Penfold uses the Relief at Source method.
This means:
Pension contributions are taken after tax from your employees' pay.
Penfold then claims tax relief directly from HMRC on behalf of the employee.
The tax relief is added into the employee's pension pot automatically — even if they don’t pay tax (as long as they earn over the minimum for auto-enrolment).
What does this mean in payroll?
When setting up Penfold in your payroll software, you should select:
Pension tax relief type:
✅ Relief at Source (NOT "Net Pay Arrangement")
Why does it matter?
Choosing the wrong method could lead to:
Incorrect take-home pay for employees
Missed tax relief
Errors in your pension reports