When you process the first period of a new tax year, the phasing wizard helps you check your pension contributions are compliant.

The wizard applies the standard total contributions of 8%, with a minimum 3% from the employer. 

If you operate a Type 3 pension scheme with 7% total contributions, follow the steps below to complete the phasing wizard.

If total contributions for any of your employees is below 8%, the phasing wizard flags this as below the regulatory minimum.

With a tier three scheme, you must run the phasing wizard with rates set to the 8% minimum first.

Once you've done this, the phasing wizard won't reappear, and you can amend the rates back to the tier three amounts.

The phasing wizard is mandatory. You can't process the first period of the tax year until you've completed the phasing wizard.

Update to Tier three certification

Follow Steps 6 to 17 If you've already completed the Phasing Wizard this tax year. For example, your scheme is changing to tier three mid tax year.

If you haven't completed the wizard yet, begin from Step 1 below.

1. Select Payroll then Change Process Date.
2. Set your process date to your first pay date in the 2026/2027 tax year.
3. Select a single employee on your employee list.
4. Select Enter Payments.
5. The Phasing Wizard opens, complete this and uplift to the 8% minimum.
   • For help with completing the phasing wizard, visit our update the percentages using the pensions module article
6. Select Close in Enter Payments.
7. Select Change Process Date.
8. Set your process date to 05/04/2019.
9. Go to Company then Pension Schemes.
10. Select the pension scheme you want to be on the type 3 certification and select Edit.
11. Select the Employee and Employer tabs and enter the contributions you need to use.
12. Check your settings for Deduct Before Tax and Use Qualifying Earnings for pensionable pay are correct.
13. Press OK and Close.
14. Open the employee record for an individual on this pension scheme.
15. Click the Pensions tab, then click Manage Schemes.
16. Select this scheme and click Edit.
17. Check that the contribution rates are correct. You can edit contributions here for each employee if required.

The pension schemes are now on the 7% minimum. When you process the next pay period, run the Pension Assessment and check that their contributions are correct.