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HM Treasury confirms first top-up payments for tax year 2024-25

Published on: 18 February 2025
Published by LNB News

LNB News 18/02/2025

Document Information

Issue Date: 18 February 2025

Published Date: 18 February 2025

Jurisdiction(s): England, Northern Ireland, Scotland and Wales

Article summary

HM Treasury has confirmed the implementation of legislation introduced in 2023 to address the disparity in tax relief between relief at source and net pay workplace pension schemes for low-paid workers. The policy aims to provide approximately one million individuals in net pay schemes with an annual top-up payment of around £70, ensuring similar outcomes regardless of the pension scheme type. HM Revenue and Customs (HMRC) is currently developing an IT solution to identify eligible individuals and facilitate these payments. The initiative will commence with the 2024-25 tax year, with the first payments expected to be offered to eligible individuals in 2026.

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