Facts about National Insurance

By THIS IS MONEY
Updated:

 

I have contracted out of SERPS but I think I may be being taxed as if I was still contracted in. How can I check if I'm paying the correct amount of income tax?

Jon Briggs,associate director at independent financial advisers Chartwell Investment says: Any deductions relating to your pension are nothing to do with income tax but National Insurance Contributions (NICs). If you are in a company pension scheme your reduced contributions will be worked out by the payroll department, so check with them to ensure that your deductions are correct. If you have a personal or group personal pension you still pay the full NIC contributions even if you are contracted out of SERPS. The Department of Social Security then rebates the relevant portion to the company running your pension plan. You need to check with the company that it is receiving the rebate.

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