JuneG

Hello, One of our employees wishes to make a £10k lump sum contribution to their pension this month (Mar24). I've been advised that this is the process but I am a little unclear on the tax relief side of things. - The member transfers the money to bank account; - We pay her an additional non-taxable, non- Niable amount of the same value through the payroll; - We deduct this amount as an additional pension contribution (net pay arrangement so tax relief is given); - We pay the pension provider the £10k and the employee receives tax relief through the payroll straight away. If we deduct the pension contribution by the "net pay arrangement" so that tax relief is applied through the payroll, it will result in a large tax refund so I am unsure if we are allowed to do this? I'm also not entirely sure if we are allowed to make a non-taxable, non-niable payment in the first place but I'm guessing this is ok as it won't count as earnings as it comes directly from employee. Are there are pitfalls to doing this or is there another way to pay a lump sum cont with tax relief? Any help would be appreciated. Thanks.