If you manually add a pension contribution via the Payroll Period Input form, and the contribution is subject to basic rate (BR) tax relief, the applicable tax may not be refunded automatically.
If you're unfamiliar with any pension terminology, see Pensions: Key concepts, glossary, and terminology.
Why this happens
Contributions entered manually through the Payroll Period Input form are not automatically adjusted for BR tax relief. If BR relief hasn't been applied, you'll need to calculate and enter the net pension deduction yourself.
Calculating the net pension deduction
For each employee contribution, enter the net pension deduction, calculated as:
Net Pension Deduction = Pension Contribution − Basic Rate (BR) Tax Relief
Example
Pension contribution for August: £100.00.
Basic Rate tax relief (20%): £20.00.
Net pension deduction to enter: £80.00.
For a backdated deduction, follow the steps to make previous period corrections (see Create and edit corrections) and enter the contributions in their relevant periods.
Notes
This is only applicable if the pension scheme contribution is subject to tax relief at source.
The steps above will not generate the BR tax refund row, so it must be calculated and included in the manual pension contribution calculation.