change of tax code because essentially my taxable earnings are going to decrease by the amount of pension paid in, and therefore not taxed. Almost like salary sacrifice right?
But surely that's different to what Aviva say, I.e contributions taken after tax/NI etc. Obviously I'll speak to the scheme administrator but it would be good to get someone's view on this. Net net I don't think it makes any difference right?
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