Basic PAYE tools and Nest pension contribution

[CT1212]

I have a new employee who has opted in for Nest pension. Her last month's pay is £640. Nest pension website has calculated her pension contribution is £4.8 after the 20 percent tax relief ( £6 before the 20 percent tax relief), and they have said they would claim the tax relief for her. My question is, how do I record her pension contribution? When I enter her pension contribution in the Basic PAYE tools, should I enter her contribution as £6 or £4.80 next to ''Value of employee's pension contributions paid under "net pay arrangement" ?

Thank you in advance for your help.

 

[Scalloway]

I would use £4.80 as Nest will do the tax calculation.

 

[CT1212]

I would use £4.80 as Nest will do the tax calculation.

Nest said they would claim the 20 percent tax relief for this employee, which means the employee is getting the £6 of her own pension contribution from Nest and receiving the tax relief from Nest. I thought in this case, it should be entered as £6 under pension contribution by net arrangement, so the PAYE tools then deduct £6 ( instead of £4.80) from her gross salary before working out her income tax?

 

[Scalloway]

If you log on to your Nest account they should be able to show what deduction you should make. You don't have to work it out for yourself. It is several years since I worked with this so I am a bit rusty.

 

[Argentum Tax]

I thought in this case, it should be entered as £6 under pension contribution by net arrangement, so the PAYE tools then deduct £6 ( instead of £4.80) from her gross salary before working out her income tax?

As Scalloway says, you enter £4.80 in payroll and that will be deducted from Gross pay.
Nest will receive £4.80 and claim £1.20 in tax relief so the employee gets £6 invested in his/her Nest account.
You only need to worry about the amount you are deducting as employer. The tax relief is not your concern. I suspect you are over-complicating things.