How do I align my worker group to a tax period?

You’ll need to align your worker groups to tax period if your payroll provider is using tax periods to calculate contributions, for example Sage. The tax year begins on 6 April and ends on 5 April. This defines how different pay frequencies based on tax periods should be set up. When you add a new group from ‘Manage groups’ of your Nest home page, you’ll tell us about your earnings period also known as a pay period.

You’ll also have to tell us by when you’ll send us contributions. This is known as payment due date.

Remember, UK pension regulations state that the latest you can set your payment due date is the 22nd of the month following pay day. You must pay any contributions by your payment due date, unless you’re holding on to contributions during the employee’s opt-out period.

Tax monthly

Tax months start on the 6th of the month and end on the 5th of the next month.

When adding a new group choose the payment frequency ‘Tax Monthly’ under Earnings period and payment due date.

You’ll then need to select Payment due date.

Tax weekly

Tax weeks for 2024/25 starts on a Saturday and ends on a Friday. This is because the 2024/25 tax year started on a Saturday and each new pay period needs to begin on a Saturday too.

When adding a new group choose the payment frequency ‘Tax Weekly’ under Earnings period and payment due date.

When you select tax weekly as your payment frequency, the deadline will automatically default to ‘16 days after’ the pay period ends. You can change this to suit your organisation to a maximum of 22 days after the pay period ends.

Fortnightly

Fortnightly pay periods for 2024/25 starts on a Saturday and ends on a Friday. This is because the 2024/25 tax year started on a Saturday and each new pay period needs to begin on a Saturday too.

When adding a new group choose the payment frequency ‘Fortnightly’ under Earnings period and payment due date.

Next you’ll need to tell us when your current earnings period is due to end. You’ll need to choose the date that falls on a Friday.

The following table shows you all the fortnightly tax periods throughout the year that end on a Friday. Only one of these dates will appear on screen in the options provided - choose that one.

Four-weekly

Four weekly pay periods for 2024/25 starts on a Saturday and ends on a Friday. This is because the 2024/25 tax year began on a Saturday and each new pay period needs to begin on a Saturday too.

When adding a new group choose the payment frequency ‘Four weekly’ under Earnings period and payment due date.

Next you’ll need to tell us when your current earnings period is due to end. You’ll need to choose the date that falls on a Friday.

The following table shows you all the four-weekly tax periods throughout the year that ends on a Friday. Only one of these dates will appear on screen in the options provided - choose that one.

Once you’ve chosen your payment due date click ‘Next’. This will give you an overview of the information you’ve entered for the group. If you’re happy click ‘Confirm’. You’ll see an on-screen confirmation message and you can click ‘Go to your groups’ to return to your groups page.

If you’ve already enrolled your members into Nest and need to move them to a new group aligned to tax periods, you can do this through ‘Manager workers’. Please see How do I change a worker’s group from Manage workers? for more information.