20th July 2022 Net Pay Arrangement Anomaly

HM Treasury has published draft legislation confirming that certain low earning individuals who contribute to pension schemes via a Net Pay Arrangement (NPA) will receive a direct top-up payment from HMRC from 2024-25 onwards, as announced at Autumn Budget 2021. This payment will mean that NPA savers receive the same level of top-up as those who contribute via a relief-at-source arrangement. According to HM Treasury, 1.2 million people are eligible for this pay boost, with 200,000 set to see a £100 increase in their take-home pay. The average beneficiary would receive an extra £53 a year. Further details can be found here.