How payments are made

The way that payments are made into your pension is either through salary exchangeor salary deduction. Both give you tax benefits, but they work in different ways. Select a payment method below for more information.

If your earnings are below the personal allowance for income tax you won’t benefit from tax relief on your personal payments as you don’t pay income tax. However, this doesn’t affect the amount that is paid into your pension and you’ll continue to benefit from any money your employer pays in.

If you're not sure how payments are made into your company pension, ask your employer.

Tax rules and limits may change in the future. The information here is based on our understanding in April 2020. Your own circumstances - including where you live in the UK - also have an impact on tax treatment. Find out more about how tax rates can differ on gov.uk.