RPSM05203060 - Member Pages: Contributions and tax relief: Miscellaneous issues: Direct debits

I am contributing by direct debit. Is there anything I should take into consideration?

Yes. There are occasions when the timing of the direct debit can cause problems. As explained earlier where payments are made close to the beginning/end of the tax year or pension input period the payments may be treated as being made in a differing tax year/pension input period to that intended.

Tax Year

For the avoidance of doubt a contribution will not be treated as being made in the earlier tax year where payment under the direct debit:

• is due on or after 6 April, or
• is re-processed on or after 6 April because it failed to be paid on its original process date in the earlier year.

Pension input period

The same conditions will apply here as they do for the tax year. However 5/6 April should be replaced by the dates your pension input period ends and begins.